PROPERTY NEWS: Encorp to venture a joint mixed development in Kuantan

Key takeaway:

Encorp Bhd, a developer of real estate, and Touch Group Holdings Sdn Bhd have joined forces to transform a 4.97-acre plot of land in Kuantan, Pahang, into a mixed development comprising retail spaces, serviced apartments, and a podium for parking.

The planned joint venture (JV), according to Encorp, offers a strategic alliance and is consistent with the group's main business activity to grow its property development segment.

As the commercial partnership with Touch Group is strengthened in other business categories, it will also allow Encorp to expand its branding in other states.

Encorp claimed in a Bursa Malaysia filing that Touch Group's subsidiary Touch Millennium Sdn Bhd (TMSB), which owns the land, and its wholly owned subsidiary Encorp Construction & Infrastructure Sdn Bhd have entered into a joint venture agreement for the planned project. Encorp will own 70% of the JV company's stock, and TMSB will hold the remaining 30%.

The planned JV is anticipated to cost RM328.5 million in total, with a projected gross profit of RM74.05 million.

Encorp stated that it will finance the proposed JV using internal resources and/or financing options.

The project is anticipated to start in the first quarter of 2023 and finish in the last three months of 2027.

© September 2022, edgeprop.my