25 November, SHAH ALAM – PRG Holdings Bhd (PRG) and China’s Jiangsu Provincial Construction (M) Sdn Bhd (JPC) will jointly develop their first affordable housing project in Batu Gajah, Perak by the first quarter of next year.
The initiative, which will be undertaken by their joint-venture entity, Premier JPC Sdn Bhd, will see 213 affordable single-storey houses priced at RM190,000 being built on a 18-acre (7.2 hectares) site.
PRG Managing Director for Property and Construction Datuk Alex Wee Cheng Kwan said the company is currently focusing on the affordable housing segment to jointly develop projects with an estimated gross development value (GDV) of RM5 billion, comprising the list of projects under Syarikat Perumahan Negara Bhd (SPNB).
“Our upcoming move will be to conduct feasibility studies on the potential 23 projects with a total GDV of RM5 billion.
“The first project will kick-start in Batu Gajah, Perak next year and scheduled for completion by end of 2019,” he told a press conference after attending a ceremony to kick off the affordable housing project by Deputy Finance Minister Datuk Lee Chee Leong here, today.
Under the collaboration agreement signed earlier, PRG will source for infrastructure, construction, project financing and property development projects.
On the other hand, JPC will invest, finance and be responsible for performing, building, completing and complying with the terms and conditions of projects and contract works procured by PRG.
PRG Group Managing Director Datuk Lua Choon Hann said his company is keen to explore other infrastructure construction projects, namely highways, bridges and ports, given the capability of JPC.
In his speech, Lee noted the undersupply of affordable houses, while the prevailing median prices of houses were beyond the reach of most Malaysians.
“The main reason for this can be attributed to a gross mismatch between housing supply and demand, amidst diverging expectations between households and developers,” he said.
He said SPNB, which was set up by the government in 1997 to provide quality and affordable houses, had built 95,328 residential units all over the country and currently 15,104 units were under construction.