Sunsuria teams up with China’s CITIC to jointly undertake construction and property jobs

KUALA LUMPUR (June 29): Sunsuria Bhd is teaming up with Hong Kong-based CITIC International Investment Ltd (CIIL) to carry out construction work and property development in Malaysia.

Sunsuria said in a filing yesterday that its wholly-owned subsidiary Sunsuria Builders Sdn Bhd (SBSB) signed an agreement with CIIL to establish a joint-venture company (JVCo) for the purpose.

CILL is wholly-owned by Chinese state-owned CITIC Construction Co Ltd, which in turn is a wholly-owned subsidiary of Fortuine Global 500 company CITIC Ltd.

SBSB and CIIL would own the JVCo on a 49:51 basis.

CITIC Construction, one of 100 largest construction companies globally, has the expertise and technical know-how in construction, engineering, consultancy and general contracting of building projects.

One of the largest constituents of Hong Kong’s Hang Seng Index, CITIC Ltd’s total assets stood at HK$7.24 trillion (RM3.99 trillion) while its revenue was HK$380.8 billion (RM209.4 billion) as of Dec 31, 2016.

Sunsuria said the proposed joint venture enables it to leverage on CITIC Construction’s track record, engineering expertise, technical sophistication, resources and strong financial funding in executing large-scale projects here.

CILL would leverage on Sunsuria’s experience and familiarity with the local operating requirements and environment, enabling it to provide strategic and synergistic support in identifying business opportunities and winning projects.

“Sunsuria would be CITIC Construction’s sole partner for all construction works in Malaysia. Likewise, Sunsuria will reciprocate by granting the JVCo a right of first refusal to construction works projects not arising from the property development business it carries out or undertakes,” it added.

CITIC Construction’s major projects include China’s iconic National Olympic Stadium (The Bird’s Nest), Algeria’s East-to-West Expressway, Brazil Caniota Thermal Power Plant, and Myanmar’s Multifunctional Diesel Engine Plant.

It was also the main contractor for the RM9.2 billion Royal Albert Dock regeneration development in East London in United Kingdom.

Sunsuria’s share price closed down yesterday two sen or 1.42% at RM1.39 for a market capitalisation of RM1.1 billion. — theedgemarkets.com

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