KUALA LUMPUR (June 19): OCR Group Bhd’s 40%-owned associate company Landasan Surimas Sdn Bhd has entered into a joint-venture (JV) agreement with Perbadanan Kemajuan Negeri Pahang (PKNP) to set up a 70:30 JV named Taraf Raya to provide mechanical and civil works relating to the East Coast Rail Link (ECRL) project within Pahang.
In a statement today, OCR said the works (excluding tunnelling works) are subject to the final contract to be entered among Taraf Raya, Malaysia Rail Link Sdn Bhd and China Communications Construction (ECRL) Sdn Bhd.
OCR said it had also been appointed by Yayasan Pahang to undertake a project management consultation role, which entails overseeing Yayasan Pahang’s affordable housing scheme in the state, encompassing over 25,000 residential units over the next 15 years.
It said this includes OCR’s PRIYA Scheme Kuantan development, which is expected to be completed in 2021.
OCR said the collaboration with PKNP will promote the interest of the Pahang state and its people to be part of long-term urbanisation, and assure that home-grown contractors reap benefits for sustainable growth of the larger community upon the completion of the ECRL.
This is also aligned with OCR’s growth strategy of building a stronger recurring income stream within its current scope of operations in property development, construction and project management consultation. The group is currently transforming its business strategies to focus on a more sustainable earnings base.
At the midday break today, OCR was up 11.76% or five sen to 47.5 sen, giving it a market capitalisation of RM167.27 million.