KUALA LUMPUR (Jan 13): Thriven Global Bhd has teamed up with the Perak State Secretary Inc (SSI) to build affordable houses on 11 pieces of freehold land measuring 43.297 acres (17.52 ha) in Behrang Ulu, Muallim, Perak.

In a filing with Bursa Malaysia yesterday, Thriven said its 85%-owned subsidiary Thriven NCR Sdn Bhd had entered into a joint-venture (JV) agreement with SSI for the proposed development. New Catalysts Resources (M) Sdn Bhd owns the remaining 15% of Thriven NCR shares. Under the JV agreement, SSI is entitled to RM6.49 million plus 25% of pre-tax profit of the proposed project, while Thriven NCR will be entitled to the remaining 75% of pre-tax profit.

Thriven said Thriven NCR will undertake to develop the proposed project on the pieces of land and to bear the cost to undertake the project. It will also carry out the marketing and selling of the affordable houses.

“[On the other hand,] SSI will render assistance as may be necessary in obtaining and/or procuring all such relevant approvals, consents, permits, licences for and/or in relation and/or in connection with the project,” added Thriven.

Triven expects to fund the JV project via shareholder advances and/or bank borrowings.

The proposed project is located about 3km from Proton City, 9km from University Pendidikan Sultan Idris and 11km from the Tanjung Malim KTM station. Of the 11 pieces of land, SSI is the owner of seven. It has entered into sale and purchase agreements with owners of the remaining four plots of land, which will be transferred to SSI within six months from the date of yesterday’s JV agreement.

Thriven said the JV allows it to leverage on its experience in developing affordable housing projects and at the same time benefit from lower capital outlay, compared to acquiring and subsequently developing land by itself.

This article first appeared in The Edge Financial Daily, on Jan 13, 2017. Subscribe to The Edge Financial Daily here.

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