SunCon secures RM100mil construction job

PETALING JAYA: Sunway Construction Group Bhd (SunCon) has been awarded a RM100mil contract, bringing its total orders secured for the year to date to RM1.5bil.

The group said its subsidiary Sunway Construction Sdn Bhd (SCSB) has accepted a letter of award (LoA) issued by SA Architects Sdn Bhd, on behalf of Sunway Integrated Properties Sdn Bhd (SIPSB).

SIPSB is an indirect subsidiary of Sunway Bhd, which in turn is a major shareholder of SunCon.

The group said the LoA was in respect of main building works, including basement architectural as well as mechanical and electrical works, pedestrian bridges and associat- ed external works for the proposed development of a 22-floor building.

It said the building comprised three floors of commercial area, eight floors of office area, 11 floors of serviced apartments, pedestrian decks and four floors of basement carparks, located in Kuala Lumpur.

The duration of the project is about 29 months from the date of commencement, which is Nov 16, 2018, and is expected to be completed by April 30, 2021.

The group said the project was expected to contribute positively to its earnings from the financial year ending Dec 31, 2019, onwards.

It noted that the project was subject to the usual construction risk of fluctuations in the prices of materials.

However, it said, with the past experiences and expertise of SCSB in construction projects, this risk could be mitigated.

The project is a related-party transaction by virtue of Evan Cheah Yean Shin being a director and major shareholder of SunCon, as well as director of several subsidiaries and major shareholder of Sunway.

The group noted that it had obtained shareholders’ mandate for such recurrent related-party transactions entered into, or to be entered into, by SunCon and its subsidiaries with Sunway and its group of companies at its AGM on June 20, 2018.