KUALA LUMPUR: Bursa Malaysia main-market listed plywood products maker Annum Bhd signed a memorandum of understanding (MoU) with Koperasi Belia Nasional Bhd (KBNB) via its indirect wholly-owned subsidiary, IJ Ventures Sdn Bhd (IJV).
The MoU entails IJV's intention to appoint KBSB as an agent to procure its members to purchase all its development units in Perak.
Annum believes the property development fits into the profile of the members of KBNB, which will help the marketing of its property development.
The residential development consists of 130 units of single-storey terrace houses on land in Mukim Belanja, Daerah Kinta, in Perak.
It has obtained approval from the Batu Gajah district council for development.
The price range of the residential development ranges from RM250,000 to RM350,000.
"This will be a win-win situation as we wanted to push forward with the sale of the development because it will help us in terms of cash flow.
"Furthermore, given the rising interest rate environment, we believe it is vital for development projects to sell affordable housing in the market swiftly.
"Since the affordable housing also fits into KBNB's members' profit, we are confident that the collaboration is a perfect fit. In exchange, we will pay KBNB an agent fee," Annum spokesperson said.
The MoU will set out the key terms of the sale and purchase of all the development units, providing a platform for both IJV and KBNB to move forward with their negotiations on the appointment.