D’nonce Technology Bhd and OCR Group Bhd are teaming up to develop affordable apartments in Seberang Perai Tengah, Penang, said the latter in a bourse filing today.

OCR’s unit Fajar Simfoni Sdn Bhd (FSSB) has entered into a joint venture with D’nonce’s wholly-owned unit D’nonce Properties Sdn Bhd (DPSB) to develop a 19-storey block housing 281 units of flats and a seven-storey car park podium on 6,774 sq m of land belonging to Tan Than Kau and Tan Tiang Yang.

The project will have a gross development value (GDV) of RM85 million.

Under the agreement, FSSB will build and develop the land into the apartment block at its own cost, while DPSB will deliver the site possession to FSSB.

In total FSSB is to pay DPSB a total of RM12.1 million as part of the agreed returns of the deal.

FSSB is solely entitled to the relevant revenue from the project or sale of apartment units, and its expected profit entitlement is RM10 million.

OCR said the JV presents an opportunity to further capitalise on property development experience and grow its property development segment through direct land acquisitions or ventures with landowners.

OCR non-independent and non-executive director Lim Tech Seng is also an executive director of D’nonce Technology Bhd with a direct interest of 1.046%, as well as a director of DPSB.

OCR closed 1.52% or half a sen higher to 33.5 sen — with 2.61 million shares traded — giving it a market capitalisation of RM108 million.

Meanwhile, shares in D’nonce Technology traded 7.14% or three sen higher at 45 sen — with 233,000 shares changing hands — giving it a market capitalisation of RM113.3 million.

Source: EdgeProp.my