Spritzer Bhd’s unit, Spritzer Development Sdn Bhd (SDev), today signed a joint venture agreement with landowner KNP Development Sdn Bhd to jointly develop residential houses in Larut Matang, Perak at the former’s own costs.
In a Bursa filing today (Feb 8), the group said under the agreement, its property developer unit SDev will develop a piece of land measuring 23,788 sq m (5.78 acres) into a housing development project to build residential houses, subject to the terms of the agreement.
Under the agreement, it said that KPN, as the landowner, will get a 15% cut of the sale proceeds of the houses sold and received over RM278,000 as a non-refundable deposit from SDev, among others terms.
“SDev shall pay RM2.2 million as advanced payment to KPN within 3 months from the date of JVA to to defray some of its expenses including paying the premium to the Perak Land Registry (Perak Land and Mines Office).
“Meanwhile, SDec will be entitled to the rest of the sale proceeds of the sold and unsold houses built under the project. Upon the full satisfaction of the landowner’s entitlement, SDev shall be the absolute beneficial owner of the land or any part of the land,” the group said.
After the entitlement has been satisfied KPN will be a bare trustee in favour of the developer, SDev, it added.
Spritzer said the joint venture not only presents a good opportunity for SDev to establish a foothold in the property development industry.
“It will also provide a distinct advantage in navigating the complexities inherent to the industry,” it said.
The group added the JVA will not have any material effect on the net assets, earnings, gearing, shareholding structure and substantial shareholders’ shareholdings of the group for the financial year ending 31 December 2024.
SDev, wholly-owned subsidiary of the group, is a fairly new property developer, and was incorporated in Malaysia in 2021 as a private limited company while KNP is involved in real estate and billboard advertising.
