KUALA LUMPUR: Sunsuria Bhd’s wholly owned subsidiary Sunsuria Builders Sdn Bhd (SBSB) has inked a partnership with China’s Citicc International Investment Ltd (Citic), a wholly owned subsidiary of Citic Construction Cot Ltd, in a bid to expand its business and financial growth.
The property developer said the partnership would enable the company to leverage on the Chinese state-owned conglomorate’s strong financial strength and proven track record in construction to take on larger-scale projects.
It said the partnership will be executed via a shareholders’ agreement (SHA) where the two companies will form a joint-venture company (JVCo).
Under the agreement, Citic will hold a 51 per cent stake in JVCo with SBSB holding the remaining 49 per cent.
According to the JVCo, Sunsuria will be Citic Construction’s sole partner for all construction works in Malaysia.
Sunsuria will reciprocate by granting the JVCo a right of first refusal to construction works projects not arising from the property development business carried out or undertake by the company.
CITIC Construction chairman Chen Xiaojia said Malaysia is recognised globally as a very high-potential market and plays an important role in China’s One Belt One Road initiative.
“We believe this joint-venture will enable both parties to maximise our strengths towards great achievements and contribute significantly to Malaysia’s economic transformation,” he said in a statement.
The announcement follows Sunsuria’s recent acquisition of construction subsidiary Prosperspan Construction Sdn Bhd, now known as Sunsuria Asas Sdn Bhd (SASB).
SASB will provide local support to this joint-venture.
This move reflects Sunsuria’s ambitions to enhance its capabilities and margins for construction-related businesses.
Its executive chairman Datuk Ter Leong Yap said the partnership shows the company’s relentless pursuit for greater business expansion and sound financial growth.
“In Citic Construction , we have found a business partner who not only shares our commitment towards integrity and reliability in business, but one that boasts of vast experience and technical expertise, financial strength, and a strong support network,” he said.