Ageson enters MOU to sell freehold land in Gombak for RM35 mil cash

• Ageson said its indirect 99%-owned subsidiary Solidvest Properties Sdn Bhd entered into a memorandum of understanding (MOU) with Koperasi Belia for the land.

KUALA LUMPUR (Sept 28): Ageson Bhd is selling 9.33 acres of freehold land in Gombak, Selangor to Koperasi Belia Nasional Bhd for RM35 million cash.

In a bourse filing on Wednesday (Sept 28), Ageson said its indirect 99%-owned subsidiary Solidvest Properties Sdn Bhd entered into a memorandum of understanding (MOU) with Koperasi Belia for the land.

Upon completion of the sale of the land, Koperasi Belia intends to appoint Solidvest as the developer of a project. Solidvest will be in charge of planning, developing, completing and procuring potential purchasers for a proposed residential development which consists of 56 semi-detached houses and four bungalows, as well as a pump house and suction tank, and an electrical substation.

The estimated gross development value of the project is RM95.2 million, while the estimated gross development cost is RM41.2 million, which will be jointly financed by Solidvest’s collaboration partner, ShuangLing Holdings Ltd.

The proposed development project is expected to commence within three months from the date of approval to be obtained by Solidvest, and will take about two years to complete.

“Solidvest shall guarantee to Koperasi Belia that after two years from the approval of the building plan of the proposed development, Solidvest shall be able to secure a profit of RM10 million to Koperasi Belia from the sale of the proposed development,” added Ageson.

Ageson’s share price finished 2.6% or one sen lower at 37.5 sen on Wednesday, bringing it a market capitalisation of RM116.9 million.