PRG's construction arm takes 12 Picasso Residence units to partially recover RM37 mil debt

PETALING JAYA (April 24): PRG Holdings Bhd's construction subsidiary has agreed to accept 12 condominium units at Picasso Residence along Jalan Jelatek, Kuala Lumpur, as partial settlement of a RM37.17 million debt owed by the project's developer — a contra arrangement valued at RM13.73 million or RM1,066 psf.

In a Bursa Malaysia filing yesterday (April 23), PRG said its wholly-owned subsidiary Premier Construction (International) Sdn Bhd (PCI) entered into a settlement agreement with Premier De Muara Sdn Bhd (PDM), the developer of Picasso Residence, to partially recover outstanding construction fees via the transfer of 12 completed units.

PDM had appointed PCI as main contractor for Picasso Residence under a Letter of Award dated May 30, 2022. 

As at March 31, 2026, PDM owed PCI a total of RM37.17 million. 

The settlement covers RM13.73 million of that sum, leaving a remaining balance of RM23.44 million which PCI said it will pursue through further negotiation and/or other means.

The 12 units comprise 10 Type A units of approximately 1,013 sq ft each — a two-bedroom, two-bathroom layout with one car park bay — and two Type B units of approximately 1,375 sq ft each, with three bedrooms, a utility room, three bathrooms and two car park bays. 

Both unit types were priced at RM1,066 per sq ft, which PRG said falls within the range of comparable transactions in the surrounding area of approximately RM950 to RM1,200 psf.

Picasso Residence is a luxury condominium project comprising 472 units across two towers. 

Tower A received its certificate of completion and compliance on Sept 6, 2024, while Tower B followed on Nov 15, 2025. 

Strata title for the development was issued on Jan 27, 2026.

PRG noted that the settlement involves no cash outlay by the group. Transfer and registration costs will be shared equally between PDM and PCI.

The board said it considered the settlement fair and reasonable, noting the units' strategic location, established surrounding infrastructure and sustained demand from owner-occupiers and investors. 

PRG acknowledged that holding the units carries property-related risks, including exposure to market fluctuations and ongoing holding costs, but said these risks are mitigable given the project's location.

The settlement is expected to be completed in the second quarter of 2026 and does not require shareholder approval. 

The highest percentage ratio applicable under Bursa Malaysia's Main Market Listing Requirements is 14.26%.

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