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PECD announces proposed venture with Dubai Investment Group and Dubai Properties.

 
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23 Jun 2007

Main board-listed construction, energy and development company, PECD Berhad announced it has signed a Heads of Agreement with the Dubai Investment Group (DIG) and to formalise their intention to enter into a tripartite joint venture. The JV would see the two Dubai Holding entities each taking a 35 percent stake of the PECD's Dubai based outfit, PECD LLC. PECD Berhad would hold the remaining 30 percent share.

DIG, currently a substantial shareholder of PECD, is the global financial investor of Dubai Holding. Headquartered in Dubai, UAE, with local offices in New York, London, Hong Kong and Kuala Lumpur, DIG focuses on long and short-term investments with the potential to deliver exceptional and sustainable returns. It is structured as a conglomerate of investment companies with core investment expertise in the Industrial sector, Finance, Global Securities, Real Estate and Hospitality. The Group creates and manages a diversified and rapidly expanding portfolio of direct and indirect investments.

Dubai Properties operates with the express aim of conceiving communities that add value for the customer and contribute towards the growth of Dubai. The company's portfolio of projects is diverse and represents the highest quality real estate in the region. It includes Jumeirah Beach Residence, Business Bay, The Villa, Culture Village, and Tijara Town.

Al-Fattan Towers comprise of a 52-storey residential tower and a 10-storey office building.
Al-Fattan Towers comprise of a 52-storey residential tower and a 10-storey office building.

PECD Berhad has established its presence in the United Arab Emirates, primarily in Dubai, where it is currently involved in three major construction projects, the Al-Fattan Mixed Development comprising of a 52-storey residential tower and 10-storey office building; the apartment blocks for the on-going Movenpick Hotel & Spa and Oceana Residences project on the prestigious Palm Jumeirah Island and the Movenpick Deira Hotel and Centre Residences in Dubai city. PECD's maiden project in the Arabian Gulf city was the construction of the four Gate Precinct Buildings for the Dubai International Financial Centre that was completed in August 2006. The total value of work that has been completed and currently undertaken by PECD in Dubai totals US$ 250 million.

The joint venture between PECD and the Dubai Holding owned companies is a strategic move that would benefit all parties involved. For PECD, the strategic venture would allow it to consolidate and expand its international business in the United Arab Emirates (UAE) as well as other countries in the Middle East. Upon completion of the joint venture, PECD LLC is set to undertake construction and property development projects for DIG owned companies as well as projects for Dubai Properties. Under the proposed joint venture agreement, PECD LLC is proposed to be recapitalised to US$ 54 million from US$ 82,000.

The proposed venture between PECD, DIG and Dubai Properties is yet another strategic action taken by the Board and Management of PECD Berhad under its business turnaround initiatives to improve and rationalise its businesses and investments whilst continuing to provide long-term sustainable growth. PECD's core strategies moving forward include, amongst others, to focus on greater internationalisation of its services and capitalise on its learning curve abroad. Since 2004, PECD has to date ventured into overseas markets like the UAE, Indonesia and Sudan.



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