KUALA LUMPUR (Sept 28): Plywood products maker Annum Bhd (formerly Cymao Holdings Bhd), has inked a preliminary agreement to appoint Koperasi Belia Nasional (Kobena) as an agent to get its members to purchase all 130 single-storey terrace homes of a residential project which it is developing in Perak.
Annum, via its indirect wholly-owned IJ Ventures Sdn Bhd (IVSB), inked a memorandum of understanding with Kobena on Wednesday (Sept 28), its bourse filing showed.
Under the agreement, Kobena agrees to procure its members to purchase all units of the project, while IVSB agrees to pay Kobena an agent fee that will be determined upon mutual agreement of the parties.
The homes will be sold to Kobena members at RM250,000 (intermediate lot), RM350,000 (end lot) and RM343,000 (corner lot). There are a total of 106 intermediate lots, 10 end lots and 14 corner lots.
The project, on which earthworks have started, is expected to be completed in two years.
The project’s gross development value is estimated at about RM31.06 million and the gross development cost (including land cost) is RM23.84 million.
“The project is expected to provide a gross development profit of approximately RM7.22 million,” Annum said.
The property project will be financed through a combination of internally-generated funds and/or bank borrowings.
Annum shares closed 3% lower at 32 sen on Wednesday, giving the company a market value of RM31.20 million.