SINGAPORE - Malaysian developer Aspen (Group) Holdings is in a joint venture (JV) to redevelop a piece of leasehold commercial land in Selangor, Malaysia into residential service apartments with full facilities.

The total gross development value of the project is estimated at RM300 million (S$99.1 million).

Aspen will pay landowner Selangor Agricultural Development Corporation (PKPS) RM58.8 million - which is 20 per cent of the project's gross development value - for development rights to the 12,185 square metre piece of land, under the JV between Aspen's subsidiary and PKPS, the group said in an exchange filing on Wednesday.

The project is expected to be completed four years from the date of fulfilment of conditions set out in the JV agreement. Based on current plans, the project will start in the fourth quarter of 2019.

About 91.5 per cent of the amount due to PKPS will be cash instalments to be paid over the development timeline, while the remaining 8.5 per cent will be paid via units from the project.

M Murly, president and group chief executive officer of Aspen Group said: "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.

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

Shares in Aspen Group last traded up 0.1 cent on April 8 at S$0.14