PRG Holdings Bhd, a Bursa Malaysia Main Market-listed investment holding Company with its interest in property development, construction and manufacturing businesses, is pleased to announce that its wholly-owned subsidiary, Premier Construction Sdn Bhd (PCSB) has entered into a mutual agreement with SPNB Aspirasi Sdn Bhd (SASB) and Cash Key (Ipoh) Sdn Bhd (CKISB) to develop a land via a joint venture company (JV Co), which will be jointly owned by SASB and PPSB.
CKISB, being the owner of 213 parcels of lands in Perak Darul Ridzuan, has agreed to withdraw from the previous joint development agreement signed with SASB to develop a housing scheme known as “Cadangan Pembangunan Rumah Aspirasi Rakyat di Mukim Sungai Terap, Daerah Kinta, Perak.
Under the MA, all 3 parties have agreed to mutually terminate the JDA and SASB shall thereafter jointly develop the Land with PCSB under a joint venture company, Premier Aspirasi (Batu Gajah) Sdn Bhd. CKISB shall sell the Land to PCSB at a total purchase price of RM9.9 million.
PRG Group Managing Director Dato’ Lua Choon Hann said: “The Project to be jointly undertaken between PCSB and SASB is in line with the Group’s strategy of strengthening its presence in the property development market through strategic acquisitions and/or joint ventures on property development projects with strategic partners.”
SASB is a private limited company that is wholly-owned by Syarikat Perumahan Negara Berhad (SPNB), which is in turn wholly-owned by Ministry of Finance Incorporated under the Ministry of Finance, Malaysia. On the other hand, MNH is a private limited company that has the necessary expertise and experience in housing development, consultation, project management consultant, and project financing.
PRG had on 27 September 2017 entered into a shareholders’ agreement with SPNB Aspirasi Sdn Bhd (“SASB”) to formalise their commitments in exploring potential collaboration and joint venture opportunities in housing development projects by SASB. Based on the initial assessment, these projects are worth approximately RM5 billion.