KUALA LUMPUR: Nagamas International Bhd has teamed up with Chinese construction firm Zhiangxu Zhenda Construction Co Ltd to market and sell upcoming commercial and residential units in Huizhou city, China.
Nagamas’ wholly-owned subsidiary Nagamas International (HK) Ltd (NIHK) signed the marketing joint venture (JV) agreement with Zhiangxu Zhenda to market the Longji Blue Bay project currently being developed on a 0.74ha parcel of land, with built-up area of 3.73ha.
In an announcement to Bursa Malaysia yesterday, Nagamas said NIHK would invest a total of RM8 million, while Zhiangxu Zhenda would guarantee the progressive returns of the said investment and payment of RM2.8 million profits to NHIK by Jan 31, 2009.
“The board of directors is of the opinion that the JV will provide strong synergy to the parties concerned and the time is opportune for the group to embark on new business direction by taking a step forward with its investment in the Chinese market that the board foresee will further enhance the future earnings of the group,” it said.
According to the statement, Zhiangxu Zhenda’s core business includes industry and public utility infrastructure construction. It has completed more than 20 projects in Zhiangxu, Chongqing and Anhwei provinces since 2004.
Its fixed asset totals 40 million renminbi (RM18 million). Construction projects in hand that are expected to be completed in 2008 have a total gross development value of more than RMB200 million.
Nagamas said it would finance the investment by proceeds raised from the rights issue and special issue approved by its shareholders on Feb 28 and July 26, 2007, respectively.
By The EDGE MALAYSIA
Posts
No comments:
Post a Comment