KUALA LUMPUR (March 31): Talam Transform Bhd’s wholly-owned Europlus Bhd has inked a joint venture (JV) agreement with Janajaya Murni Sdn Bhd (JMSB) to jointly develop two parcels of land owned by Europlus in Serendah, Selangor, into a residential project with a combined gross development value of RM388.23 million.

Under the JV, Europlus is entitled to get RM62.11 million in return for granting JMSB the exclusive right to build homes on the plots — comprising 411 units of double-storey terrace houses on one of the plots (Land 1 measuring 11.3ha), and 710 units of double-storey terrace houses on the other plot (Land 2, measuring 20ha).

The development on Land 1 will have an estimated gross development value (GDV) of RM140.71 million, while Land 2 will have a GDV of RM247.52 million.

“The proposed joint venture is expected to generate an estimated cash inflow of approximately RM62.11 million which will enable Talam to significantly improve its liquidity position for the working capital of the group’s property development projects and reduce the group’s debts,” it said.

Net proceeds from Europlus’ JV entitlement will be used to pare down the group’s liabilities and balance as working capital for the group’s property development projects, it added.

Talam’s share price closed unchanged at two sen, for a market capitalisation of RM86 million.