Rivertree to finalise three more Klang Valley CLQ projects within nine months

KUALA LUMPUR (July 15): Rivertree STF Synergies Bhd (KL:RSSB) expects to sign contracts for three more centralised labour quarters (CLQs) in the Klang Valley within the next six to nine months, following the award of its first project under a broader RM600 million collaboration.

Rivertree STF executive director Datuk Simon David Leong said the remaining three projects under the group's collaboration with Catenary Capital Sdn Bhd were currently being finalised.

"This is the first definitive agreement that we signed today. The other three will be coming in the next six to nine months. We are finalising a lot of details," he told reporters after the commemoration ceremony on Wednesday.

He said the locations could not yet be disclosed, but confirmed that all four projects under the collaboration would be located in the Klang Valley.

Leong said the company is focusing on the Klang Valley because it sees stronger demand for compliant worker accommodation there than in other states.

He said Klang and Shah Alam account for the bulk of Selangor's registered foreign workforce, while the company also has an established presence in the area.

"We feel that the demand-supply gap is very much in the Klang Valley at the moment," he said.

While Penang and Johor also have markets for centralised labour quarters, Leong said Rivertree's immediate priority remains the Klang Valley.

Earlier on Wednesday, Rivertree announced that its wholly owned subsidiary RSSB Builders Sdn Bhd had secured a RM168.14 million turnkey contract from Asetvest Sdn Bhd to design and build a 9,000-bed CLQ facility, known as Q Centre @ Teratai, in Kapar, Klang.

The project is the first to proceed under a heads of agreement signed in March for the development of up to four CLQs with a combined capacity of 28,800 beds and an indicative value of RM600 million.

Construction is targeted for practical completion by June 30, 2028, with full completion and certification expected by Dec 31, 2028.

At market close on Wednesday, Rivertree STF’s shares were up by a sen or 2.9% to 35 sen, which gives it a market capitalisation of RM182.9 million.

..........

Read about emerging trends, data-backed insights, growing subsectors, and expert commentaries in EdgeProp print. Subscribe now for your free copy!