Kuala Lumpur: Jentayu Sustainables Bhd announced that its wholly-owned subsidiary, Ipmuda Properties Sdn Bhd (IPSB), has entered into a joint-venture agreement (JVA) with Encorp Development Sdn Bhd (EDSB) to develop a 10-storey condominium block in Sabah with a gross development value (GDV) of RM68 million.
EDSB is a wholly-owned subsidiary of Encorp Bhd.
In a statement, Jentayu said the proposed condominium development would be built on a 0.65-hectare leasehold land located in Bukit Kepayan, Kota Kinabalu.
The project will comprise 78 units of Type A and 88 units of Type B with built-up areas of 787 square feet (sq ft) and 530 sq ft respectively. IPSB is the registered owner of the land.
“Development is expected to commence in July 2022 and slated for completion by June 30, 2026,” it said.
Pursuant to the JVA, IPSB will be responsible for obtaining the approvals of the plans, permits and licences necessary for the proposed development.
In turn, EDSB will, at its sole cost and expense, develop the proposed development which includes designing, planning, constructing, completing, and commissioning of the approved layout plans.
“Through this partnership, IPSB will be entitled to a minimum of RM10.8 million or a percentage of the GDV of the land, up to RM11.3 million. 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.
He also said that the joint-venture is in line with the group’s effort towards asset rationalisation.
“Ultimately, our main focus is on the 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.
“The team has been working doubly hard to ensure the delivery of our RE projects and we remain steadfast in our journey to become the leading RE player in Malaysia,” said Beroz Nikmal.
