Hatten Land enters JV to manage solar panel facilities in Malaysia

HATTEN Land PH0 : PH0 0% is forming a joint venture (JV) with Bursa-listed Nestcon to secure, supply, construct, develop and manage solar panel facilities in Malaysia, it said in a bourse filing on Wednesday (Nov 10).

Under the JV agreement, the companies will pursue renewable energy activities, including the installation of over 6,000 solar panels on the roof of Melaka's largest mall Dataran Pahlawan Melaka Megamall, managed by Hatten Group.

The agreement is part of Hatten Land's strategic pivot to repurpose its malls in Malaysia for digital and blockchain activities, including cryptocurrency mining enabled by renewable energy.

The JV company will be 30 per cent owned by Hatten Land's wholly-owned subsidiary Hatten Renewable Energy and 70 per cent owned by Nestcon's wholly-owned subsidiary Nestcon Sustainable Solutions and/or its nominees.

Its first project to develop and install solar panels on Dataran Pahlawan Melaka Megamall, slated to be completed in 2022, will generate around 3,900 megawatt-hours per year, the equivalent of powering more than 1,100 3-room flats for an entire year.

The JV company will manage the rooftop project for 21 years. Meanwhile, it will also collaborate with other potential partners to jointly secure, supply, construct and manage large-scale solar photovoltaic facilities, targeting 100 megawatts-peak, in Malaysia.

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In recent months, Hatten Land has announced various plans - including installing crypto mining rigs at its malls, creating a metaverse digital twin of Melaka and developing a cryptocurrency exchange - in its bid to align its business model with the growth trends of the digital economy.

It noted that the JV will allow the group to reduce its net carbon footprint, enhance green cryptocurrency mining capacity, lower energy costs and improve business synergies among its operations.

Hatten Land executive chairman and managing director Colin Tan expects the JV will create new business opportunities and synergies towards emerging environmental, social and governance trends.

Hatten Land does not expect the JV agreement to have any material effect on the group's net assets, gearing, earnings and earnings per share for the financial year ending Jun 30, 2022. However, it said the solar panel installation works will likely contribute positively to the future financial performance of the group.

Shares of Hatten Land closed at S$0.062 on Tuesday (Nov 9), down S$0.001 or 1.6 per cent.

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