KUALA LUMPUR (Dec 21): The Kedah government’s investment holding company, Bina Darulaman Bhd (BDB), has entered into a joint venture agreement (JVA) with OIB Properties (KV) Sdn Bhd to develop 782 affordable single-storey terrace homes in Kubang PasuKedah.

BDB, as the land owner, will provide development rights to OIB to build the affordable housing scheme on a plot measuring 53.75 acres in the Darulaman Saujana township, said BDB in a bourse filing on Thursday. OIB will bear the development costs.

In return, BDB will be entitled to a revenue share of 25% or RM46.92 million based on the residential project’s gross development value (GDV) of RM187.68 million.

At the same time, BDB will receive an owner’s entitlement of up to RM28.22 million until the fifth year from the JVA’s effective date (Dec 21). The project is expected to be completed within 72 months.

BDB said the JVA will increase the group’s net assets by two sen per share to RM1.58 per share, based on its audited financial statements as at Dec 31, 2022.

The JVA is also expected to realise an estimated after-tax gain of about RM7.6 million to BDB, which will improve the group’s consolidated earnings per share by three sen for the financial year ending Dec 31, 2023 (FY2023).

For FY2022, BDB recorded a net profit of RM5.6 million, on a revenue of RM231.37 million.

For the nine months ended Sept 30, 2023 (9MFY2023), BDB widened its net loss to RM5.94 million from RM3.75 million in 9MFY2022, due to lower net contributions from its property and engineering, and construction and quarry divisions. This was despite revenue rising 31% to RM182 million from RM138.93 million.

Shares in BDB finished half a sen or 1.82% higher at 28 sen on Thursday, valuing the group at RM83.56 million.

https://www.edgeprop.my/content/1908038/bina-darulaman-ropes-partner-build-782-affordable-homes-darulaman-saujana-township?fbclid=IwAR3fedG0DUjke0GZSIEBd02yJSB_wDXuqLQoJ1jAtl9YxcyxOAoxyhjAzvI

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