OCR secures RM324mil Putrajaya project

PETALING JAYA: O&C Resources Bhd (OCR) has won a RM324mil contract from Damansara Realty Bhd (DRealty) to undertake a civil servants housing project (PPA1M) in Putrajaya.

In a filing with Bursa Malaysia, OCR said it had received a letter of award from Damansara Realty (Johor) Sdn Bhd (DRJ), an indirect wholly owned subsidiary of DRealty, for the project, which will be built on 11.89 acres.

OCR said the duration of the project is expected to be over four years. “OCR will source its own financing for the project,” it said.

The project will consist of two parts, which is the PPA1M portion and non-PPA1M or commercial portion.

For the non-PPA1M portion, OCR said DRJ is entitled to 20% of the profits while the remaining 80% would go to OCR.

It said if the cumulative profits for DRJ is less than RM10mil, OCR shall pay DRJ the difference.

In respect of the PPA1M portion, the terms on the profit earned have yet to be finalised and agreed upon.

In a separate filing, DRealty said the project is expected to contribute positively to the group’s revenue and earnings for the financial period ending Dec 31, 2018 and beyond.

“The project is not expected to have any material effect on the gearing of DRealty and also have no impact on the share capital and the substantial shareholdings of the company,” it said.