Ageson teams up with China partner for residential project in Selangor

PROPERTY-based Ageson Bhd will leverage the strong financial position of its China partner in its forthcoming development project, thus circumventing the need to tap on external borrowings which would only escalate the company’s gearing level.

Yesterday (Oct 23), the company’s indirect wholly-owned subsidiary Solidvest Properties Sdn Bhd inked a collaboration agreement with Shuangling Holdings Ltd to undertake a proposed residential development project at Mukim Batu in the Gombak district of Selangor.

The development tenure of the project which boasts a gross development value (GDV) of RM95.2 mil is about two years from the commencement date of the proposed development.

The profit to be generated from the project will be distributed to both parties based on the profit sharing ratio pursuant to the agreement.

“We’re excited with the collaboration with Shuangling as it allows the group to leverage on Shuangling’s strong financial position to kickstart the proposed development,” commented Ageson’s executive director Datuk Seri Chin Kok Foong.

“With Shuangling’s strong financial commitment, we believe this will help to enhance our expertise given the collaboration is aligned with our commitment towards the sustainability agenda.”

Through this partnership, Ageson will be able to conserve its cash to undertake more development projects or its construction projects.

The financing for the development of the project could be funded via the collaboration as well as the progress payment from sales of the proposed development.

Datuk Seri Chin Kok Foong (left) and Datuk Seri Liew Kok Leong

Meanwhile, fellow executive director Datuk Seri Liew Kok Leong expects the partnership to enhance visibility of the said development.

“We believe the collaboration will help to increase the revenue and overall financial performance of the Ageson group in the near-term,” he opined.

“The collaboration with Shuangling marks a significant milestone in our business expansion strategy. We are optimistic that the group is in a good position to capitalise on the plenty of opportunities that is present in the industry.”

On the longer term, Liew envisages the partnership to create synergistic opportunities between Ageson and Shuangling, hence paving ways for future collaborations in regional property development.

At the close of yesterday’s trading, Ageson was down 0.5 sen or 5.56% to 8.5 sen with 7.82 million shares traded, thus valuing the company at RM110 mil. – Oct 23, 2021

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