Encorp to jointly develop mixed development in Kuantan

• Encorp said the proposed joint venture (JV) provides a strategic partnership and is in line with the group's principal business activity to expand its property development segment.

KUALA LUMPUR (Sept 9): Property developer Encorp Bhd has teamed up with Touch Group Holdings Sdn Bhd to jointly develop a 4.97-acre piece of land in Kuantan, Pahang into a mixed development featuring retail lots, serviced apartments and a car park podium.

Encorp said the proposed joint venture (JV) provides a strategic partnership and is in line with the group's principal business activity to expand its property development segment.

"This will also enable Encorp to build its branding in other states while strengthening the business relationship with Touch Group in other business segments," it added.

In a Bursa Malaysia filing, Encorp said its wholly owned subsidiary Encorp Construction & Infrastructure Sdn Bhd has signed a JV agreement with Touch Group's unit Touch Millennium Sdn Bhd (TMSB), which is the landowner, for the proposed project. Encorp will own a 70% stake in the JV company while TMSB will own the rest.

The estimated total cost of the proposed JV is RM328.5 million and it is expected to generate a gross profit of RM74.05 million.

Encorp said it will fund the proposed JV through internal funds and/or financing facilities.

The project is expected to commence in the first quarter of 2023 and is expected to be completed by the fourth quarter of 2027.

Encorp shares were untraded on Friday (Sept 9). They last closed at 24.5 sen, with a market capitalisation of RM77.59 million.