Contract provides a boost to construction group’s outstanding orderbook to RM9.3b
By MARK RAO / Graphic By TMR
IJM Corp Bhd has been awarded the contract to construct Affin Bank Bhd’s 47- storey headquarters at Tun Razak Exchange (TRX) in Kuala Lumpur for RM505 million, boosting the construction group’s outstanding orderbook to RM9.3 billion.
The conglomerate involved in the construction and property businesses secured the contract via its wholly owned unit IJM Construction Sdn Bhd. The project from the lender would involve the construction of a Grade-A office building, consisting of a 43- storey office tower and seven storeys of parking space.
With a gross floor area of approximately 76,600 sq m, the headquarters is to be built on a 1.25-acre (0.5ha) site in the financial district. Construction is expected to take 26 months before scheduled completion by the end of 2020.
IJM MD and CEO Datuk Soam Heng Choon said the award from Affin Bank is a recognition of the company’s construction and development credentials.
“We are delighted to be working with yet another esteemed banking industry name. This contract reinforces our track record of building innovative and iconic high-rise projects in the city centre.” IJM Construct ion was awarded the building’s substructure contract in an earlier work package in November last year.
The private vehicle for IJM also won a RM500 million contract that same month for the construction of a 27-storey Menara Prudential office tower in the financial district of TRX. Scheduled to be ready early next year, this project is reportedly 93% completed and 84% tenanted.
The award follows IJM’s move in buying over Fairview Valley Sdn Bhd, a subsidiary of TRX City Sdn Bhd, who initially planned to build the purpose-built commercial building on a 1.18-acre plot in TRX.
Other ongoing Grade-A office tower projects undertaken by the conglomerate include HSBC Bank plc’s new Malaysian headquarters, Equatorial Plaza on Jalan Sultan Ismail, United Overseas Bank (M) Bhd’s Tower 2 on Jalan Raja Laut and Uptown 8 in Damansara Uptown.
All the projects are being undertaken by its unit IJM Construction.
IJM is also involved in the manufacturing and quarrying, plantation and infrastructure sectors and noted a weak start to its 2019 fiscal year after its profit close to halved on higher foreign-exchange losses and lower revenue base.
For its first quarter ended June 30, 2018, the company’s net profit slumped 48.2% yearon- year to RM62.76 million as revenue fell 1.4% to RM1.44 billion over the same period.
This was primarily driven by lower turnover from all business segments, excluding property development.