Perak Corp partners private firm for mixed development project

• The Practice Note 17 (PN17) company, whose largest shareholder is the Perak State Development Corp with a 52.9% stake, said in a bourse filing that it entered into a collaboration agreement on Friday to develop the project jointly with a private firm, Spectrum Asets Sdn Bhd.

KUALA LUMPUR (Feb 7): Perak Corp Bhd (KL:PRKCORP) has proposed to undertake a mixed development project on 54.8 acres of land owned by the company in Hulu Kinta, Perak.

The Practice Note 17 (PN17) company, whose largest shareholder is the Perak State Development Corp with a 52.9% stake, said in a bourse filing that it entered into a collaboration agreement on Friday to develop the project jointly with a private firm, Spectrum Asets Sdn Bhd.

Under the agreement, Perak Corp will provide the land for the development while Spectrum Asets will be the project’s developer.

No further details of the proposed mixed development project were disclosed in the filing.

Spectrum Asets’ shareholders are Datuk Wira Mubarak Hussain Akhtar Husin with an 80% stake and Datuk Lai Keng Onn with 20%, according to Perak Corp.

Both Mubarak Hussain and Lai sit on the boards of electrical and mechanical engineering firm Kinergy Advancement Bhd (KL:KAB) and offshore support vessel operator EA Technique (M) Bhd (KL:EATECH).

Lai is KAB's executive deputy chairman cum group managing director and single-largest shareholder with a 28.77% stake.

Perak Corp said the two parties will ink a joint venture agreement later to formalise the collaboration, with a special purpose vehicle to be set up in which Perak Corp will hold a 20% stake and Spectrum Asets the remaining 80%.

“The collaboration agreement provides an opportunity for Perak Corp to unlock the potential value of its land assets, through a strategic partnership with Spectrum Asets,” Perak Corp said.

“This collaboration combines the resources, expertise, and financing capabilities of both parties to facilitate the implementation and execution of the proposed joint development, enhancing the value of the land and creating a sustainable revenue stream for Perak Corp,” it added.

Perak Corp has been deemed a PN17 company since February 2020, after a default in payment on financing facilities and its inability to declare solvency.

On Friday, the company applied for a six-month extension of time to move the deadline to submit its regularisation plan to Aug 9, from the current Feb 9 cut-off point.

In terms of financial performance, Perak Corp’s net profit for the nine months ended Sept 30, 2024 (9MFY2024) stood higher at RM354,000 versus RM299,000 in the same period a year earlier, with revenue down 4.3% to RM114.01 million from RM119.17 million.

Cash stood at RM16.09 million with total borrowings of RM120.96 million as at end-September last year.

Shares in Perak Corp closed unchanged at 39.5 sen, valuing the company at RM39.5 million.

EdgeProp.my is currently on the lookout for writers and contributors to join our team. Please feel free to send your CV to [email protected] 

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!