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KUALA LUMPUR (Nov 18): Property developer Encorp Bhd stands to receive A$6 million (RM18.7 million) under its joint venture (JV), which will help the company recover its land cost in Perth.
In statements Bursa Malaysia, Encorp said it had paid A$6 million for the 11,000 sq m (1.1 ha) land in May 2012. The tract to be jointly developed with Tew Investments Pty Ltd is located at Tea Tree Close within Cockburn Central.
Encorp is undertaking the JV via wholly-owned subsidiary Encorp Development Pty Ltd (EDPL). The JV aims to develop the land into a commercial and residential development.
"Further to our reply to Bursa, we wish to inform that the total consideration of A$6 million (comprising land value of A$3.6 million and minimum return of A$2.4 million) in respect of the joint venture, will allow the company to recover its original cost of investment as well as to allow EDPL to participate in the share of development profit from the project, when it is completed.
"The total consideration of A$6 million in respect of the joint venture is above the net book value of A$4.8 million as at Dec 31, 2014," Encorp said.
At 4.29pm, Encorp shares fell six sen or 7% to 80 sen for a market capitalisation of RM222.6 million. The stock saw 4,100 shares traded. -- theedgemarkets.com
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