KUALA LUMPUR (Sept 9): O&C Resources Bhd’s 70%-owned subsidiary Pangkal Teguh Sdn Bhd (PTSB) has been appointed as the project management consultant by Yayasan Pahang for a proposed affordable housing development scheme comprising 25,000 residential units in Pahang.

According to its bourse filing, PTSB is expected to earn an average of 4.8% of the gross development value of the said project, the sum of which it did not disclose in the document.

Nevertheless, the group estimated it could net about RM91 million from the management contract over the seven-year construction period, which will contribute positively to its earnings for the financial year ending July 31, 2017.

PTSB will provide project management and consultancy services for the affordable housing development scheme in major towns in Pahang in phases, and fees received by PTSB would be based on the nature of works involved and scope of services.

The fee is RM5,500 for each property selling at RM120,000 and below, and RM8,000 for each property selling at between RM120,000.01 and RM150,000.

There is no financial commitment by O&C to PTSB on the said contract. PTSB will source its own financing and O&C only will provide technical support to PTSB.

In a statement, O&C managing director Billy Ong said the project would serve as a catalyst for the group’s next phase of growth and provide earnings visibility to the group over the next seven years.

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This article first appeared in The Edge Financial Daily, on Sept 9, 2016. Subscribe to The Edge Financial Daily here.

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