Fajarbaru secures RM125.3mil contract from Penang Development Corp

KUALA LUMPUR: Fajarbaru Builder Group Bhd (FBG) has bagged a construction job from Penang Development Corporation (PDC), its second major contract in less than two months.

FBG, via its wholly-owned subsidiary, Fajarbaru Builder Sdn Bhd(FBSB), had on April 7, 2023, accepted a letter of award from PDC to build three blocks of affordable apartments in Seberang Perai Selatan, Penang.

The RM125.3 million contract will be for phase four of a mixed development project comprising twenty-five phases.

Phase four consists of one block of 12-storey affordable apartments (149 units), one block of 14-storey affordable apartment Type A (149 units), one block of 19-storey affordable apartment Type B (222 units), five units of shop lots and one block of two-storey car and motorcycle parking.

The contract will be effective for 36 months, commencing on June 15, 2023, and shall be completed on 14 June 2026.

The contract is expected to contribute positively to the earnings and net assets of FGB from the financial year ending June 30, 2024 (FY24) onwards.

Fajarbaru's group executive chairman Tan Sri Chan Kong Choy said this contract follows the construction contract secured from WCT Holdings Bhd last month.

"The award from PDC signifies their trust in our track record and quality of project delivery.

"The project will have earnings visibility for about three years and will contribute positively to FGB alongside our other ongoing construction projects.

"Moving forward, FGB will continue to work towards securing more high-value projects," he said in a statement today.

On March 3 2023, FGB secured a RM310.54 million construction contract for three blocks of condominium from WCT Holdings' indirect subsidiary, Kekal Kirana Sdn Bhd.

The contract commenced on March 15, 2023, and is expected to be completed in 35 months or on February 14, 2026.

Looking ahead, FGB's growth will continue to be underpinned by its construction projects, such as the Duta Park and Pavillion Mont Kiara projects as well as the planned developments of its property projects, such as Desa Green in Kelantan, The Wilds and the development at Fitzroy, both located in Melbourne, Australia.

FGB has an ongoing property development named Vierra Residence Kinrara, and about 95 per cent of the units have been taken up.

As for the logging and timber trading segment, FGB has approximately 14,366 acres of working block through its subsidiaries and associate company, which will continue to contribute to the company's earnings in the future.

The company has also expanded its business into the plantation segment and foresees that this segment may generate good returns in the long term.

FGB will persistently bid for prospective infrastructure and rail construction projects, supported by its state-of-the-art trackwork machinery and expertise.

The company is also on the lookout to expand its property development footprints in peninsular Malaysia and Australia depending on market conditions.

Most Popular
Related Article
Says Stories