PROPERTY developer Arthaland Corp. (ALCO) said on Monday it has signed an engineering, procurement and construction (EPC) contract with a unit of China Railway Group Ltd (CREC) and Malaysia’s Knusford Bhd for its 38-story office tower project in Cebu.
In a disclosure to the Philippine Stock Exchange (PSE), ALCO said it signed an EPC contract with China Railway Dongfang Group (CRDG), a unit of China’s CREC, and Knusford Bhd for general construction works as well as interior fit-out and interior furnishing services for the Cebu Exchange Tower project.
CRDG and Knusford will form a joint venture company in the Philippines to execute the EPC contract, the statement said.
“The collaboration among the three groups brings together strengths in design, building construction, project management and expertise in the Philippine property sector,” Arthaland said.
CRDG is a wholly owned subsidiary of CREC, one of the largest construction conglomerates in the world with a presence in 60 countries. CREC is responsible for 60 percent of the railway construction works in China on top of major projects such as bridges, tunnels, airports, high-rise buildings and municipal facilities.
Knusford is a publicly listed Malaysian construction firm engaged in major construction works and property development and investments.
The Cebu Exchange tower is the first venture for CREC and Knusford in the Philippines. It will rise on an 8,440-square meter property within the Cebu IT Park to cater to information technology and business process management (IT-BPM) locators who are expanding their operations in Cebu.
The Cebu office tower is one of five projects in ALCO’s pipeline for the next six years. The company has programmed P30 billion for capital expenditure towards 2022 in a bid expand its current footprint of 110,000 square meters (sqms) of floor space to more than 520,000 sqms by 2022.
Other projects in the pipeline are: a campus-type residential project in Binan, Laguna; the 30-storey Arthaland-Century Pacific Tower in Bonifacio Global City (BGC); a 200-unit high-rise residential condominium project in Makati; and an office tower in the south of Metro Manila.
In December last year, the company raised P2 billion from the sale of preferred shares under a P3-billion, three-year shelf offering approved by the Securities and Exchange Commission (SEC).
ALCO is engaged in property development of residential, commercial, leisure, and industrial projects.