PR1MA Renews Agreements With Developers Worth RM3.29b
Perbadanan PR1MA Malaysia (PR1MA) has renewed partnership agreements worth RM3.29 billion with 17 development partners to reaffirm its commitment to deliver affordable quality homes to the rakyat.
The renewed agreement outlines an improved business model that will enable PR1MA and the developers to more effectively deliver on the mandate to provide affordable housing for the rakyat, in line with the government’s national housing agenda.
“The renewed partnership between PR1MA and its developers paves the way for the parties involved to work together strategically, including the sales and marketing aspects of the projects, to complete PR1MA projects within the stipulated time and budget,” it said in a statement yesterday.
The successful completion of the identified PR1MA projects will support the government’s aspiration to provide one million affordable homes within the next 10 years.
PR1MA acting chief executive officer Mohd Nazri Md. Shariff said under this new partnership agreement, greater responsibilities are placed on both parties in the development of the homes so as to improve PR1MA’s financial position and resolve the issue of unsold residential units and delayed payments.
“It includes extending the sales and marketing functions to the developers, as well as enhancing collections from buyers to ensure that developers’ monthly progress claims are paid,” he said.
He said this supersedes the previous agreement where developers and contractors are only responsible in building houses and are paid a monthly progress payment by PR1MA.
“During the past one year, PR1MA had undergone a due diligence process, corporate restructuring and management change process, which was necessary to ensure that we are aligned to meet Ministry of Housing and Local Government’s (KPKT) objective in ensuring sufficient, holistic and affordable homes are available for the rakyat,” Mohd Nazri said.
During the Home Ownership Campaign 2019, PR1MA homes continue to garner an overwhelming response from homebuyers with sales bookings of 11,737 homes and a net gross development value (GDV) of RM3.5 billion to date, despite the challenging property market.
With support from the KPKT and other stakeholders, there are currently 94,191 units under various ongoing PR1MA projects nationwide of which 13,359 units have been completed to date with another 42,777 units currently under various stages of construction.
PR1MA is targeting to complete 4,082 units by the end of this year.
PR1MA was established under the 2012 PR1MA Act to roll out a thorough and extensive programme in building quality houses for the middle-income group who live in the urban and suburban areas, with a household income of between RM2,500-RM15,000 a month.
PR1MA is the only authorised party entrusted to develop, manage and maintain PR1MA housing communities to provide homeowners with comfortable and quality living in a harmonious community.