Nestcon wins RM243 mil contract from Exsim for Penang serviced apartment project

PETALING JAYA (Aug 6): Nestcon Bhd has secured a RM243 million contract from Exsim Waterfront Sdn Bhd to undertake the main building and infrastructure works for a 57-storey serviced apartment project in George Town, Penang.

In a Bursa Malaysia filing on Wednesday (Aug 5), the construction group said its wholly owned subsidiary, Nestcon Builders Sdn Bhd, had accepted a letter of award (LOA) dated Aug 5 for the project at PT 224 (Tanah Tebusguna Plot A1-8), Section 8, Bandar George Town.

Construction is scheduled to commence on Jan 18, 2027 and be completed on Dec 17, 2029 after a 35-month construction period. The project carries a 27-month defects liability period from the date of practical completion.

The contract is expected to contribute positively to Nestcon's earnings per share, net assets per share and gearing over the project's duration, the company said.

The company said it does not foresee any exceptional risks beyond those normally associated with construction projects. It added that the contract does not require shareholder or regulatory approval, and that none of its directors, major shareholders or persons connected with them has any interest in the award.

The latest award follows a RM74.52 million contract secured from Exsim MX4 Sdn Bhd on Aug 3 to build a 28-storey affordable apartment project in Kwasa Damansara, Selangor, bringing the combined value of the two Exsim contracts secured this week to RM317.52 million.

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