PROPERTY-BASED Ageson Bhd expects its tie-up with China’s ZheJiang GuoRong Digital Economy Group Ltd to contribute synergistically in its quest of managing and operating industrial lots in the future.
Both parties inked a sale and development agreement today with ZheJiang GuoRong purchasing a piece of land measuring 168 acres in the Batang Padang district in Perak for RM278 mil.
A filing with Bursa Malaysia shows that the land is part of a mixed development land measuring 475 acres whereby Ageson Holdings Sdn Bhd – the parent company of Ageson – holds the exclusive development rights with Menteri Besar Incorporated (Perak) (MBI Perak).
This mixed development project comprising government agencies and administration units, industrial, commercial and residential development has a total estimated gross development value (GDV) of RM1.24 bil.
Under the agreement with ZheJiang GuoRong, Ageson Holdings shall execute and complete the infrastructure and construction works in accordance with the former’s specification and requirements.
In return, ZheJiang GuoRong shall grant Ageson Holdings the first right of refusal to appoint it as the developer of the industrial lots with buildings.
“Our sale and development project with the ZheJiang Group will enable both parties to leverage and tap each other’s strength, experience and expertise in the construction and operation of the industrial lots,” commented Ageson’s executive director Datuk Seri Chin Kok Foong.
“Given ZheJiang Group’s strong track record in China with industrial parks projects such as Ocean Science City of ZhouShan, the Feng Xian Nan Qiao Economic Park, Huang Shan Shuang Ling Digital Economic Park and Wen Cheng Da Xue Economic Park, this is in line with Ageson’s vision to introduce a new industrial park model.”
The execution of the sale and development agreement would provide the required funding for Ageson Holdings to finance the costs of the construction works via progress payments from the sales of the industrial lots to ZheJiang GuoRong.
This would enable the Malaysian partner to commence the construction works immediately upon obtaining the approvals.
According to Ageson’s executive director Datuk Seri Liew Kok Leong, the said development will provide earnings visibility to the group for the next few years while enabling it to expand its income base through the development of built-to-suit industrial space.
“We understand that the first stage of the development is to build an economic industrial park with an integration of the ecosystem,” noted Liew.
Ageson is optimistic that this new development will be able to increase the overall value of the properties within the local vicinity while creating job opportunities for the people.
Additionally, the company is also confident that the sale and development agreement will pave way for future construction and development collaborations with ZheJiang Group.
At 4.04pm Ageson was down 0.5 sen or 5.56% to 8.5 sen with 4.43 million shares traded, thus valuing the company at RM110 mil. – Oct 21, 2021
