Nestcon bags RM154 million job in Kuala Lumpur

• Nestcon said its wholly-owned subsidiary Nestcon Builders Sdn Bhd had accepted a Letter of Award (LOA) from Solaris Ceria for the main building works of one block of 52-storey office suites and serviced apartments.

KUALA LUMPUR (Feb 21): Construction and renewable energy service provider Nestcon Bhd has bagged a RM154 million contract from privately-held property development firm Solaris Ceria Sdn Bhd to build office suites and serviced apartments on Jalan Duta Kiara, Mont’Kiara, here.

In a filing with Bursa Malaysia on Tuesday (Feb 21), Nestcon said its wholly-owned subsidiary Nestcon Builders Sdn Bhd had accepted a Letter of Award (LOA) from Solaris Ceria for the main building works of one block of 52-storey office suites and serviced apartments.

It added that the overall completion for the contract works is 36 months and is expected to be completed by Feb 28, 2026.

"The acceptance of the LOA by Nestcon Builders to undertake the contract works is expected to contribute positively to the group's net assets per share, earnings per share and gearing throughout the duration of the contract works," said Nestcon.

In a separate filing, Nestcon announced that Nestcon Builders has aborted plans to undertake construction of an integrated offsite scheduled wastes recovery facility in Kerteh Biopolymer Park, Kemaman, Terengganu.

It said Nestcon Builders had delivered a termination notice to Greenverse Sdn Bhd, confirming mutual agreement to terminate the contract due to the possession of the site for the construction of the works which has yet to be granted in view of the increase in the price of construction materials required for the completion of the proposed project.

The LOA was awarded in May last year.

"The termination of the LOA is not expected to have any material effect on the group's net assets, gearing, earnings and earnings per share for the financial year ending Dec 31, 2023. There is no cost incurred by Nestcon Builders from the LOA and/or project," Nestcon added.

Nestcon shares closed unchanged at 51.5 sen on Tuesday, giving it a market capitalisation of RM344.57 million.