Lii Hen ... Sept09

Its 80%-owned PPL Plantations Sdn Bhd (PPLP) has entered into a sub-development agreement with PIJ Holdings Sdn Bhd (PIJH) to develop a land in Mersing.

The 8,581-acre land was to be planted with rubber trees for the production of latex and rubber wood for sale to the related downstream industry.

The development on the plantable area in the land would be carried out within two months of the period approved by the state technical committee from the extraction of timber from the plot.

Under the sub-development agreement, PIJH shall grant PPLP the first right of refusal to be appointed as the turnkey contractor to undertake the clearance and sale of the existing timber, other plants and crops in the plantable area.

The development would be funded by existing cash reserves and bank borrowings

PIJH, formerly known as Perisind Holdings Sdn Bhd, is wholly owned by Perbadanan Islam Johor. PIJ is entrusted by the Johor state government to oversee and facilitate the development of land, the growth in agriculture, housing, mining activities or any other activities with the objectives of improving the economic status of all Muslims residing in the state.

PIJ entered into a right of use agreement with the state government in April this year for the rights to develop about 15,000 acres of forest land with rubber trees to be planted for the production of latex and later the sale of rubber wood for a period of thirty years, with an option to extend such development for a further 30 years.
Subsequently, PIJ awarded the development rights to PIJH under a master development agreement in July 2009.