KUALA LUMPUR (Jan 30): Ark Resources Holdings Bhd has entered into a joint venture agreement to develop a piece of land in Balik Pulau, Penang.

The group said that it signed the agreement with Koperasi Kampung Melayu Balik Pulau Bhd (KKMBPB) to develop the latter’s  89.89 acres of land into a mixed-use development with a minimum gross development value of RM600 million.

The members of KKMBPB comprise mainly legal owners of land in Kampung Melayu Balik Pulau, Ark Resources said in a filing with Bursa Malaysia.

Under the deal, Ark Resources is to purchase the land from KKMBPB for RM120 million and hold the land for 99 years from the date of approval from local authorities, and also to develop the land.

The group, in a filing to Bursa Malaysia, said the deal is expected to enhance its core property development business and is in line with its strategy of seeking more strategic land and expand its existing land bank.

Ark Resources said it plans to develop three lots of land with two two-storey retail shop blocks, a bazaar, 276 double-storey terrace houses, 214 double-storey semi-detached houses, 91 double-storey bungalows, two 16-storey condominium blocks, two 16-storey low cost apartment blocks, an open space, a school, a mosque, a community hall, a main distribution substation and  sewage treatment plant.

Shares in Ark Resources were untraded today. The stock was last traded at 38 sen, giving it a market capitalisation of RM18.5 million.