KUALA LUMPUR (Feb 8): Spritzer Bhd, the country's largest bottled water manufacturer, has entered a joint-venture (JV) agreement to develop a residential housing project in Perak's Larut Matang district, where the group is based.

In a bourse filing on Thursday, Spritzer said the JV with construction firm KNP Development Sdn Bhd presents a good opportunity for the group to establish a foothold in the property development industry.

Under the deal, Spritzer will bear the cost and expenses to build houses on a 5.78-acre (2.34-hectare) piece of land provided by KNP. The estimated cost was not mentioned in the filing.

KNP will be entitled to 15% of the sale proceeds. The entitlement will be paid based on the actual collection of progressive claims from the end purchasers on a monthly basis.

Spritzer, on the other hand, will be entitled to the rest of the sale proceeds. It is set to be the absolute beneficial owner of the land upon the complete satisfaction of KNP's entitlement.

Spritzer said the JV will not have any material effect on its net assets, earnings, gearing, and shareholding structure for the financial year ending Dec 31, 2024 (FY2024).

The group saw its quarterly net profit rise 48.5% to a record high of RM16.97 million for the third quarter ended Sept 30, 2023 (3QFY2023), up from RM11.43 million for 3QFY2022. Net profit for the cumulative nine months, meanwhile, increased 41% to RM36.27 million, from RM25.7 million for the previous corresponding period.

Spritzer shares closed unchanged at RM2.13 on Thursday, giving the group a market capitalisation of RM680.14 million.