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- Its unit Epicon Land Sdn Bhd has signed a conditional joint development agreement with NCT Alliance's wholly owned unit NCT Noble Sdn Bhd to undertake a project to develop 876 single-storey terraced homes on 72.14 acres in Mukim Batang Kali, located about 20km from Genting Highlands.
KUALA LUMPUR (Sept 30): Epicon Bhd (KL:EPICON) is diversifying into property development by investing RM72.13 million to form a joint venture with NCT Alliance Bhd (KL:NCT) to undertake a terraced home project in Batang Kali.
Its unit Epicon Land Sdn Bhd has signed a conditional joint development agreement with NCT Alliance's wholly owned unit NCT Noble Sdn Bhd to undertake a project to develop 876 single-storey terraced homes on 72.14 acres in Mukim Batang Kali, located about 20km from Genting Highlands, according to Epicon in a filing with Bursa Malaysia.
Under the agreement, NCT Noble will receive the landowner’s entitlement of up to RM72.13 million (comprising RM23.95 million in costs, plus an additional profit-sharing sum not exceeding RM48.18 million). This reflects a discount of RM1.87 million, or about 2.5%, to the land’s market value of RM74 million.
NCT Noble, which bought out an industrial park development firm from its major shareholders for RM490.26 million last month, submitted the development order for the Batang Kali terraced home project to the Hulu Selangor Municipal Council on Aug 28, which is pending approval, with building plans to follow.
The gross development value of the project is estimated at RM347.68 million, said Epicon, which will fund the project by internal funds and borrowings.
As at June 30, Epicon's cash balance was at RM10.42 million plus RM12.55 million of fixed deposits that were pledged to licensed banks. The company's total assets amounted to RM259.16 million, including trade receivables of RM140.5 million.
Epicon said the venture would broaden its earnings base beyond construction, with property potentially contributing 25% or more to future net profit and net assets.
In the filing on Tuesday, the group said it intends to start with smaller-scale projects before moving to larger developments.
“Additionally, the group may also explore joint ventures, partnerships, cooperation and/or strategic alliances with landowners and/or other property developers as and when the opportunity arises,” said Epicon.
Epicon’s largest shareholder is Doh Properties Sdn Bhd, the investment vehicle of the Doh family, with a 10.68% stake.
Aside from construction and the proposed property venture, Epicon—formerly Konsortium Transnasional Bhd—was previously in the express bus business before exiting in November 2023 as part of its regularisation plan.
Epicon shares slipped half a sen or 3.7% to 13 sen on Tuesday, giving the company a market capitalisation of RM81.57 million. NCT Alliance fell one sen or 2.02% to 48.5 sen, valuing the group at RM936.83 million.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
