Thursday, 29 June 2017

(The Star) Sunsuria in JV with Citic

PETALING JAYA: Property developer Sunsuria Bhd has entered into a partnership agreement with China-based conglomerate Citic Ltd to undertake construction projects in Malaysia.

In a statement yesterday, Sunsuria said its wholly-owned subsidiary Sunsuria Builders Sdn Bhd had inked a joint venture (JV) deal with Citic Construction Co Ltd’s unit Citic International Investment Ltd.

Citic Construction is a wholly owned subsidiary of Citic Ltd, the biggest conglomerate in China.

“The partnership enables Sunsuria to leverage on the China state-owned conglomerate’s strong financial strength and proven track record in construction to take on larger-scale projects,” Sunsuria said.

Under the agreement, the two companies would form a JV company, where 51% would be owned by Citic and the remaining 49% will held by Sunsuria.

Under the JV, Sunsuria will be Citic Construction’s sole partner for all construction works in Malaysia.

Meanwhile, for Sunsuria, it will grant the JV company the right of first refusal for construction work projects not arising from the property development business carried out or undertaken by Sunsuria.

Sunsuria had recently acquired a construction company Prosperspan Construction Sdn Bhd, now known as Sunsuria Asas Sdn Bhd (SASB).

The company said SASB would provide local support to the JV.

Sunsuria said the acquisition and the JV agreement with Citic were in line with the company’s ambitions to enhance its capabilities and margins for construction-related businesses.

Citic Construction chairman Chen Xiaojia said: “Malaysia is recognised globally as a very high-potential market and played an important role in China’s One Belt One Road initiative. We believe that this joint venture will enable both parties to maximise our strengths towards great achievements and contribute significantly to Malaysia’s economic transformation.”

Sunsuria executive chairman Datuk Ter Leong Yap said the JV was a reflection of the company’s pursuit for business expansion and sound financial growth.

“In Citic Construction, we have found a business partner who not only shares our commitment towards integrity and reliability in business, but one that boasts of vast experience and technical expertise, financial strength, and a strong support network,” he said.

Among Citic Construction’s major projects are China’s iconic National Olympic Stadium (The Bird’s Nest), Royal Albert Dock project in the UK, Algeria’s East-to-West Expressway, Brazil Caniota thermal power plant, Myanmar multifunctional diesel engine plant, Belarus cement production lines, Uzbekistan potash fertiliser plant and large-scale housing projects in Africa and Venezuela.