Chuan Huat inks MoU to supply building materials worth RM200m

KUALA LUMPUR (Dec 20): Chuan Huat Resources Bhd is seeking to clinch a deal to supply building materials worth up to RM200 million for a project in Kuala Lumpur with a gross development value of over RM2.5 billion.

The group said its indirect wholly-owned subsidiary Chuan Huan Industrial Marketing Sdn (CHIM) today signed a memorandum of understanding (MoU) with Akisama Construction Sdn Bhd (ACSB) and Impianika Development Sdn Bhd (IDSB).

“The MoU is to establish the principal supplier for the building materials for the construction of a mixed development known as Residensi Bandar Razak (RC Residences),” Chuan Huan said in a filing with Bursa Malaysia yesterday.

ACSB and IDSB are members of the Akisama group, an established construction player.

ACSB is the main contractor for the construction of RC Residences, comprising 12 blocks of buildings, featuring 5,748 units of service apartments and 121 units of two-storey shop offices. The project is located on a leasehold land, measuring 79,261 square metres along Jalan Sungai Besi.

IDSB, meanwhile, is the developer of the project and the beneficial owner of the land.

Chua Huan said under the MoU, IDSB has also agreed to sell to CHIM, six units of shop offices for RM15.59 million

It added that the MoU will pave way for further discussions between the group and Akisama, to benefit both parties.

Chuan Huat’s shares were last traded at 30 sen, valuing the group at RM50.6 million. — theedgemarkets.com

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