I learned that property companies sometimes use assets such as completed condominium units instead of cash to settle outstanding debts, especially in the construction industry. In this case, PRG Holdings Bhd’s construction subsidiary accepted 12 condominium units at Picasso Residence in Kuala Lumpur as partial payment for unpaid construction fees owed by the developer.
The article explained that PRG’s wholly-owned subsidiary, Premier Construction (International) Sdn Bhd (PCI), was appointed as the main contractor for the Picasso Residence project. As of March 31, 2026, the developer, Premier De Muara Sdn Bhd (PDM), owed PCI a total of RM37.17 million. To reduce this debt, PDM agreed to transfer 12 completed condominium units worth RM13.73 million as part of the settlement.
I also learned that the 12 units include 10 Type A units and two Type B units. Type A units are smaller with two bedrooms and two bathrooms, while Type B units are larger with three bedrooms, a utility room, and more parking spaces. Both were valued at RM1,066 per square foot, which PRG said is reasonable because nearby properties are sold within the range of RM950 to RM1,200 per square foot.
Another important point is that this arrangement does not require PRG to spend cash. Instead, the company receives completed property assets that may later be sold or held for investment. However, there are still risks such as market price changes and maintenance costs. PRG believes these risks are manageable because Picasso Residence is located in a strategic area with strong demand from both investors and homebuyers.
From this article, I learned that contra arrangements are one way businesses recover debts when direct cash payment is difficult. It also shows how property can serve as a valuable financial asset in corporate settlements. This reflects how flexible financial strategies are important in the real estate and construction sectors.
Vietnam