Annum makes youth co-op property agent for its affordable housing project

BURSA Malaysia’s Main Market-listed plywood products maker Annum Bhd has appointed Koperasi Belia Nasional (KOBENA) as its property agent to procure the latter’s members to purchase all of its development units in an affordable housing project in Perak.

Yesterday (Sept 28), Annum via its indirect wholly-owned subsidiary IJ Ventures Sdn Bhd inked a memorandum of understanding (MOU) with KOBENA to appoint the co-operative as a property agent for one of its residential development project.

“We believe that the property development fits into the profile of the members of KOBENA, hence this will help the marketing of our property development,” the company pointed out in a statement.

The residential development that Annum will be marketing to members of the co-operative consists of 130 units of single-storey terrace houses on a piece of the land in Perak’s Kinta district. The project which will rake in RM33.9 mil in total sales has obtained green light for development from the Batu Gajah District Council.

The price of the residential development ranges from RM250,000 to RM350,000 per unit of dwelling.

Annum said the development will be a win-win proposition for both parties “as we wanted to push forward the sale of the development which will help to facilitate our cash flow.”

“Furthermore, given the rising interest rate environment, we believe that it is vital for development projects to sell affordable housing in the market swiftly,” noted the company’s spokesman. “Since the affordable housing also fits into enabling KOBENA to generate a revenue source, we are confident that the collaboration is a perfect fit. In exchange, we’ll pay the cooperative a fee for its service.”

The MOU will set out the key terms of the sale and purchase of all the development units while providing a platform for both IJ Ventures and KOBENA to move forward with their negotiations on the latter’s appointment as a property agent.

At the close of yesterday’s (Sept 28) trading, Annum was down 1 sen or 3.03% to 32 sen with 200,400 shares traded, thus valuing the company at RM31 mil. – Sept 29, 2022

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