China Railway Engineering Corp (CREC), via its various subsidiaries, has made inroads in the local property market, which began with its successful bid to develop the RM200 billion Bandar Malaysia project with Iskandar Waterfront Holdings, reported The Sun Daily.
CREC Development (M) Sdn Bhd revealed in November 2016 that it has partnered with Titijaya Land Bhd for a RM2.1 billion mixed development project at Embassy Row, Jalan Ampang, Kuala Lumpur.
Another subsidiary, China Railway Liuyuan Group Co Ltd, was appointed yesterday by Paramount Blossom Sdn Bhd as the main contractor for its RM650 million project in Seremban.
To be built on a 77-acre site, the project comprises the development of 835 terrace homes, semi-Ds and duplexes that will be launched in three phases.
Datuk Jaafar Abu Hassan, special project director at Paramount Blossom, said the company expects to obtain relevant approval from authorities in May or early June.
For their first launch, which is set in May 2017, the company targets to “support the government’s call for affordable housing. We’re also targeting first-time house buyers,” he said.
In explaining why it had chosen a Chinese contractor over local ones, Jaafar said the company considered the preference of its investors.
Notably, Fujian Hexinyuantong Investment Co Ltd, a cross-border financing, securities and asset management company in China, is set to finance up to RM650 million.
“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,” said Jaafar at the signing of the joint venture agreement.
China Railway Liuyuan president Zhang Xianfeng revealed that the group looks forward to working closely with local companies that own quality land as well as project resources.
“With our strong design and construction capacity, CREC will definitely ensure and bring a profitable benefit to the local partners,” he said at the signing ceremony.
Image sourced from Khalil Adis
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
