KUALA LUMPUR: Encorp Bhd
has signed a memorandum of understanding (MOU) with the Federal Land Development Authority (FELDA) to explore a proposed collaboration for the design and construction of staff housing for the agency.
In a filing with Bursa Malaysia, Encorp said the MOU sets out FELDA's intention to award and appoint the property developer as the main contractor for the project under a design-and-build model.
Under the MoU, Encorp will be responsible for the design and construction of the staff housing project, including ensuring compliance with government requirements, laws and regulations, as well as meeting timelines agreed with FELDA.
The company said the MOU serves as a framework for further discussions and negotiations pending the execution of a letter of acceptance (LOA) and definitive agreements.
“The collaboration is intended to serve as a basis for further discussions and negotiations pending the execution of a formal definitive agreement,” it said.
Encorp said the proposed collaboration is aligned with its core competencies in property development and construction, while providing an opportunity to pursue projects with a strategic public sector entity.
FELDA is deemed interested in Encorp through Felda Investment Corporation Sdn Bhd, which holds 197.07 million shares, representing a 62.3% stake in the company.
In a separate statement, Encorp group chief executive officer Ahmad Harzimi Mohd Taib said: “We are honoured to be entrusted with contributing our construction expertise to FELDA’s development, and we are deeply committed to providing modern, well-planned and quality residential environments for the well-being of the FELDA workforce.”
