KUALA LUMPUR (July 24): SC Estate Builder Bhd (KL:SCBUILD) is forming a consortium to bid for projects with a total capacity of 2,000 megawatts (MW) under the fifth large-scale solar programme (LSS5).

SC Estate has signed a joint venture agreement with Anjung Meriah Sdn Bhd, a 100% Bumiputera firm involved in the engineering, procurement, construction and commissioning of solar renewable energy projects, the company said in an exchange filing.

Under the agreement, SC Estate will hold a 40% stake, while Anjung Meriah will have a 60% stake. The agreement is deemed a related party transaction, as Kuay Jeaneve is deputy chairman at SC Estate and also a director and shareholder — with a 97.18% stake — in Anjung Meriah.

She is the spouse of Loh Boon Ginn, who is SC Estate’s chairman and managing director. Loh has a 21.75% stake in SC Estate.

“The JV is expected to contribute positively to the company’s future earnings, earnings per share and enhance the consolidated net assets of the company,” SC Estate said.

In a separate filing, the company also signed a collaboration agreement with Anjung Meriah and property developers RMM Maju Malaysia Sdn Bhd and Visi Sempena Sdn Bhd to develop affordable houses in Kota Setar, Kedah, with a gross development value of RM252 million.

The project will be developed in phases on land measuring over 7,300 square metres.

The development is in line with its strategies and environmental, social and governance initiative to build 2,000 MW to 3,000 MW of solar power plants for “multiple effect solutions on climate change,” SC Estate said.

The target is to build 2,000 to 3,000 units of affordable houses with solar power on the roofs, two-metre wide walkway and bicycle lanes with internet connectivity, it said. The total gross development cost for the project is RM210 million.

Meanwhile, SC Estate as the landowner will receive land consideration of RM20.76 million under the collaboration agreement.

SC Estate has been facing consecutive losses since 2021. For the 15-month period ended April 30, 2024, the group reported a net loss of RM2.95 million on revenue of RM5.67 million.

Shares of SC Estate doubled to two sen from one sen on Wednesday's close, giving it a market value of RM81.85 million.