Aspen developing serviced apartment project in Selangor

Malaysia-based developer Aspen (Group) Holdings is undertaking another project in Selangor.

The firm and its partner, Selangor Agricultural Development Corp (PKPS), are developing a 12,185 sq m site in Seri Kembangan into serviced apartments with full facilities.

The project's gross development value is estimated to be RM300 million (S$100 million), said Aspen, with sales expected to begin next year. Aspen is paying PKPS RM58.8 million for its share of the project.

It will outlay RM47.59 million of that in cash with the remaining RM11.25 million payable by way of apartment units at a 10 per cent discount to the market rate.

The amount due to PKPS is based on a plot ratio of six for the site. If the ratio is eventually fixed lower by the local council, the return to PKPS will be adjusted accordingly.

If the plot ratio is higher than six, 15 per cent of the increased gross development value will be payable to PKPS.

Aspen, which listed in July last year, will use RM6.63 million of its initial public offering proceeds to help pay for the project. The balance cash payment of RM40.95 million is expected to be funded from internal resources and bank borrowings.

MAKING INROADS

This development gives us a very good opportunity to venture into the Central Region by modelling the successful affordable home business model that we have created in Penang.

ASPEN CHIEF EXECUTIVE M. MURLY

The company said the site is at a prime location in a mature residential township with ready infrastructure and amenities. A hypermart and international schools are near, while two MRT stations will be built in the area.

It is also accessible via major roads and highways.

"This development gives us a very good opportunity to venture into the Central Region by modelling the successful affordable home business model that we have created in Penang," Aspen chief executive M. Murly said in a statement.

"We believe it will strongly appeal to young first-home buyers as it is strategically located within the mature urban residential township and it also enjoys unparalleled accessibility and connectivity to any part in the Klang Valley, including Putrajaya."

The investment is the second one in Selangor announced by Aspen in just over a month.

On Nov 30, it said an associate company had agreed to acquire 28ha of industrial land in Shah Alam from Chemical Company of Malaysia for RM190 million.

Aspen is developing that site into an integrated logistics, warehousing and e-commerce hub.

A version of this article appeared in the print edition of The Straits Times on January 16, 2018, with the headline 'Aspen developing serviced apartment project in Selangor'. Print Edition | Subscribe