KUALA LUMPUR (May 3): Perak Corp Bhd has awarded a contract to Rapat Setia Sdn Bhd to develop a 23.384-acre piece of land in Bandar Meru Raya, Perak, into a gated and guarded housing development.

In a filing with Bursa Malaysia yesterday, Perak Corp said its wholly-owned subsidiary PCB Development Sdn Bhd, which owns the piece of land, has today entered into an agreement with Rapat Setia for the development.

Under the deal, PCB Development will be entitled to 22% of the gross proceeds of sale subject to a guaranteed minimum aggregate sum of RM20.57 million.

The development features 303 units of one- and two-storey terrace houses. Rapat Setia will complete the development within 24 months.

"The development is expected to contribute positively to the group's earnings per share and net assets per share for the financial years ending Dec 31, 2019 to 2021," said Perak Corp.

The group has been loss-making since its financial year ended Dec 31, 2016 (FY16). Between FY16 and FY18, it has an accumulated net loss of RM527.51 million, according to its annual report.
 
On April 30, Perak Corp’s independent auditors had issued a statement of material uncertainty over the company’s ability to function as a going concern. This was in relation to the group's current liabilities, which exceeded its current assets by RM316.5 million, and its negative cash flow position of RM68,902 as at Dec 31, 2018.

Shares in Perak Corp were untraded yesterday. The thinly-traded stock was last done at 55 sen on April 25 for a market capitalisation of RM55 million. — theedgemarkets.com

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