KUALA LUMPUR – Ageson Bhd’s 75%-owned subsidiary, Ageson Holdings Sdn Bhd (AHSB), has entered into a development rights agreement (DRA) with Perak Menteri Besar Incorporated or MBI Perak to develop 192.23ha of land in Batang Padang, Perak into a mixed development project with a gross development value (GDV) of about RM1.24 billion.
In a filing with Bursa Malaysia today, Ageson said the proposed project comprised government agencies and administration units, industrial, commercial, and residential developments.
The proposed development, which has an estimated gross development cost of RM879.9 million, was expected to commence in the first quarter of 2022 and is expected to be completed in 15 years from the commencement date, it added.
Under the agreement, Ageson said AHSB will pay MBI Perak an entitlement equivalent to 20% of the total GDV or RM72 million, whichever is higher.
In a separate statement, Ageson executive director Datuk Seri Chin Kok Foong said the DRA provided the company development rights to the 192.23ha land without burdening the existing cash flow of the group.
“It will not only provide us earnings visibility for the next few years but also expand our income base through the development of build-to-suit industrial space. We are capitalising on the strong demand for industrial properties,” he said.
As the master developer of the proposed development, Ageson is assessing various options to develop the land, including looking for joint-venture partners and/or developing the land on its own gradually.
Chin said the company had received encouraging responses from potential investors, who are looking to set up their manufacturing plants and headquarters in Perak due to the state government’s investor-friendly policies.
“Our aim is that by 2022, a significant portion of our earnings will come from our income stream, driven by our expertise in cost-efficient building technology such as Building Information Modelling in this proposed development,” he added. – Bernama, January 4, 2021
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