Central Global takes on mixed development job worth RM42m in Kedah

• In a filing on Tuesday (July 4), the company said its wholly-owned sub-subsidiary Central Global Development Sdn Bhd (CGD) signed the agreement with Menteri Besar Kedah Inc’s wholly owned subsidiary Permodalan Kedah Bhd (PKB).

KUALA LUMPUR (July 4): Central Global Bhd’s unit had signed a collaboration agreement with Kedah state government to develop a mixed project with a gross development value of RM42.3 million at Pendang, Kedah.

In a filing on Tuesday (July 4), the company said its wholly-owned sub-subsidiary Central Global Development Sdn Bhd (CGD) signed the agreement with Menteri Besar Kedah Inc’s wholly owned subsidiary Permodalan Kedah Bhd (PKB).

CGD is primarily involved in investment holding and buying, selling, renting and operating of self-owned or leased real estate of residential buildings and land.

While PKB is primarily involved in developing the state of Kedah in various fields including real estate development, construction, hospitality and mining.

“The project, spanning 11.7 acres of leasehold land, will see CGD undertake the responsibility of developing a mixed development comprising 20 units of two-storey shop/office lots, 46 units of two-storey terrace houses, and 53 units of 1-storey terrace houses,” the company said.

The project is expected to be completed within five years.

“The demand for residential properties in Kedah has continued to be encouraging and there is no better way for us to employ our construction expertise than to fulfill this demand,” said CGB executive director Jacky Lee.

He added the agreement is also a synergistic collaboration that fits well into the group’s expansion plan given CGB’s existing exposure in the construction sector in the northern region.

“In line with this plan, we continue to source for opportunities in both the domestic and regional markets to ensure a healthy replenishment of projects,” he added.

Currently, CGB is active in the residential property construction sub-sector in Penang through its wholly-owned subsidiary Proventus Bina Sdn Bhd.

The group is also making significant headway in the infrastructure construction sub-sector primarily in Sabah through its 70%-owned subsidiary RYRT International Sdn. Bhd.

To date, the group’s construction order book is recorded at RM318.8 million.

Central Global’s shares closed unchanged at RM1.54, valuing the company at RM231.09 million.