PETALING JAYA: Ewein Bhd has entered into a joint venture (JV) agreement with Consortium Zenith Sdn Bhd (CZC) for a RM159.75 million development on 4.43-acre freehold land in Bandar Tanjong Pinang, Penang.
In a Bursa filing, Ewein said the agreement was entered on November 30, 2019 by its affiliate Ewein Zenith II Sdn Bhd, a wholly owned subsidiary of Ewein Zenith Sdn Bhd (EZ), which in turn a 89% owned subsidiary of Ewein Land Sdn Bhd to undertake the development.
Ewein said the JV allows the group to leverage on the CZC’s experience and expertise in property construction which will facilitate a successful execution of the development.
The proposed development will be the second project jointly undertaken by both parties, as the two are currently involved in the development of a luxury sea-front property development project, City of Dreams in Bandar Tanjong Pinang, which is in the completion stage.
‘With the strategic location of the said land, the group’s board envisages the development potential of the said land to be favourable and in line with the group’s long term strategic plan to enhance the group’s property development business” Ewein noted.
It expects the project to contribute positively to its financial position and in turn deliver greater value to its shareholders. The proposed JV is expected to be completed within 24 months from the date of agreement.
Ewein said the proposed JV will be funded via internally generated funds and/or bank borrowings.