Catenary Capital and Rivertree STF Synergies Berhad sign RM600 million HoA for 28,800-bed CLQ developments in Klang Valley

KUALA LUMPUR, March 3 (Bernama) -- Catenary Capital Sdn Bhd has entered into a Heads of Agreement (HoA) with Main Market-listed Rivertree STF Synergies Berhad (RSSB), formerly known as Sinmah Capital Berhad, and Q Centre Management Sdn Bhd (QCM) for the development of up to four Centralised Labour Quarter (CLQ) facilities in the Klang Valley, with an aggregate indicative development value of approximately RM600 million and a total capacity of 28,800 beds.

The HoA marks Catenary Capital’s first investment since its formation and its entry into Malaysia’s CLQ sector. The projects will be executed via Catenary Capital’s wholly owned investment vehicle, Asetra Sdn Bhd. 

The first project, Q Centre @ Teratai in Meru, Klang, will comprise 9,000 beds with an indicative development value of approximately RM171 million. The remaining three proposed CLQs, with a value of RM429 million, are expected to provide a further 19,800 beds, subject to finalisation of sites and definitive agreements. 

The HoA establishes the framework for collaboration among the parties, with definitive agreements to be finalised in stages subject to customary approvals and commercial arrangements.

Selangor remains Malaysia’s largest industrial state, with a high concentration of manufacturing, logistics and export-oriented activity. The Klang Valley industrial corridor employs a significant portion of Malaysia’s registered foreign workforce, which numbers approximately 2.4 million nationwide based on recent government disclosures.

The Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446), which mandates minimum accommodation standards for foreign workers, has been more actively enforced in recent years, increasing compliance expectations for employers and supply chain participants. 

While centralised labour quarters and purpose-built worker accommodation facilities have expanded in response, industry observers note that supply of Act 446-compliant accommodation continues to lag demand in established industrial zones.

Hizzan Hamid, Founding Partner of Catenary Capital, said the transaction represents the firm’s first investment since its formation and reflects its strategy of deploying institutional capital into structurally under-supplied segments of the real estate market.

“Act 446 has created a clearer compliance framework, and employers are under greater scrutiny to ensure that accommodation standards are met. At the same time, Selangor’s industrial base continues to expand. 

There remains a visible supply gap for professionally managed, compliant facilities in key growth corridors such as Klang,” he said. 

He added that worker accommodation represents a segment where institutional ownership can introduce greater discipline and governance standards, particularly in areas where capital participation has traditionally been fragmented.

“Workforce housing affects stability, productivity and reputational risk. Institutional ownership enables consistent operating standards and asset oversight, while supporting labour compliance and supply chain standards for employers,” he said. 

Executive Director of RSSB, Dato’ Simon David Leong, said the HoA marks a significant milestone for the Group as it expands its role within the CLQ segment.

“This mandate marks a defining milestone for RSSB and establish us as a trusted CLQ infrastructure developer. We see strong structural demand emerging within the CLQ segment as industries increasingly prioritise compliant, well-managed and scalable worker accommodation solutions. We have identified a number of job opportunities in this space and views this segment as a strategic growth pillar moving forward,” he said.

He added that RSSB’s role as a turnkey developer under the framework reinforces its construction and delivery capabilities within the sector.

“As the appointed turnkey developer, we will be responsible for the full scope of design and construction across the proposed facilities, working closely with our partners to ensure disciplined execution and timely delivery,” he said.

The RM600 million development value for the four CLQs is expected to provide RSSB with clear earnings visibility over the next 3 years.

QCM will oversee operational management of the CLQ facilities upon completion. 

“QCM has plans to grow into one of the largest CLQ operators in Selangor. Being their trusted partner, I believe RSSB is strategically positioned to participate in their long-term expansion roadmap,” he said.

About Catenary Capital Catenary
Capital is an independent private real estate investment platform with a mandate spanning Malaysia, the United Kingdom and Europe. The firm operates within established institutional governance standards and works with Malaysian institutional investors to deploy capital into selected real estate strategies domestically and internationally.

Registered with the Securities Commission Malaysia, Catenary Capital was established through a partnership between Foster Capital Sdn Bhd and Castleforge Partners Limited, integrating local execution capability with global investment experience. The platform applies governance-led underwriting, disciplined capital deployment and active asset management to deliver resilient, risk-adjusted returns across market cycles.

About Rivertree STF Synergies Berhad
Listed on the Main Market of Bursa Malaysia, Rivertree STF Synergies Berhad (formerly known as Sinmah Capital Berhad) adopted its current name effective 3 February 2026. Following the disposal of its entire poultry business in 2022, the Group is now principally involved in residential and commercial property development, as well as provision of construction services.

Through its wholly-owned subsidiary, RSSB Builders Sdn Bhd, the Group holds a Grade 7 (G7) contractor licence issued by the Construction Industry Development Board (CIDB), which qualifies it to tender for and undertake construction projects of unlimited contract value. The Group is currently involved in property development projects in Melaka, Johor and Selangor, and is expanding its construction portfolio to include turnkey developments of Centralised Labour Quarters in Klang Valley area.

Bursa stock code: RSSB / 9776

SOURCE: Capital Front Plt

FOR MORE INFORMATION, PLEASE CONTACT: 
For Catenary Capital media inquiries:
Nextdor Property Communications
Name: Anne Lourdes, Director
Tel: +019-465 2169 
Email: annelourdes@nextdor.com.my

For Rivertree STF Synergies Berhad media inquiries:
Capital Front Investor Relations
Name: Dwayne Teng, Senior Associate
Tel: ​+019-265 1788
Email: dwayne@capitalfront.biz

--BERNAMA