CREC makes inroads in local property scene

CREC makes inroads in local property scene

PUTRAJAYA, 6 January: China’s China Railway Engineering Corp (CREC) looks to be actively participating in the local property market, acting via its various subsidiaries.

It started off with its successful bid with Iskandar Waterfront Holdings to develop the RM200 billion Bandar Malaysia project.

Last November, CREC Development (M) Sdn Bhd announced that it was partnering with Titijaya Land Bhd for a mixed development project at Embassy Row, Jalan Ampang, Kuala Lumpur, with a gross development value (GDV) of RM2.1 billion.

Yesterday, privately-owned construction firm Paramount Blossom Sdn Bhd appointed another subsidiary China Railway Liuyuan Group Co Ltd as the main contractor for its maiden property project in Seremban with a GDV of RM650 million.

China’s Fujian Hexinyuantong Investment Co Ltd will provide financing of up to RM650 million for the project. Fujian Hexinyuantong is engaged in cross-border financing, securities and asset management.

When asked the reason for choosing a Chinese contractor instead of local ones, Paramount Blossom special project director Datuk Jaafar Abu Hassan explained that the company has to take the investor’s preference into consideration.

“The investor is putting their money, there is a construction risk, so the Chinese party is more comfortable with their contractor. To them, CREC is big with high turnover and their contracting is different compared with ours. They did not insist, but they asked whether we can consider CREC,” he told reporters after the signing of the joint venture agreement here yesterday.

At the signing ceremony, China Railway Liuyuan president Zhang Xianfeng said the group is looking forward to cooperate closely with Malaysian companies that own quality land and project resources.

“With our strong design and construction capacity, CREC will definitely ensure and bring a profitable benefit to the local partners,” he noted.

Paramount Blossom’s project will be built on a piece of 77-acre land which was bought three years ago. It was formerly the Seremban 2 golf course and the club house is currently rented to Zenith International College on a month-on-month basis.

Jaafar said the project consists of the development of 835 terraced houses, semi-Ds and duplexes and will be launched in three phases, with the first phase in May 2017.

“We expect to obtain the relevant approval sometime in May or early June. For the first launch, we want to support the government’s call for affordable housing. We’re also targeting first-time house buyers,” he said.

Paramount Blossom is a subsidiary of Landasan Kapital (M) Sdn Bhd, which has been involved in building construction, civil engineering projects and steel fabrication works in the public and private sectors.

Checks with the Companies Commission of Malaysia show that Landasan Kapital is 82.4%-owned by Mohd Raimi Jusoh. For the financial year ended Dec 31, 2015, the company reported a net profit of RM2.4 million.

— THE SUN

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