LFE Corp teams up with landowner to jointly develop housing project in Kedah

• In a bourse filing, the group said its 60%-owned subsidiary LFE Development Sdn Bhd (LDSB) inked the joint venture agreement (JVA) with the owner of the land, Aziho Trading Sdn Bhd (ATSB), for the development of the project known as Taman Residensi Mesra Phase Four.

KUALA LUMPUR (Aug 16): LFE Corp Bhd's unit signed a deal on Wednesday (Aug 16) to jointly develop a housing project on 175 hecatres land in Gurun, Kedah.

In a bourse filing, the group said its 60%-owned subsidiary LFE Development Sdn Bhd (LDSB) inked the joint venture agreement (JVA) with the owner of the land, Aziho Trading Sdn Bhd (ATSB), for the development of the project known as Taman Residensi Mesra Phase Four.

The remaining 40% stake in ATSB is held by Patrick Heng Jin Wei, a director of the company.

Under the JVA, the landowner is entitled to 18% of the total number of units of low-cost and low medium-cost houses, and also 20% of the gross development value or 20% of the building plots together with the various type of buildings constructed there.

LDSB, on its part, will complete the houses within two years from the date of the commencement of construction works and will be responsible for all costs and expenses for approval for development and construction costs.

LFE said the JVA is expected to contribute positively to the group’s earnings and net assets for the financial year ending Dec 31, 2024 and up to expiry of the completion of the project. 

Shares in LFE Corp closed up one sen or 6.25% at 17 sen, giving the group a market capitalisation of RM188 million.

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