Monday, November 29

PRG signs agreement with China’s Jiangsu Group


Jiangsu chief executive officer Qiu TianQing (fourth left) and Lua (fifth left) exchange documents to signify the signing agreement between Jiangsu PRG yesterday, accompanied by Deputy Finance Minister Dato Lee Chee Leong (sixth right), PRG property and construction chief executive officer Dato Steven Hooi (right) and other delegates.

KUCHING: PRG Holdings Bhd (PRG), a Bursa Malaysia Main Market-listed investment holding Company with its interest in property development, construction, and manufacturing businesses, has entered into a strategic cooperation agreement with China’s Jiangsu Provincial Construction Group Co Ltd (JPC) to jointly undertake infrastructure, property, and construction activities in Malaysia and internationally.

Founded in 1956, JPC is one of the pioneers in the construction industry of China and was directly under the Construction Bureau of Jiangsu Province. Currently JPC is a member of the Greenland Group, which was ranked 268th in Fortune Global 500 back in 2014 and 40th mainland Chinese enterprise on the list.

To date, JPC has 4,500 employees and works on businesses in more than 30 countries around the world, with an annual output value of nearly 30 billion renminbi (approximately RM19 billion) and total assets of 15 billion renminbi (approximately RM10 billion).

To date, JPC has completed more than 10,000 construction projects, with an estimated 100 million sq m of construction and 10 million square metres of real estate development.

A filing with Bursa Malaysia shows that under the Agreement, PRG will source for infrastructure, construction, project financing, and property development projects, while JPC will invest, finance, and be responsible to perform, build, complete, and comply with the terms and conditions of projects/contract works procured by PRG.

PRG group managing director Datuk Lua Choon Hann said: “Things are going to be exciting in PRG, and we are pleased that we have JPC onboard, who shares our vision on this journey.

“Our partner, JPC, has an exemplary track record in the construction industry and PRG stands to leverage on its knowhow and resources to extract maximum value from the derivable synergy flow.”

“The Agreement is also in line with PRG Group’s business model to form joint ventures with strategic partners that are experienced in property development and construction projects, fitting into the Group’s strategies and business capabilities.

“This corporate exercise will also provide a good opportunity to diversify the revenue stream of the Group,” Lua added.

To recap, PRG had on 13 June 2017 also entered into a Memorandum of Understanding with SPNB Aspirasi Sdn Bhd and Mimbar Nusantara Holdings Sdn Bhd to explore potential collaboration and joint venture opportunities in housing development projects by SASB.

Based on the initial assessment, the potential gross development value of these projects is worth approximately RM5 billion.