LFE’s wholly owned unit to take over main building works of Damansara project from 51%-owned Cosmo

• The entire contract was originally valued at RM90 million and awarded to Cosmo in November 2021.

KUALA LUMPUR (July 4): Construction and mechanical and electrical (M&E) services provider LFE Corp Bhd is taking over the main building works of the phase two of a mixed development in Damansara that comprises a serviced apartment and a SOHO block with an office cum medical/health centre here for RM105 million, from its 51%-owned unit Cosmo Property Management Sdn Bhd.

The job will now be undertaken by LFE’s wholly owned LFE Engineering Sdn Bhd, which accepted the letter of acceptance from PD Ara Sdn Bhd for the project last Friday, LFE's bourse filing showed.

The entire contract was originally valued at RM90 million and awarded to Cosmo in November 2021.

But the terms of the contract to Cosmo has now been revised to only the sub-structure works that include the piling, pile cap, secant piled wall, basement and associated works for RM34.6 million.

“For removal of doubt, Cosmo shall no longer be the contractor for the main building work and any other work relating thereto,” LFE said in a separate filing.

LFE, however, did not disclose as to why Cosmo has to be taken off the main building works.

The project involves the construction of an 18-storey serviced apartment block, an 11-storey SOHO block, and seven storeys of office and medical/health centre — which include five storeys of commercial podium and carpark space, one semi-basement parking lot, and two levels of basement parking.  

LFE executive chairman Chuah Chong Ewe, who is also the group’s substantial shareholder with a 5.0885 interest — of which 3.504% is directly held — has an interest in the contract, said LFE.

The job will start at a date to be notified by PD Ara, and has to be completed in 30 months.