Acme Holdings Bhd and Koperasi Kampung Melayu Balik Pulau Bhd (KKMBPB) will jointly create a multi-phased integrated complex on 178.34 acres of land in Penang.

In a filing with the stock exchange on November 7, the manufacturing and property development company said that the land’s estimated minimum gross development value (GDV) is RM1.4 billion.

Acme said that its wholly-owned subsidiary Ayana Bayu Sdn Bhd (ABSB) and KKMBPB had engaged in a joint venture agreement (JVA) for the land development.

Under the JVA, the development will be on a sharing basis of 83:17 between ABSB and KKMBPB, respectively.

The land, which is owned by KKMBPB, will be developed by ABSB.

According to Acme, the JVA will make it possible for the company and its subsidiaries to carry out the aforementioned growth close to Penang.

“The developer hereby guarantees that the landowner’s entitlement shall be equivalent in value to the minimum sum of RM210 million only. The landowner’s entitlement may be higher in the event the GDV of the said development on the said land is higher than projected under the JVA,” said Acme.

The developer agreed to pay KKMBPB RM1 million annually as compensation for the loss of income/profit from oil palm cultivation upon turning over vacant possession of the aforementioned land to ABSB, it added.

Acme stated that ABSB also agreed to pay an amount of RM2.5 million upon execution of the JVA.

Source: New Straits Times, 8 November 2022.