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- Privasia said the project will now be spearheaded by its subsidiary, Silver Streams Technofarm Sdn Bhd. The subsidiary will be responsible for all aspects of the project, including funding, feasibility studies, design, construction, operations and the land lease with Felcra Bhd.
KUALA LUMPUR (Nov 12): Digital and outsourcing solutions provider Privasia Technology Bhd (KL:PRIVA) said on Wednesday that it will independently lead the development of a planned data centre project in Bagan Datuk, Perak.
This marks a change from its earlier intention to undertake the project through a joint venture with Mara Inc, the strategic investment arm of government agency Mara.
In a filing with Bursa Malaysia, Privasia said the project will now be spearheaded by its subsidiary, Silver Streams Technofarm Sdn Bhd. The subsidiary will be responsible for all aspects of the project, including funding, feasibility studies, design, construction, operations and the land lease with Felcra Bhd.
While the initial joint venture has been replaced, Mara Inc will continue to support the project by facilitating "government relations, regulatory approvals, utilities, land matters" and assisting in the onboarding of government-linked clients, said Privasia.
A project steering committee will be formed to oversee governance and coordination, the company said, adding that "a profit distribution of 10% will be made annually". The collaboration is valid for 30 years, with an option to extend upon mutual consent.
In the filing, Privasia also said that it has signed a 30-year land lease agreement with Felcra, relating to the site for the development of the data centre, with the option to renew for another 30 years.
The lease payments comprise a first-year commitment fee of RM150,000, annual rentals of RM303,000 for the second and third years, and annual rentals between RM606,000 and RM1.5 million from the fourth year onwards. The rental will be subjected to a review every five years with a minimum increase of 5%.
Shares of Privasia rose half a sen or 6.67% to eight sen at market close on Wednesday, valuing the company at RM50.66 million. Year to date, the counter has declined more than 33%.
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