KUALA LUMPUR: MLABS Systems Bhd has entered into a joint venture agreement (JVA) with Seacera Builders Sdn Bhd for a RM156.46 million estimated gross development value (GDV) project in Pahang.

       In a filing with Bursa Malaysia today, the company said the JVA was made via its indirect unit, Ikhlas Al Dain Sdn Bhd.

       "The development, on Malay reserve land (MRL) in Kuantan, is to build 137 holiday home villas.

       "Ribuan Bakat Sdn Bhd, which is the registered proprietor of all the MRL parcels for the development, has granted Ikhlas the sole and exclusive rights to carry out the construction on the MRL,” said Mlabs.

       It said Seacera, as the developer, has agreed to pay RM11.50 million, which is equivalent to the development rights value, via payment in kind through the transfer of any of the holiday home villas or such other buildings (if any) to be constructed under the project.

       The group said the proposed JVA could provide an opportunity for Mlabs to unlock the value of the development rights of the MRL.

       "Further, the developer is in a better position to carry out the development of the proposed JVA as it has the necessary knowledge, expertise and experience in the business of property development and related business and is able to provide technical, commercial, financial and management expertise,” it said.

       The proposed JVA will not have any effect on the issued and paid-up share capital and substantial shareholders’ shareholdings, earnings per share, net assets and gearing of Mlab, for the financial year ending June 30, 2022.

       Nevertheless, it is expected to have a positive effect on future earnings and net asset per share arising from the development rights value received from the developer, it added. - Bernama