Builder Nestcon partners Hatten Land for solar PV venture
KUALA LUMPUR (Sept 15): Construction services provider Nestcon Bhd is partnering with Singapore-listed property developer Hatten Land Ltd to jointly explore and pursue business opportunities in the solar photovoltaic (PV) sector in Malaysia.
In an exchange filing, the newly listed Nestcon said its wholly owned Nestcon Sustainable Solutions Sdn Bhd (NSS) has inked a strategic partnership agreement with Hatten Land's wholly owned unit, Hatten Commercial Management Sdn Bhd (HCM).
Under the agreement, NSS and HCM will set up a joint venture and/or consortium with other potential partners to secure, supply, construct, develop and manage solar PV projects (turnkey solar projects) in Malaysia.
The agreement shall remain valid for one year or until the signing of definitive agreement(s) for their business plans or termination of the agreement by the parties. The agreement may also be mutually extended.
The partnership's first rooftop turnkey solar project is the installation of 6,373 solar panels to generate up to 3.19 megawatt-peak (MWp) at the Dataran Pahlawan Melaka Megamall in Melaka.
"Similar turnkey solar projects will follow suit as well as other commercial properties owned or managed by HCM and its related corporations," Nestcon said in a statement.
NSS and HCM will also be exploring strategic collaboration with more potential partners that could accelerate its venture in the solar industry, it said, which includes expanding into building large-scale solar PV facilities to generate about 100 MWp in phases by using current and/or securing future land reserve in Malaysia.
"We are pleased to form this strategic relationship with Hatten Land, one of the leading property developers in Malaysia, to foray into the renewable energy industry. We have deep technical know-how and experience in infrastructure construction projects, which would come in handy in our upcoming turnkey solar projects.
"Coupled with Hatten Land's expansive presence in the property development sector, we believe this strategic partnership will allow us to establish a solid footing in the renewable energy industry. We are excited to work alongside Hatten Land to onboard more solar-related projects moving forward," Nestcon group managing director Datuk Dr Lim Jee Gin said.
Nestcon is also exploring other opportunities within the renewable energy industry such as hydro projects, he said.
"Backed by our vast experience in handling engineering, procurement, construction and commissioning (EPCC) projects across various industries, we are confident that Nestcon is well positioned to capitalise on the upward trajectory of the renewable energy space," he said.
Nestcon's share price rose 1.41% or half a sen to settle at 36 sen on Wednesday, giving the company a market capitalisation of RM231.78 million. Listed on June 29, the stock has gained 28.6% from its initial public offering price of 28 sen.