SINGAPORE - Aspen Group will invest RM58.8 million (S$19.6 million) to redevelop a piece of commercial land in Selangor, Malaysia, via a joint venture with Selangor Agricultural Development Corp (PKPS).
The 12,185 sq m site in Seri Kembangan, Selangor will be developed into a residential project with a gross development value estimated to be RM300 million, and sales are expected to begin from 2019, said Aspen, a Malaysia-based property developer. Terms and conditions of the intended joint venture have yet to be set.
PKPS will receive RM47.59 million in cash, with the remaining RM11.25 million payable by way of apartment units at a 10 per cent discount to the market rate.
Aspen 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 by internal resources and/or bank borrowings.
The company said that the land sits in a prime location within a mature residential township with ready infrastructure and amenities.