Jentayu enters JV for RM78mil GDV condo project

KUALA LUMPUR: Jentayu Sustainables Bhd's wholly-owned subsidiary Ipmuda Properties Sdn Bhd is collaborating with Encorp Bhd's unit Encorp Development Sdn Bhd to develop a 10-storey condominium with an estimated gross development value of RM67.72mil.

In a statement, Jentayu said the proposed development located on a 1.6-acre leasehold land in Bukit Kepayan in Kota Kinabalu, Sabah, will comprise 78 units of type A and 88 units of type B condos with built-up areas of about 787 and 530 sq ft respectively.

Under the terms of the agreement, Ipmuda Properties will be entitled to 15% of the profits in the project while the remaining 85% will go to Encorp Development.

Development of the proposed project is expected to commence on July 1, 2022, and completed by June 30, 2026.

Ipmuda Properties, which is the registered owner of the land, will be responsible for obtaining the approval of plans, permits and licences necessary for the proposed project.

Meanwhile, Encorp Development will, at its sole cost and expense, develop the proposed development, including designing, planning, constructing, completing and commissioning the approved layout plans.

"Through this partnership, Ipmuda Properties will be entitled to a minimum of RM10.8mil or a percentage of the GDV of the land, up to RM11.3mil.

"We recognise that this is a good opportunity to unlock the value and potential of our land," said Jentayu executive chairman Datuk Beroz Nikmal Mirdin in a statement.

He added that the JV is in line with its effort towards asset rationalisation.

"Ultimately, our main focus is on our renewable energy (RE) venture. Therefore, the group’s strategy has been to monetise non-yielding assets and utilise the money generated for our RE business, areas which we have more experience in," he said.