Kerjaya Prospek unit bags mixed development contract

By ALIFAH ZAINUDDIN

Kerjaya Prospek Group Bhd’s wholly owned subsidiary, Kerjaya Prospek (M) Sdn Bhd (KPMSB), has accepted a letter of award from Kerjaya Prospek Property Sdn Bhd (KPPSB) for a RM438.78 million project in Jalan Puchong, Kuala Lumpur.

In a filing to Bursa Malaysia yesterday, the company said the contract will cover the construction of main building works for a proposed mixed-development project there.

“The project comprises one block of 25 storeys of offices and hotel, and two blocks of 53 storeys of serviced apartments on top of an 11-storey podium and four levels of basement,” the group said.

The contract is expected to commence on May 2, 2019, and completed on Nov 1, 2022.

Kerjaya Prospek said the acceptance of the contract is in the ordinary course of business of KPMSB and is undertaken on an arm’s length basis, based on normal commercial terms which are not more favourable than those generally available to the public.

“The contract further enlarges the group’s order- book and is expected to provide a steady stream of revenue for the group over the next four years. It will further increase and enhance the group’s existing orderbook,” it added.

The deal is projected to contribute positively to the earnings and net assets per share of the group for the financial years ending 2019 to 2022.

KPPSB is a company owned by Datuk Tee Eng Ho and Tee Eng Seng, who are both engaged in property development. The brothers are both the directors and major shareholders of KPPSB.

The contract is regarded as recurrent related party transactions of a revenue or trading nature pursuant to Bursa Malaysia Securities Bhd Main Market listing requirements which require shareholders’ approval.

The consent was obtained at the company’s AGM in May last year.