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S P Setia, Rimbunan Hijau in JV

KUALA LUMPUR: S P Setia Bhd and the Rimbunan Hijau Group have signed a Sino-foreign joint venture (JV) contract with Qinzhou Jingu Investment Co, Ltd to develop the China-Malaysia Qinzhou Industrial Park (QIP).

The Sino-foreign JV company, China-Malaysia Qinzhou Industrial Park Development Co, Ltd (JV Co), will develop the QIP and is expecting to generate a gross revenue of RM2.7bil (5.2 billion renminbi) from the QIP’s start-up phase.

In a statement, S P Setia said the RM2.7bil income would be derived from land sales to industrial and commercial entities seeking to set up business in the QIP.

It also said that the start-up phase, spanning over 787ha comprising industrial and residential projects as well as schools, hotels, community centres, parks, playgrounds and green spaces, is expected to take approximately three years to be completed.

The QIP has a total planned area of 5,499ha and would be the third industrial park in China that is under a government-to-government initiative.

S P Setia and Rimbunan Hijau’s participation in the JV Co would be via a Malaysian consortium known as Qinzhou Development (Malaysia) Consortium Sdn Bhd. The Malaysian consortium will hold 49% of the shares in the JV Co, with the Chinese party holding the rest.

The formalising of the Sino-foreign JV contract here yesterday was witnessed by International Trade and Industry Minister Datuk Seri Mustapa Mohamed, GuangXi Zhuang Autonomous Region People’s Republic of China governor Chen Wu, the Prime Minister’s special envoy to China Tan Sri Ong Ka Ting, Chinese ambassador to Malaysia Datuk Chai Xi and GuangXi Zhuang Autonomous Region vice governor Zhang Xiaoqin.

In his opening remarks, Mustapa said that the QIP project was progressing well and that it reflected the close relationship between China and Malaysia.

“Together with the Malaysia-China Kuantan Industrial Park (MCKIP), it is an important platform to foster closer ties between the industries and both countries,” he said.

To date, there have been more than 500 companies which have made inspection visits to the QIP.

In a statement, S P Setia chief operating officer Datuk Voon Tin Yow, meanwhile, said: “After months of negotiations and working together in mutual co-operation with our JV partners, we are delighted that we have managed to finalise the terms of the Sino-foreign JV contract.”

In conjunction with the signing of the contract, Kuantan Pahang Holding Sdn Bhd entered into a conditional subscription and shareholders’ agreement with GuangXi Beibu Gulf Asean Investment Co, Ltd to establish a JV vehicle for the proposed development of the MCKIP.

Kuantan Pahang Holding is owned by S P Setia (40%), R H Property Holdings Sdn Bhd (30%), Perbadanan Setiausaha Kerajaan Negeri Pahang (18%) and Perbadanan Kemajuan Negeri Pahang (12%).

which, in turn, will hold a 51% stake in the Malaysian JV company to be set up to develop this sister industrial park to the QIP, with the Chinese consortium owning 49%.

SOURCE: The Star, 16 July 2013.

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