KUALA LUMPUR (Oct 22): Ageson Bhd has secured a contract with Shuangling Holdings Ltd to undertake a proposed residential development project worth RM95.2 million in Gombak, Selangor.

In a statement on Friday (Oct 22), the group said the development tenure of the project is two years and the profit to be generated from the project will be distributed to both parties based on the profit-sharing ratio pursuant to the agreement.

“We’re excited about the collaboration with Shuangling as it allows the group to leverage Shuangling’s strong financial position to kick-start the proposed development. 

“With Shuangling’s strong financial commitment, we believe that it will help to enhance our expertise and the collaboration is aligned with our commitment towards the sustainability agenda.

“Through this partnership, the group will be able to conserve its cash to undertake more development projects or construction projects. Financing for the development of the project could be funded via the collaboration as well as progress payment from sales of the proposed development. This will avoid the need to tap external borrowings, which help Ageson to not to increase its gearing level,” according to Ageson executive director Datuk Seri Chin Kok Foong.

Meanwhile, Ageson executive director Datuk Seri Liew Kok Leong believes that the project will help to increase revenue and the overall financial performance of the group in the near term.

In the longer term, this partnership will create synergistic opportunities between Ageson and Shuangling, paving ways for future collaborations in the regional property development industry, the company said.

At the time of writing on Friday, shares in Ageson were traded half a sen or 5.56% lower at 8.5 sen, giving it a market share of RM110.38 million.