Ireka teams up with Penang State Islamic Religious Council to build houses in Seberang Perai

• Ireka said its wholly-owned subsidiary, Ireka Development Management Sdn Bhd), accepted a Letter of Award from WPPSB on Thursday (Nov 3) to jointly undertake the development of 131 units of double-storey terrace houses and 16 units of three-storey terrace houses on the 12.5-acre piece of land.

KUALA LUMPUR (Nov 3): Ireka Corp Bhd said it will jointly develop houses on a piece of land in Seberang Perai Tengah with Wakaf Pulau Pinang Sdn Bhd (WPPSB), a corporate representative of the Penang State Islamic Religious Council (MAINPP).

Ireka said its wholly-owned subsidiary, Ireka Development Management Sdn Bhd (IDMSB), accepted a Letter of Award from WPPSB on Thursday (Nov 3) to jointly undertake the development of 131 units of double-storey terrace houses and 16 units of three-storey terrace houses on the 12.5-acre piece of land.

Work on the project in Kuala Mengkuang, near Bukit Mertajam, will commence within one month from the date of approval of the building plan and the completion period will be within 24 months, the Practice Note 17 company said in a bourse filing. 

Ireka said that under a joint-venture agreememt between the parties, IDMSB will pay a refundable earnest deposit of RM787,700 to MAINPP, while a project management fee of RM1.36 million is to be paid to WPPSB. 

“Consideration to MAINPP will partly be ‘in kind’ in the form of 17 units of double-storey terrace houses valued at RM7.65 million and partly by cash amounting to RM197,000. In the event of any addition to the number of units and/or the selling price of the units of the project, MAINPP shall be entitled to receive a consideration from IDMSB  based on a sharing ratio of 50:50 proportion,” it added.

Ireka's share price settled unchanged at 48 sen, valuing the group at RM109 million. Year to date, the counter has fallen 37% from 76.5 sen on Dec 31, 2021.