Sales of Malaysian projects remain resilient, says China’s Country Garden

Country Garden’s Forest City project in Johor. (Reuters pic)

PETALING JAYA: Chinese developer Country Garden Real Estate (CGRE) says the sales of its Malaysian projects remain resilient following an “encouraging” 2019.

In a press statement, Country Garden, which is developing Forest City, also said despite the dip in the global market and “chaos” in the financial market due to Covid-19, it has just issued three tranches of Islamic bonds, or sukuk, totalling RM495 million.

“These issuances fully reflect the confidence that Malaysian capital markets have in both Country Garden Group and CGRE’s long-term development in Malaysia.”

It added that in September, RAM Ratings had reaffirmed CGRE’s Islamic Medium-Term Note programme’s AA3/Stable rating.

The programme, established in 2015, was the first ringgit sukuk issued by a China-linked corporate entity.

Country Garden said its projects in Malaysia – two in the Klang Valley and three in Johor including Forest City – are supported by a strong cash flow and healthy balance sheet.

Forest City, built on four artificial islands at the cost of billions of ringgit, is expected to be completed in around 20 years and will accommodate some 700,000 people.

“Moving forward, the Country Garden group will continue to explore more investment opportunities in Malaysia,” it said.

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