KUALA LUMPUR (Feb 15): Compugates Holdings Bhd's share price shot up 17% after receiving an undertaking letter to begin works on a joint development with a gross development value of RM550 million in Sepang, Selangor.

The counter closed half sen or 16.67% higher at 3.5 sen with 4.48 million shares done for a market capitalisation of RM82.17 million.

Yesterday, Compugates said its sub-subsidiary Compugates Development and Mining Sdn Bhd (CDM) received the letter from Jade Classic Sdn Bhd to accept and undertake a plot of agriculture land on an 'as is where is basis and with vacant possession'.

It said the developer, Jade Classic, has inspected and examined the land and would contribute and carry out the development according to a joint venture (JV) agreement dated Nov 28, 2017 between CDM and Jade Classic.

"Jade Classic would bear the entire cost and expense including getting the land filled and ready for development according to approvals, layout and building plans," it added.

Compugates said Jade Classic would be able to guarantee that the GDV would not be less than RM550 million excluding the development of "Rumah Selangorku".

Last November, CDM and Jade Classic formed a JV to develop the 25.09ha land into a mixed development, subject to the approval of the authorities. The development comprises 500 houses, 1,100 Rumah Selangorku homes and four blocks of 600 units of high-rise mixed residential and commercial units.