ArthaLand, China Railway, Knusford Berhad partner for Cebu infra deal
MANILA, Philippines – Boutique property developer ArthaLand Corporation tapped the subsidiary of China Railway Group Limited and Malaysia-based Knusford Berhad for the construction of its 38-storey office development in Cebu, which has a price tag of $166 million.
Po family-led ArthaLand told the Philippine Stock Exchange on Monday, February 27, that it signed an agreement with the Chinese and Malaysian firms for the engineering, procurement, and construction (EPC) of its Cebu Exchange project.
The Cebu Exchange project is a 38-storey office building which will rise on an 8,440-square-meter property. (READ: Philippines shopping for 'nice' China-funded infra deals)
Under the agreement, China Railway Dongfang Group and Knusford Berhad will form a joint venture company in the Philippines to execute the EPC contract.
The collaboration among the 3 companies will "bring together strengths in design, building construction, project management, and expertise in the Philippine property sector," the Po-led developer said in its disclosure. (READ: PH contractors eye up to $100-B infra deals with Chinese firms)
*China Railway Dongfang Group is a wholly owned subsidiary of China Railway Group Limited, which is one of the largest construction conglomerates in the world.
It is responsible for over 60% of railway construction in China, aside from major projects for the construction of bridges, tunnels, airports, high-rise buildings, and municipal facilities.
Meanwhile, Knusford Berhad is a publicly-listed Malaysian company involved in major construction works, property development, and investments.
It also provides machinery reconditioning; sales and rental of light, medium, and heavy machinery and equipment; as well as trading of building materials.
Cebu Exchange is their latest venture here in the Philippines. It is designed to accommodate information technology and business process management (IT-BPM) locators that are expanding their operations in the region.
It will be the first and only Grade-A office building in Cebu on target to achieve dual green building certification from the United States Green Building Council's Leadership in Energy and Environmental Design (LEED) program as well as from the Philippine Green Building Council's Building for Ecologically Responsive Design Excellence (BERDE) program.
The share price of ArthaLand on Monday closed higher by 13.6% to P1.33 per each. – Rappler.com
*Editor's note: An earlier version of the article states that China Railway Group Limited is affiliated with China Communications Construction Company Limited (CCCC). China Railway Dongfang Group is a wholly owned subsidiary of China Railway Group Limited, but not in any way associated with CCCC, ArthaLand clarified.