KUALA LUMPUR: Main market listed DPS Resources Bhd (DPS), through its wholly-owned subsidiary DPS Energy Sdn Bhd (DPSE), signed a joint venture (JV) agreement with Mutiara Mahajuta Sdn Bhd (MMSB) to potentially develop 190.09-acre land in Alor Gajah, Melaka.
This collaboration involves a pioneering project encompassing agro-tourism, crops, bio-farms, renewable energy, solar farms, and aquaponics.
The land, boasting an agriculture land use category, is poised to become a cornerstone of sustainable development in the region.
The JV is a significant component of DPS Resources' strategy to enhance the value of its accumulated landbanks.
A filing with Bursa Malaysia shows that under the structure of this JV, DPS Resources will take charge of the project management and allocate net profits at a ratio of 65 per cent for DPSE and 35 per cent for MMSB.
The latter will then redistribute its share to the individual landowners.
Since the pandemic, DPS Resources has strategically expanded its portfolio, amassing more than 1,000 acres through various means, including joint ventures and acquisitions.
DPS Resources executive chairman Tan Sri Sow Chin Chuan said the collaboration with MMSB is part of the company's broader strategy to make the most of its large landbank.
"These landbanks with more than 1,000 acres can cater for different property development and sustainable-focused projects like agro-tourism, bio-farms, and renewable energy initiatives, including solar farms.
"We aim to tap into the potential of these lands, which we project to have a gross development value of around RM6 billion.
"We are also negotiating to secure the neighbouring and adjacent lands surrounding our projects, which will expand our landbank," he said in a statement.
DPSE is principally engaged in the business of green energy and engineering services.
"We are engaged in discussions with prospective investors and partners for their expertise in green energy and engineering services.
"Our collaboration is designed to maximise the potential of their lands, ensuring that our partners can fully leverage their resources.
This initiative demonstrates our commitment to creating synergies through diverse partnerships, which lays the groundwork for sustainable growth and community development.
"This commitment to sustainability and community betterment is evident in the financial framework of our collaborations," Sow said.
He believes this project will significantly boost the company's future earnings and financial resilience.
It is also poised to contribute substantially to the national green energy market and achieve environmental, social, and governance objectives.
The project's strategic location is advantageous, offering easy access to major highways and towns. Furthermore, sunlight exposure and the availability of tapping points make it an ideal site for establishing a solar farm.
DPS Resources continued emphasis on collaborative efforts and partnerships underscores its dedication to realising a vision of sustainable development.
The company remains steadfast in its pledge to positively impact Malaysia's green energy market and uphold its environmental, social, and governance (ESG) commitments.