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KUALA LUMPUR: A wholly-owned subsidiary of Kumpulan H&L High Tech Bhd (KHLB), H&L Properties Development Sdn Bhd (H&LPD), has entered into a joint venture (JV) to develop two plots of land in Kinta, Perak with a gross development value (GDV) of RM21 million.
H&LPD, which owns both plots of land, will be entitled to 21% of the GDV and earn an estimated RM2.8 million in profit before tax from the development.
"The proposed JV is in line with H&LPD's principal activities of property development. It will enable H&LPD to unlock working capital tied up in long-term investments and enhance its liquidity as well as strengthen its financial position," said KHLB in an announcement to Bursa Malaysia on Wednesday, July 20.
Measuring 7.99ha, the land will be developed by PY Homes Reality Sdn Bhd (PYHomes) into a mixed residential project comprising 68 double-storey terrace houses, two semi-detached double-storey houses and a double-storey bungalow.
Under the JV, PYHomes will bear all costs related to the development and promotion of the project and KHLB will not assume any financial obligation or liability.
"It is expected to contribute positively towards the earnings of the company in the future upon commencement of development and sales," KHLB said.
The JV is conditional upon H&LPD receiving approval for a developer's licence and advertising permit, as well as approval for the conversion of the land, presently categorised as agricultural, to residential.
The proposed JV is expected to be completed two years from the agreement date.
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