In a bid to improve its building capabilities and boost its revenue, Malaysian developer Sunsuria Bhd has partnered with China’s state-owned Citic Construction Co Ltd, reported the New Straits Times.
In line with this, their fully-owned subsidiaries — Sunsuria Builders Sdn Bhd (SBSB) and Citic International Investment Ltd — have formed a joint venture company in which the former will hold a 49 percent stake, while the remaining 51 percent will be owned by Citic.
Under the deal, Sunsuria will be Citic’s sole partner for all of its construction projects in Malaysia. In return, the joint venture has a right of first refusal to Sunsuria’s construction projects not related to its property development business.
“We believe this joint-venture will enable both parties to maximise our strengths towards great achievements and contribute significantly to Malaysia’s economic transformation,” said CITIC Construction Chairman Chen Xiaojia.
He also pointed out that Malaysia is globally recognised as a market with high-potential that plays a key role in the Beijing government’s One Belt One Road policy.
According to Sunsuria Executive Chairman Datuk Ter Leong Yap, the alliance with Citic reflects their continuous pursuit of sound financial growth and greater business expansion.
“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.”
The collaboration would also enable Sunsuria to take advantage of Citic’s robust financial strength and its proven track record in building large-scale developments.
Furthermore, the partnership follows Sunsuria’s recent purchase of Prosperspan Construction Sdn Bhd, which has been renamed as Sunsuria Asas Sdn Bhd (SASB) and will provide local support to the joint venture with Citic.
Image sourced from Sunsuria