PETALING JAYA: Encorp Bhd has signed a joint-venture (JV) agreement with the Federal Land Development Authority (Felda) to complete the development of a residential property project belonging to Felda in Padan Siding, Perlis.

       The project entails the development of low-cost, medium-cost, semi-detached and shop houses over two phases of 25 and 21 acres respectively.

       In a filing with Bursa Malaysia, Encorp said Felda had partially developed Phase 1 of the project.

       “Such development and construction has been deferred and Felda is now desirous to rehabilitate and complete the development of Phase 1 of the project,” it said.

       Under the terms of the agreement, profit from Phase 1 of the project will be shared on a ratio of 80% for Felda and 20% for Encorp, while profit for Phase 2 will be based on a 75:25 ratio with Felda taking the larger share.

       Encorp will be solely responsible for the payment of all development costs of the project, which is estimated at RM57.32mil.

       Felda is deemed interested in Encorp via Felda Investment Corp Sdn Bhd (FIC), which holds a 62.3% stake in company.

       In addition, Datuk Shireen Ann Zaharah Muhiudeen and Mahadzir Mustafa, the non-independent non-executive directors of Encorp, are deemed interested in the JV by virtue of them being the nominees of FIC and have accordingly abstained from board deliberations and voting in respect of the JV.