KUALA LUMPUR: Property developer Ireka Corporation Bhd's (ICB) wholly-owned subsidiary Ireka Development (Terengganu) Sdn Bhd (IDTSB) today received a letter of award (LoA) from Koperasi Permodalan Sahabat Terengganu Bhd (PSTB) for a RM58.3 million development project in Terengganu.
In a filing on Bursa Malaysia today, ICB said the project comprised affordable and mixed housing developments on a 9.75 hectare and in Kampung Baru Kuala Abang, Mukim Kuala Abang, Daerah Dungun in Terengganu.
IDTSB is the appointed co-developer for this project.
Construction works for the project are slated to commence on 20 December 2021 and is expected to be completed on 19 December 2024.
This development in Kuala Abang will see 284 home units and five commercial units over the next three years.
The three home variants to be built are targeted at the B40 segment. They are Type A (61 units), Type B (93 units) and single-storey terrace houses (130 units).
ICB managing director Mohd Hasnul Ismar Mohd Ismail said this latest contract win reaffirms the company's commitment to providing affordable housing for the underserved segments in Malaysia.
"It will continue to be a significant contributor to the nation's property development sector.
"Over the years and before the Covid-19 pandemic, there was an apparent mismatch in the pricing and affordability.
"Hence, it is ICB's vision to build affordable homes that can assist the B40 segment in becoming homeowners," he said in a statement today.
Mohd Hasnul said the company has been focusing on collaborations with various parties to develop affordable housing in Malaysia, such as PSTB.
These synergistic alliances and partnerships help reduce costs while accelerating the progress and availability of such affordable housing for those that need them.
He said this strategy was reaping the rewards for the company, as ICB had successfully secured more than RM850 million in construction jobs over the last five months, adding that such aggressive and proactive initiatives would help the company secure more jobs in the future.
"Over the last five months, our new management team and the new strategies put in place has grown ICB's order book from RM470 million to more than RM1.36 billion, which has enhanced our earnings visibility.
"These forward-looking steps also help us manage our cashflows and resources better as we take on more projects ahead."
According to Mohd Hasnul, ICB was keen on continuing with collaborative opportunities in mixed developments, especially in arrangements that will benefit the broader community, such as this project with PSTB.
"With the assets and local knowledge of our partners, coupled with ICB's more than 50 years of experience and expertise in construction, engineering, and property development, we believe this is a win-win scenario for all," he said.