IREKA wins RM58.3m Affordable Housing Project in Terengganu

by TMR / pic credit: ANNUAL REPORT

IREKA Corporation Bhd’s wholly-owned subsidiary Ireka Development (Terengganu) Sdn Bhd has secured a contract worth RM58.3 million from Koperasi Permodalan Sahabat Terengganu Bhd (KOSAHABAT) for development project in Terengganu.

In a filing on Bursa Malaysia today, IREKA said the project comprised affordable and mixed housing developments on a 9.751 hectare piece of land in Dungun, Terengganu.

IDTSB is the appointed co-developer for this project. Construction works for the project are slated to commence on 20 December 2021 and are expected to be completed on 19 December 2024.

This proposed development in Kuala Abang will see 284 home units and 5 commercial units over the next three years. The three home variants to be built are targeted at the B40 segment.

“This latest contract win reaffirms the Group’s commitment to providing affordable housing for the underserved segments in Malaysia, and will continue to be a significant contributor to the nation’s property development sector. Over the years and before the COVID-19 pandemic, there was an obvious mismatch in the pricing and affordability. Hence, it is IREKA’s vision to build affordable homes that can assist the B40 segment in becoming homeowners,” said IREKA Managing Director Mohd Hasnul Ismar Mohd Ismail.

IREKA had successfully secured more than RM850 million in construction jobs over the last five months.

“Over the last five months, our new management team and the new strategies put in place has grown IREKA’s order book from RM470mil to more than RM1,362mil, which has enhanced our earnings visibility. These forward-looking steps also help us manage our cash flows and resources better as we take on more projects ahead,” said Hasnul.