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KUALA LUMPUR: Ageson Bhd
Ageson Holdings Sdn Bhd, owned 75%, has partnered with Menteri Besar Inc (Perak) to develop some 475 acres of land in Batang Padang, Perak.
In a presentation to Bursa Malaysia on Monday, he said that he had signed a development rights agreement (DRA) with MBI Perak because mixed development has a gross development value of RM1.24bil.
It will include government agencies and administrative units, industrial, commercial and residential development.
Under the agreement, Ageson Holdings said MBI Perak will be entitled to 20% of the total GDV or RM72mil, whichever is greater.
With an estimated gross development cost of RM879.9 million, the project is expected to be completed in about 15 years when it starts in the first quarter of 2022
“The DRA grants us development rights to these approximately 475 acres of land without overburdening the existing cash flow for the group.
“It will not only give us visibility into earnings for years to come, but it will also expand our revenue base through the development of custom industrial spaces.
“We are capitalizing on the strong demand for industrial properties,” Ageson CEO Datuk Seri Chin Kok Foong said.
The group is evaluating various options for developing the land, including finding joint venture partners or developing the land on its own.
According to Chin, the group aims to derive a significant portion of its earnings from its income stream by 2022.
It will be driven by its expertise in cost-effective building technology, such as building information modeling in the proposed development, he added.
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