More property development projects for Ageson

Ageson Bhd, formerly Prinsiptek Corporation Bhd is beefing up its property development activities and is expected to launch a mixed development project in Perak.

It’s 75 per cent-owned unit Ageson Holdings Sdn Bhd (AHSB) has inked a development rights agreement (DRA) with Perak Menteri Besar Incorporated (MBI Perak) to develop the project on 192.23 hectares of land in Batang Padang.

In a statement, Ageson executive director Datuk Seri Chin Kok Foong said the DRA provided the company development rights to the land without burdening the company’s existing cash flow.

“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.

Chin said the company had received encouraging response from some potential investors, who are looking to set up their manufacturing plants and headquarters in Perak.

As the master developer of the proposed development, Ageson is assessing various options to develop the land, including joint-venture partnership and/or developing the land on its own gradually, he said.

The project has an estimated gross development value (GDV) of RM1.24 billion and will take about 15 years to develop.

According to a Bursa Malaysia filing, the project is expected to commence in the first quarter of next year.

Under the agreement with AHSB, MBI Perak, an entity owned by the state government of Perak will provide the development land to Ageson, free from all encumbrances, for the project.

In return for the land’s development rights, AHSB will pay MBI Perak an entitlement of 20 per cent of the total GDV of each phase of the development or RM72 million, whichever is higher, over the development period.

The project comprises 365 units of shop offices, 1,038 terraced houses, 332 semi-detached homes, 191 detached houses, and 33 industrial lots.

It will also consist of a District Health Department Office, a District and Land Office, a District Council Office, and a Community Development Department Tapah office.

Ageson said the development cost of the overall project is estimated to be RM879.9 million, and it expects to generate for the group some RM310.6 million in gross profit.

Current projects by Ageson include Sri Gombak, comprising condominium units worth RM50 million collectively, and an affordable housing project in Pahang, with a GDV of about RM100 million.

Ageson is expected to launch Prins Bay, a mixed development project comprising a hotel, serviced apartments, and retail shops in Penang this year. The project in Batu Ferringhi has an estimated GDV of RM178 million.

Chin told NST Property last November that there will be about 80 units of luxury hotel-managed serviced apartments in Prins Bay.

Ageson’s target market for the Penang project is young professionals, including engineers, financial accountants, legal advisors, and enterprises.

Source: NST