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Wednesday, September 24, 2008

Sunway bags RM1.8b deal

BIGGER PRESENCE: (From right) Silver Coast managing director Shaher Awartani, Capitala acting CEO Heang Fine Wong and SunCon managing director Kwan Foh Kwal pose next to a model of Rihan Heights.

Sunway Holdings Bhd has bagged a RM1.8 billion contract to build part of a mixed development project in Abu Dhabi in the United Arab Emirates (UAE).

The contract marks its second job in the Middle East as the group seeks to expand abroad. It has already carried out projects in Singapore, India and Trinidad and Tobago.

In recent years, Malaysian builders have been expanding overseas as large construction projects become scarce at home.

Sunway Holdings' latest project involves works at Rihan Heights, phase one of the Arzanah mixed use integrated development.

It will be carried out by the Silver Coast-Sunway Innopave joint venture.

The joint venture is a 60:40 partnership between Sunway Innopave Sdn Bhd and the Abu Dhabi-based Silver Coast Construction and Boring LLC.

Sunway Innopave is a subsidiary of Sunway Construction Sdn Bhd (SunCon), which in turn is wholly owned by Sunway Holdings.

The contract will boost SunCon's order book to about RM3.3 billion and keep the group busy for the next three years.

"This project represents another step in Sunway group's globalisation plans under which SunCon is expanding our business interests and construction expertise to more countries," SunCon senior managing director Datuk Tan Kia Loke said.

It will also pave the way to more jobs in Abu Dhabi in future.

The contract was awarded by Mubadala CapitaLand Real Estate LLC (Capitala).

Capitala is a joint-venture company between Mubadala, a business development and investment company in Abu Dhabi, and Singapore's CapitaLand.

Mubadala holds the majority 51 per cent stake in Capitala, with the balance held by CapitaLand.

Tan said the project, to be led by Sunway Innopave, is strategically located at the gateway on Abu Dhabi island and is part of the fully integrated, mixed use development surrounding Zayed Stadium.

"Our contract will involve the construction of five residential towers, a three-level podium, 14 townhouses, a clubhouse and 1,208 parking bays together with associated landscaping, external works and services," he said.

SunCon had first ventured into Abu Dhabi to build five towers on Al Reem Island under a group.

However, the Arzanah Development-Rihan Heights project is the first that the company is spearheading with a local partner.

Tan said the Abu Dhabi government is committed to non-oil economic diversification, which is expected to reach 60 per cent in 2013, through investments and projects in the agriculture, industry, real estate and service sectors.

"This provides excellent opportunities for SunCon to further build our brand reputation in the international construction market," he added.

Some 60 per cent of the RM3.3 billion order book is from overseas, and 40 per cent of it comes from jobs in the Middle East.

By New Straits Times

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