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KUALA LUMPUR (Aug 30): WCT Holdings Bhd has bagged a contract worth RM840 million for the construction and completion works relating to the light rail transit Line 3 (LRT3) from Bandar Utama to Johan Setia.
The construction firm has also entered into an agreement to jointly develop the tract in the Tun Razak Exchange (TRX) it bought in October 2015.
In a filing with Bursa Malaysia yesterday, WCT said its wholly-owned subsidiary WCT Bhd accepted the letter of acceptance (LoA) from Prasarana Malaysia Bhd, and the works are expected to be completed within 33 months from the date of the LoA.
“LRT3 is a double-track rail alignment of approximately 37km long with 26 stations covering the areas of Bandar Utama, Shah Alam and Klang, before terminating at Johan Setia in Klang,” said WCT.
According to a separate filing yesterday, WCT will be partnering with Singapore’s CCCG Overseas Real Estate Pte Ltd (CORE) to develop the land in the TRX that it bought for RM223 million. The tract is held by WCT Precious Development Sdn Bhd (WCTPD).
WCT’s wholly-owned subsidiary WCT Land Sdn Bhd (WCTL) had entered into a shareholders’ agreement (SA) with CORE, which will be working together with WCTPD. WCTPD is a wholly-owned subsidiary of WCTL.
“The proposed joint investment is in line with the company’s current ongoing de-gearing initiatives to reduce the capital commitments on land banking and property development,” said WCT.
Pursuant to the SA, WCT said CORE has nominated CORE (Singapore) TRX Investment Pte Ltd (CORE SPV) and China Communications Construction Co (M) Sdn Bhd (CCCC [M]) as the new shareholders of WCTPD to subscribe an 80% stake in WCTPD or 200 million new shares for RM200 million.
Hence, after the exercise, WCT said, CORE SPV, WCTL and CCCC (M) will hold stakes of 65%, 20% and 15% respectively in WCTPD.
WCT said the proceeds of the subscription of shares by WCTL, CORE SPV and CCCC (M) will be utilised as repayment to the advances from WCT, for acquisition and development of the land from KLIFD Sdn Bhd.
Barring unforeseen circumstances, WCT said the proposed joint investment is expected to be completed by the fourth quarter of 2017.
This article first appeared in The Edge Financial Daily, on Aug 30, 2017.
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