PJI keen on more jobs with Amanah Raya
29/01/2007 NST By Sharen Kaur

CONSTRUCTION Group PJI Holdings Bhd is keen to work on more projects with Amanah Raya Bhd, capitalising on the government-linked company's plans to boost its real estate investment trust (REIT) value to RM1 billion by end-2008.

The Amanahraya REIT is backed by a common fund with a total size of almost RM6 billion, which gives it the resources to acquire new properties. The REIT is headed for a main board listing on February 26.

"Amanah Raya has a lot of building development plans and when they call for a tender, we will actively participate," PJI executive director Lim Chong Ling said.

He was speaking to Business Times after a joint-venture agreement signing ceremony between Amanah Raya and PJI in Subang Jaya on Saturday.

Amanah Raya and PJI are jointly developing the Jana Towers service apartment project in Subang Jaya, which is expected to be completed by end-2008.

This is the first joint venture between the two firms, Lim said, and PJI hopes to provide its construction, mechanical and engineering expertise to Amanah Raya's future projects.

Amanah Raya's existing contracts include building a head office building in Malacca for Telekom Malaysia Bhd and a shopping mall for Jaya Jusco.

Meanwhile, PJI is expected to receive a letter of award from Syarikat Perumahan Negara Bhd (SPNB) by June to build 2,300 units of medium-cost houses throughout Sabah. The contract is valued at RM70 million.

PJI was previously awarded two contracts by SPNB worth RM23 million collectively to build 1,000 houses.

Lim said PJI is expected to get another contract by year-end valued between RM20 million and RM30 million. The housing project will comprise 8,000 units.

"We plan to also build condominiums in Ho Chin Minh City, Vietnam. The project, worth US$49 million (RM171.50 million), is expected to be launched in the second half of this year," he said.

PJI signed a business corporation contract with the Minh Linh Group of Vietnam a month ago. PJI will have a 30 per cent stake in the project and the rest will be held by the Minh Linh Group.

"Its a profit-sharing contract and we will be the main contractors," he added.