KUALA LUMPUR (Dec 20): O&C Resources Bhd (OCR) has bagged a RM155 million contract to develop a project located in Jalan Alam Sutera Utama, Bukit Jalil here at a gross development cost of RM131.75 million.

In a filing with Bursa Malaysia yesterday, OCR said its 70%-owned subsidiary Kita Mampan Sdn Bhd, through its associate AES Builders Sdn Bhd, last Thursday received a letter of award from Perbadanan PR1MA Malaysia to be the main contractor for the proposed project.

Kita Mampan holds a 49% stake in AES.

“OCR’s profit entitlement is calculated based on its equity interest held in AES, which is at 34.3% effective interest. [Thus,] the estimated profit attributable to OCR from the project is approximately RM7.97 million over the construction period,” said OCR in a statement yesterday.

“The project is expected to contribute positively to the earnings and net assets of OCR Group for the financial year ending July 31, 2017,” it added.

The proposed project comprises one four-level block of office shoplots with a health clinic, a 32-storey apartment block housing 320 units, a 21-storey apartment block with 140 units, four levels of podium parking, three levels of sub-basement parking, one level of multipurpose hall and one level of public facility.

OCR said the period for completion of the proposed project is 36 months.

“AES will source its own financing for the project, while OCR will provide technical support such as consultation on the project to AES as and when it requires in view of the vast experience in development of projects,” said OCR.

OCR shares closed unchanged at 40 sen yesterday, bringing a market capitalisation of RM95.38 million.

This article first appeared in The Edge Financial Daily, on Dec 20, 2016. Subscribe to The Edge Financial Daily here.

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