Ireka Corporation Berhad will develop double-storey terrace houses in Penang in partnership with Wakaf Pulau Pinang Sdn Bhd (WPPSB).
On November 3, 2022, WPPSB, a representative of Majlis Agama Islam Negeri Pulau Pinang (MAINPP), presented IDMSB with a Letter of Award (LoA) for the collaborative development of about 12.53 acres of land in Seberang Perai Tengah.
The LoA requires IDMSB to build 147 units of double- and triple-storey terrace homes, each with a land size ranging from 1,973 to 2,474 square feet.
WPPSB would appoint IDMSB as a co-developer for the project through a newly formed joint venture firm, Ireka stated in a filing to the stock exchange.
In return, WPPSB shall receive a project management fee of RM1.355 million, by way of progressive payments.
"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 RM197,000.00," Ireka said in the filing.
WPPSB is a corporate representative of MAINPP, established in 2018 to generate economic community through the development of wakaf property. It plays a pivotal role in promoting, encouraging, facilitating and working towards the economic and social development as well as the well-being of Muslims in the State of Penang based on Syariah law.
According to Ireka, the project is anticipated to start within a month after the building plan has been approved, and be completed within two years.
The company said in a joint venture agreement (JVA) between the two parties will be executed within three months from the date of the LoA.
It said that IDMSB must give MAINPP a refundable earnest deposit of RM784,700 after the JVA has been signed.
"The board is of the opinion that the acceptance of the LOA and the subsequent execution of the project is expected to contribute positively to the net assets and earnings per share of Ireka and its group of companies for the financial year ending June 30, 2023, and onwards until the completion of the project," Ireka said.