Iris Corp Bhd group managing director Datuk Tan Say Jim
KUALA LUMPUR: Iris Corp
Bhd plans to team up with Qingjian International Group Co Ltd (QIGC) in undertaking the RM622.7mil mixed development project awarded to it by Putrajaya Corp last November.
The company, which derives about 70% of its pre-tax profit from the identification solutions business, told Bursa Malaysia on Monday that it had signed a memorandum of understanding with QIGC, as it “is desirous” to appoint a co-developer for the project.
Iris received the contract from Putrajaya Corp on Nov 26 last year to develop 1Malaysia Civil Servants Housing Programme (PPA1M) and mixed development (commercial and residential buildings) on 16.2 acres in Putrajaya.
The development comprises 1,928 houses under PPA1M, 508 houses for open sale, and 22 units of commercial buildings also for open sale.
The construction period is 30 months from the date that Iris completes the conditions precedent as the developer (at the time of the Bursa announcement last year, the conditions precedent had not been set forth).
In its announcement to the exchange last year, Iris did not mention it would be seeking a joint-venture partner.
On the rationale for the MoU with QIGC, Iris said: “The parties have reached the understanding for their respective mutual benefit towards the implementation of the project.”
The MoU will be in force for three months and will expire automatically unless the parties enters into an extension at the option of Iris.
PPA1M is a government-initiated housing project that enables low- and medium-income civil servants to own affordable and quality homes in urban areas.
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