(March 11): Perak Corporation Bhd said on Monday it has signed a development agreement to move forward with a housing project that will help rescue the financially-troubled state-owned real estate developer.

Development of the Teluk Dalam land, measuring 56.31 acres (22.78 hectare), involves a gated housing scheme with bungalow, semi-detached houses and terraced houses, Perak Corp said in an exchange filing. The project will be developed over four phases to be completed by 2032, the PN17 company said.

The joint development agreement is part of an effort of its parent company Perbadanan Kemajuan Negeri Perak (PKNPk) to provide “an avenue for Perak Corp to generate sustainable and recurring income” to boost its cash flow and strengthen its financial position as part of its regularisation plan, it said.

Details on the project such as gross development value and estimated costs were not provided in the disclosure.

Perak Corp slipped into PN17 status in February 2020 after defaulting on a payment and was unable to declare solvency. In August 2022, the company signed a Memorandum of Understanding with PKNPk to develop the land as part of its regularisation plan .

PKNPk is willing to forgo any share of revenue in relation to the sales proceeds other than the reimbursement of expenses incurred by PKNPk for the development and sale of the completed end-products of the development, Perak Corp said.

Perak Corp and PKNPk have also signed a joint venture agreement with Uni-Poh Construction Works Sdn Bhd to jointly undertake the development and to market the houses, it added.

Shares of the Perak Corp were untraded at midday trading break on Monday with a last done price of RM0.445. 

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