KUALA LUMPUR (Nov 16): Main Market-listed DPS Resources Bhd (DPS) has entered into a joint venture agreement (JVA) with Mutiara Mahajuta Sdn Bhd (MMSB) to undertake agro, agro-tourism and potentially solar farm projects in Melaka.

The JVA involves a piece of land measuring 190.09 acres in the Mukim of Bukit Apit II, Alor Gajah, which has been granted by the landowners to MMSB.

In its filing, DPS said MMSB has entered into collaborative agreements with the individual landowners to develop the land across two phases over a 30-year period, with an option for a 15-year extension.

Under phase one, MMSB is granted the right to cultivate oil palm and plant rubber trees, fruit trees, high quality forest trees with higher yields, and any other farms or crops that are suitable. Under phase two, MMSB is granted the right to undertake a mixed development, DPS said.

DPS and MMSB’s collaboration involves a pioneering project that includes agro-tourism, crops, bio-farms, renewable energy, solar farms and aqua-phonics, it added.

MMSB is providing the land in the JV while DPS will oversee project management, with net profit allocated at a ratio of 65% for DPS and 35% for MMSB.

MMSB will then redistribute its share to the individual landowners, DPS said.

DPS will also be responsible to conduct a study to gauge the feasibility of solar farm projects there.

The agricultural-use land, DPS said in a statement, has easy access to major highways and towns, as well as excellent sunlight exposure to make it an ideal site for establishing a solar farm.

DPS executive chairman Tan Sri Sow Chin Chuan said the company is engaged in discussions with prospective investors and partners known for their expertise in green energy and engineering services.

He cited the Corporate Green Power Programme (CCGP), which allows renewable energy players to build capacity and sell the energy generated to various off-takers.

“This initiative demonstrates our commitment to creating synergies through diverse partnerships, which lays the groundwork for sustainable growth and community development.

"This commitment to sustainability and community betterment is evident in the financial framework of our collaborations,” he added.

At noon market break, DPS shares traded half a sen or 0.84% lower to 59 sen, translating into a market capitalisation of RM 122.73 million.