Perak Corp Signs Supplemental Agreement To Amend JDA With Urbax

KUALA LUMPUR, Feb 14 (Bernama) -- Perak Corporation Bhd (Perak Corp) has signed a Supplemental Agreement with Urbax Properties Sdn Bhd to amend the terms of their Joint Development Agreement (JDA) dated June 7, 2024.

In a filing with Bursa Malaysia, Perak Corp stated that the gross development value for the project would be at least RM240 million.

"The joint development is part of the company’s ordinary business activities and does not require shareholders' approval. The revised terms provide clear payment milestones, financial flexibility, and predictable cash flows for Perak Corp," it said.

The company also noted that the agreement is not expected to have a material impact on its financials for the year ending Dec 31, 2025.

Additionally, if Perak Corp fails to exit Practice Note 17 (PN17) status or is delisted before securing the advertising permit and developer licence approval, Urbax has the option to purchase the land for RM48.62 million

The original JDA, signed on June 7, 2024, was for a housing project covering approximately 10.03 hectares in Hulu Kinta, Kinta, Perak.

Perak Corp owns the land, which consists of three lots, two of which are charged to CIMB Bank Bhd. Under the agreement, Perak Corp is entitled to RM52 million, comprising the land cost and 20 per cent of net sales, with a guaranteed minimum of RM52 million.

It noted that Urbax will be responsible for all development costs and securing the necessary financing.

The JDA, it said also outlines conditions precedent for both parties, including obtaining a land discharge from CIMB, conducting feasibility studies, and securing shareholder and regulatory approvals.

"The project is a key component of Perak Corp’s PN17 regularisation plan and is expected to enhance the company’s financial position. It is projected to positively impact earnings and net assets from 2024 onwards and is slated for completion by the end of 2031," it added.

-- BERNAMA