KUALA LUMPUR (April 23): PRG Holdings Bhd (KL:PRG) — a manufacturing, property development and construction group with a market value of about RM39.2 million — will partially recover the debt owed to its construction unit by a developer through the transfer of 12 completed condominium units worth RM13.73 million.
In a Bursa Malaysia filing on Thursday, PRG said its wholly-owned subsidiary Premier Construction (International) Sdn Bhd (PCI) had entered into a settlement agreement with developer Premier De Muara Sdn Bhd (PDM) to facilitate the partial recovery of outstanding debt amounting to RM37.17 million.
Under the agreement, PDM will transfer 12 completed units at Picasso Residence in Kuala Lumpur to PCI or its nominees at an agreed value of RM1,066 per sq ft. These units have a combined built-up area of 12,880 sq ft.
PRG said the remaining RM23.44 million owed by PDM will be pursued through further negotiations and/or other means.
The transfer will be completed through separate sale and purchase agreements and memorandums of transfer, with transfer and registration costs to be shared equally between both parties.
The debt arose from PCI’s appointment as the main contractor for the 472-unit Picasso Residence project in Kuala Lumpur under a Letter of Award dated May 30, 2022.
PRG said the board had considered the location and attributes of the properties, which are in a strategic and high-demand area with established infrastructure and amenities, as well as prevailing market conditions, recent comparable transactions, and the commercial benefits of converting the outstanding receivable into tangible assets with potential for value realisation.
“On this basis, the board believes that the proposed settlement provides a reasonable avenue for the company to recoup the outstanding amount over time, while mitigating further credit exposure,” it said.
PRG said the proposed settlement is expected to be completed in the second quarter of 2026, barring any unforeseen circumstances.
Its shares closed unchanged at eight sen on Thursday.