In a bourse filing, Ireka said its subsidiary will undertake the mixed development and related works on 200 acres of government land in Bandar Baru Kertih Jaya, Mukim Kertih in Kemaman.
In addition, it will undertake the hybrid development of 100 units of affordable housing Type A and six units of single-storey shoplots and related works on 11.55 acres of government Land in Kampung Semayor, Mukim Kemasik in Kemaman.
According to the filing, the project will contribute RM34.72mil in development funding to the state government.
Among the conditions, Ireka Development will be required to sell a minimum of 50% of the shop lot units to Malaysia/Bumiputera and provide a 5% reduction in the sale price to this group of buyers.
"The Board is of the opinion that the acceptance of the LOA and the subsequent execution of the Project is expected to contribute positively to the net assets and earnings per share of Ireka and its group of companies for the financial year ending 30 March 2022 and onwards until the completion of the Project," it said.