In a filing with Bursa Malaysia, O&C said its 70%-owned subsidiary Kita Mampan Sdn Bhd had, through its associate company AES Builders Sdn Bhd, had inked a master en bloc purchase agreement with PR1MA and Mampan ESA (Melaka) Sdn Bhd to build and develop 554 residential units, with five apartment blocks of 11 storeys each and one apartment block of 12 storeys.
The contract is for a period of three years, the filing stated.
O&C said the contract is expected to contribute positively to earnings and net assets of the group for the financial year ending July 31, 2017.
O&C, formerly known as baby product, condom and toy manufacturer Takaso Resources Bhd, ventured into the property development sector after purchasing a 50% stake in AW Impian Land Sdn Bhd (AWIL) for RM6 million in 2015.
AWIL owns a 0.3ha leasehold land in Petaling Jaya, on which Takaso aims to carry out a RM45.5 million residential project comprising three blocks of three-storey town houses.
The project is expected to commence in a year, and be completed by 2018.
O&C shares closed one sen or 2.53% lower at 38.5 sen yesterday, with a market capitalisation of RM87.97 million.
This article first appeared in The Edge Financial Daily, on Aug 3, 2016. Subscribe to The Edge Financial Daily here.
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