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S P Setia in JV to develop Qinzhou Industrial Park

SHAH ALAM (Apr 2): S P Setia Bhd is gaining a foothold in China by being one of the key players to develop the China-Malaysia Qinzhou Industrial Park along with joint-venture (JV) partner Rimbunan Hijau Group, the developer said in a press release on Monday.

"We have been on the look-out for good development opportunities in China since 2009," said S P Setia president and CEO Tan Sri Liew Kee Sin. "Our participation as a key player in the development of such a significant government-to-government-backed project provides a tremendous boost to our long-term ambitions of achieving sustainable growth overseas."

According to S P Setia, its participation will be through a 45% stake in a Malaysian JV company known as Qinzhou Development (Malaysia) Consortium Sdn Bhd. This consortium will own 49% of a China JV Co, to be formed with Qinzhou Jingu Investment Ct Ltd.

The China JV Co will be the vehicle through which both parties will develop the China-Malaysia Qinzhou Industrial Park. The gross development cost of the project is still being ascertained.

The industrial park will sit on 55 sq km (or 13,590 acres), and will have five districts: industrial; residential; auxiliary service; production and living centre; and scientific and technology serve. Upon completion, it is expected to house a population of 500,000, which is about 13% of Qinzhou's current estimated population of 3.9 million, the developer said.

The project will start off with a Start-Up District comprising commercial, residential, industrial and public amenities, which will sit on 7.87 sq km (or 1,945 acres). The estimated cost of this district is 5.4 billion yuan (RM2.6 billion).

As a result of this landmark project, the industrial park has been accorded the preferential policy implemented at national level industrial parks. This will enhance the attractiveness of the park as an investment destination for potential customers.

A ground-breaking ceremony was held on Monday at the location of the industrial park, with Chinese Premier Wen Jia-Bao and Prime Minister Datuk Seri Najib Razak. Also in attendance was the Prime Minister's Special Envoy to China Tan Sri Ong Ka Ting, Rimbunan Hijau Group chairman and managing director Tan Sri Tiong Hiew King, and Liew.
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