The Board of Directors of Encorp Berhad announced that it had on 22 March 2022 signed a Joint Venture Agreement ("JV Agreement") with FELDA to jointly complete the development of the Project on the land belonging to FELDA held under H.S.(D) No. 10717, P.T. No. 398, Mukim of Padang Siding, District of Perlis, in the State of Perlis Indera Kayangan ("The Land").

The Project comprise of Phase 1 and 2 composed of the following: FELDA has partially developed Phase 1 of the Project with the development and construction of 158 units of low cost houses, 66 units of medium cost houses and 17 units of shop houses. Such development and construction has been deferred and FELDA is now desirous to rehabilitate and complete the development of Phase 1 of the Project. ENCORP has nominated Encorp Development Sdn.

Bhd. ("EDSB"), a wholly-owned subsidiary of ENCORP as the holder of the development licence and any obligation on the part of ENCORP under the JV Agreement. In consideration of FELDA providing the Land to be developed by ENCORP, FELDA and ENCORP agree to share the profit from the Project based on the ratio of eighty per centum (80%) for FELDA and twenty per centum (20%) for ENCORP for Phase 1 of the Project and seventy-five per centum (75%) for FELDA and twenty-five per centum (25%) for ENCORP for Phase 2 of the Project.

The total estimated gross development profit for the Phase 1 and 2 is RM31 million and the profit will be distributed based on the ratio of the profit sharing as shown below: The profit sharing ratio was arrived at on a willing-buyer and willing-seller basis and after taking into account, amongst others, the following:- (1) Encorp does not need to bear any land cost as the Land is provided by Felda without requirement to pay any land cost; (2) Distribution of profit sharing takes place after vacant possession of the units have been delivered to the purchasers; and (3) Encorp's findings based on the market study the properties surrounding the Land. ENCORP undertakes and agrees not to charge or encumber or cause the Land to be assigned, pledged, charged or encumbered to any bank, financial institution or parties whatsoever save and except for end-financing purposes in respect of loans to be obtained by purchasers of any of the buildings within the Project.