KUALA LUMPUR (June 19): OCR Group Bhd’s 40 per cent-owned associate company, Landasan Surimas Sdn Bhd, has entered into a joint-venture (JV) agreement with the Pahang State Development Corp (PKNP) to set up a JV firm, Taraf Raya Sdn Bhd on a 70:30 basis.
The establishment of Taraf Raya is to provide mechanical and civil works (excluding tunnelling works) relating to East Coast Rail Link project (ECRL) (pictured) within Pahang, subject to the final contract to be entered into between Taraf Raya, Malaysia Rail Link Sdn Bhd and China Communications Construction (ECRL) Sdn Bhd.
“It is envisaged to feature 14 passenger stations, five combined passenger and freight stations, as well as one freight station, out of which seven stations are located in Pahang. The entire project is targeted to be completed by December 2026,” OCR said in a statement.
Among the salient terms of the JV is that PKNP shall be entitled to nominate three directors while LSSB shall be entitled to nominate five directors to the board of Taraf Raya.
Additionally, PKNP shall be entitled to 30 per cent shares plus one unit of Golden Share which gives it certain rights, including to veto any acquisition, sale, transfer, conveyance, assignment of shares or assets in the company.
Currently, OCR has also been appointed by Yayasan Pahang to undertake a project management consultation role, which entails overseeing the latter's affordable housing scheme in Pahang comprising over 25,000 residential units over the next 15 years.
This includes OCR’s PRIYA Scheme Kuantan development, which is expected to be completed in 2021.
Prior to undertaking this role, OCR has already recognised Pahang’s potential as a rapidly-growing economic hub through its vast land area and strategic location, hence OCR’s recent property development ventures of PRIYA Scheme Kuantan and upcoming Vertex Kuantan will cater to this strategic market.
“The collaboration with PKNP will promote the interests of the Pahang state and its people, be part of the long-term urbanisation and assuring that the homegrown contractors reap benefits towards the sustainable growth for the larger community upon completion of the ECRL.
“This is also aligned with OCR’s growth strategy of building a stronger recurring income stream within its current scope of operations in property development, construction and project management consultation,” it added.
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