KUALA LUMPUR, Nov 1 — Tropicana Corporation Bhd’s wholly-owned unit, Tropicana Senibong Sdn Bhd (TSSB), has formed an unincorporated joint venture (JV) with Puncak Alam Housing Sdn Bhd (PAHSB) to develop three parcels of leasehold land of approximately 146.80 hectares in Ijok, Selangor.

Under the JV agreement (JVA) signed between TSSB and the proprietor, PAHSB today, TSSB would undertake the property development project with the payment of the proprietor’s entitlement amounted to RM334.54 million.

"The proprietor’s entitlement shall be paid in progress manner up to 72 months from the date of the JVA,” Tropicana said in a filing with Bursa Malaysia today.

On the rationale of the exercise, Tropicana said the JV could provide an opportunity for the group to replenish its existing property development projects and also to enhance its property development profile in the Klang Valley.

It said the JV would also allow the group to participate in the development without an outright purchase of the land which will otherwise require significant cash outlay.

"Barring any unforeseen circumstances, the JV is expected to be completed upon full payment of the proprietor’s entitlement,” it said, adding that the corporate exercise is expected to be funded by TSSB via a combination of internally generated funds and/or bank borrowings.

Moving forward, Tropicana expected the JV to generate economic benefits and contribute positively to the group’s future earnings. — Bernama