KUALA LUMPUR (March 28): Tile manufacturer cum property developer Seacera Group Bhd is partnering Ikhlas Al Dain Sdn Bhd, the indirect wholly owned unit of Mlabs Systems Bhd, to develop holiday villas in Kemaman, Terengganu that will have an estimated gross development value (GDV) of RM156.46 million.

In a bourse filing, Seacera said it on Friday (March 25) entered into a joint venture (JV) agreement with Ikhlas via its wholly-owned subsidiary, Seacera Builders Sdn Bhd (SBSB). Ikhlas was in August last year granted sole, exclusive rights by Ribuan Bakat Sdn Bhd to develop several plots of freehold Malay Reserve Land totalling 30.17 acres that Ribuan Bakat owns.

Under the JV agreement, SBSB will pay RM11.5 million to Ikhlas in the form of units developed on the plots to secure the plots’ development rights.

Seacera, a Practice Note 17 (PN17) company, said it may obtain financing from any reputable financier for the purpose of financing the development of the project after obtaining approvals from Ikhlas and Ribuan Bakat.

Datuk Seri Abdul Azim Mohd Zabidi, a director of both SBSB and Ikhlas, has abstained himself from any deliberation and decision-making involving the deal, the filing wrote.

The tile manufacturer said the JV represents an opportunity for it to further expand its revenue from property development.

Seacera fell into PN17 status in April 2019 after defaulting on a payment of principal and profits to AmBank Islamic Bhd. It owed AmBank RM22.15 million at the time.

Last year in December, Seacera was given five months until April 25 this year to submit its plan to Bursa Malaysia Securities Bhd to regularise its financial condition.

At market close on Friday, Seacera shares were unchanged at 18.5 sen apiece, valuing the property developer at RM112.07 million.

Source: EdgeProp, March 28, 2022