Tuesday, 26 July 2016
KUALA LUMPUR: A joint venture (JV) between Bina Puri Holdings Bhd and Cahya Mata Sarawak Bhd yesterday received and accepted a letter of award from Lebuhraya Borneo Utara Sdn Bhd for the proposed development and upgrade of Pan Borneo Highway in Sarawak for a contract sum of RM1.36 billion.
The award is for Phase 1 of the construction of roads and bridges from Sg Awik to Bintangor Junction in Sarawak.
According to Bina Puri’s announcement yesterday, the contract is for a duration of 47 months.
The 70:30 JV is between PPES Works (Sarawak) Sdn Bhd (PPESW) and Bina Puri Sdn Bhd (BPSB).
The PPESW-BPSB JV was incorporated to undertake the contract as a condition imposed in the tender for the contract.
PPESW is the main construction arm of conglomerate Cahya Mata Sarawak, while BPSB is a wholly-owned subsidiary of civil and building construction group Bina Puri.
“With this award, the total projects secured by the group in 2016 are RM480.66 million. We are confident of more successful awards before year end,” said Bina Puri.
Packages worth up to RM10 billion are expected to be dished out for the 2,083km Pan Borneo Highway project connecting Sabah, Sarawak and Brunei. The cost of the project was reported at RM16 billion.
So far, two packages have been awarded, to the Zecon-Kimlun JV involving Zecon Bhd and Kimlun Corp Bhd worth RM1.5 billion and the Hock Seng Lee-Daya Maju JV (between Hock Seng Lee Bhd and Dhaya Maju Infrastucture [Asia] Sdn Bhd) worth RM1.7 billion.
Expectations for more jobs to be announced for the project have pushed prices of infrastructure and construction-related counters up recently.
Cahya Mata Sarawak topped the list, rising by 8.62% in the last one month to yesterday’s close of RM3.78, with a market capitalisation of RM4.06 billion. Year to date, it has fallen 25.75%.
Steel fabricator KKB Engineering Bhd, construction company Hock Seng Lee, power and telecommunication cable manufacturer Sarawak Cable Bhd (SCable) and property developer Naim Holdings Bhd have also seen active trade.
KKB Engineering rose 17.02% in the last one month to close at RM1.65 yesterday.
Over the last one month, Hock Seng Lee gained 7.83% to close at RM1.79 yesterday; SCable added 5.4% to close at RM1.38, while Naim Holdings saw a gain of 6.52% to its last share price of RM1.96.
Bina Puri has risen 10.83% over the last month to close at 41 sen yesterday, with a market capitalisation of RM99.25 million.
SOURCE: [THE EDGE FINANCIAL DAILY] http://tefd.theedgemarkets.com/2016/TEP/20160726acw1hp.pdf
KUALA LUMPUR: Bank Islam Malaysia Bhd signed a financing agreement with developer Urus Maju Ehsan (M) Sdn Bhd (UME) on Monday for two waqf land development projects worth RM15.5mil.
The first project comprises 164 condominium units and 12 shoplot units in Shah Alam covering 1,000 sq ft with a leasehold price of about RM350,000.
The second project involves the construction of 13 units of shop offices and 34 bazaar units in Klang.
The shop offices, covering 3,024 to 3,780 sq ft, have leasehold prices of between RM861,840 and RM1.1mil, while the 888 sq ft bazaar units are priced at RM250,000 each.
Speaking to the media on Monday, deputy chief executive officer Khairul Kamarudin said the financing agreement was the first collaboration between the bank and Urus Maju Ehsan.
“We hope to expand this relationship to partly finance the waqf land projects.
“In whatever projects the company is doing, the main focus is still on housing, and this is one of the ways for us to monetise the land and at the same time address the need for housing,” he said.
Bank Islam will provide project financing as well as end-financing for the purchase of the condominium, shop house and shop office units through its Al-Waqf Home Financing-i product.
This initiative is one of the bank’s contributions towards expanding the waqf industry in Malaysia and boosting Muslims’ asset holdings, he said.
Meanwhile, UME executive chairman Azli Md Yusof said the developer is also involved with agriculture and education projects.
“All these projects are in three phases, and will be completed within five to six years’ time, with a gross development value of RM300mil,” he said.
UME, a fully-owned unit of Perbadanan Wakaf Selangor, is entrusted with developing waqf land in the state. - Bernama
KUALA LUMPUR: PPES Works (Sarawak) Sdn Bhd and Bina Puri Sdn Bhd joint venture (PPESW-BPSB JV) have secured a RM1.36bil contract from Lebuhraya Borneo Utara Sdn Bhd.
Bina Puri Sdn Bhd is a wholly owned subsidiary of Bina Puri Holdings Bhd while PPES Works is a 51% owned indirect subsidiary of Cahya Mata Sarawak Bhd.
In a filing with Bursa Malaysia on Monday, Bina Puri Holdings said the contract was for the proposed development and upgrading of phase one of the Pan Borneo Highway, covering Sungai Awik Bridge to Bintangor Junction in Sarawak.
“The contract is for duration of 47 months from the date of the letter of award,” Bina Puri said.
PPESW-BPSB JV is a 70 (PPESW): 30 (BPSB) joint venture, and a joint-venture company would be incorporated to undertake the contract as a condition imposed in the tender for the contract, it said. - Bernama