KUALA LUMPUR (Nov 2): Tropicana Corp Bhd has entered into a joint venture agreement with Puncak Alam Housing Sdn Bhd for the development of affordable homes on three parcels of leasehold land in Ijok, Kuala Selangor.

In a filing with the bourse, the property developer said the agreement was entered into by its wholly-owned subsidiary Tropicana Senibong Sdn Bhd (TSSB), which will secure the development rights for the 363 acres of land parcels from Puncak Alam Housing.

In return, Puncak Alam Housing will be entitled to RM334.54 million in consideration, which will be paid progressively for a period of up to 72 months from the date of the agreement.

Tropicana said the joint venture allows the group to participate in the development without requiring significant cash outlay for an outright purchase of the land, while also replenishing its existing property development projects and enhancing its profile in the Klang Valley.

The group noted that the land is strategically located, given its vicinity to the Kuala Lumpur-Kuala Selangor Expressway (LATAR) and Bandar Tasik Puteri in the north, Jalan Sungai Buloh and Guthrie Corridor Expressway in the east, Jalan Bukit Cherakah and Kampung Bukit Kapar in the south, and the West Coast Expressway in the west.

The land, said Tropicana, allows for the group to develop another signature project, while the matured locale provides an opportunity for the group to increase brand affinity among its target markets.

“In view of the above considerations, the joint venture will generate economic benefits and contribute positively to the future earnings of the group,” Tropicana said.

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