Dated 28^th of October 2022, AGESON BERHAD or “AGES” had an announcement whereby a MOU was signed between Solidvest Properties Sdn Bhd or known as “Solidvest” and Koperasi Belia Nasional Berhad or known as “Kobena” for a sale of land.

Solidvest is an indirect 99% owned subsidiary for AGES.

Particulars of the said land to be sold.

Under the MOU, AGES will sell a piece of land measuring 9.325 aces at the said location for a total purchase consideration of RM35.0 million. However, there are more terms under the MOU.

1.      Due to Solidvest’s solid track record in the field of property development, the GLC-Kobena has intended to appoint Solidvest as the developer to plan, develop, complete and procure potential purchasers for the said development.

2.      The development is expected to be parcelled into 56 units of semi- detached houses, 4 units of bungalows, 1 unit of pump house and suction tank and 1 unit of electrical substation.

3.      In fact, Solidvest had already acquired the planning permission plan from Majlis Perbandaran Selayang since 22^nd of July 2019.

4.      The GDV of the development is expected to be RM95.2 million where the GDC is expected to be RM41.2 million, in which the costs will be financed by an established property developer from China, ShuangLing Holdings Ltd. According to a preliminary fact check, the registered capital of ShuangLing Holdings Ltd. is approximately USD50.0 million.

5.      The development is expected to be completed within two (2) years since the commencement of the development.

Details pertaining to ShuangLing Holdings Ltd: https://www.qixin.com/company/371c9377-4929-4b02-a68c-d80317dcc58e

It is important to highlight that AGES will be benefitting twice under the said proposal. For starter, the company will be able to convert the said asset into RM35.0 million in cash as a stash in their war chest. Next, under the MOU, AGES is entitled for profit under the development where the costs of development had already been financed by ShuangLing Holdings Ltd.

This will result in two (2) times in cash flow and profit generation for AGES as the net book value of the land bank is only RM1.55 million under their balance sheet.

Prior to the MOU, AGES is already enjoying healthy margins under their construction and property development arm despite having a minor hiccup in their Q1 results. With the support of GLC and the established China developer, the project is expected to kick off within 3 months which will be reflected in the upcoming financial year.

Certainly, AGES is once again one step closer to becoming the next major property developer in Malaysia.