Permaju Industries Bhd is believed to have won a construction contract worth about RM1.2 billion to undertake a massive property development project in Selangor.
Sources in the construction industry said that the contract was awarded by a reputable developer who owns a big plot of land in the Seri Kembangan/Serdang area, located to the south of Kuala Lumpur city centre and about 15km from Cyberjaya.
It is understood, the contract is to build more than 7,000 units of apartments over the next six to seven years.
The highest tower in this development will stand at a height of over 50 floors which may make it the tallest structure in the Seri Kembangan/Serdang area.
Permaju officials were not available for comment at Press time.
The project will be a boom for both Permaju and the construction industry.
Activities in the construction sector had slowed down more than a year ago and further dampened by the Covid-19 pandemic.
Last month Prime Minister Tan Sri Muhyiddin Yassin announced the RM35 billion National Economic Recovery Plan (Penjana) for economic regeneration, which will benefit among others, the construction and property sectors.
To encourage the growth of the property sector, the government reintroduced the Home Ownership Campaign (HOC), which offers stamp duty exemption on the first RM1 million of a property's value on the Memorandum of Transfer for properties priced from RM300,000 to RM2.5 million, and 100 per cent stamp duty exemption for the financing agreement under the Penjana plan.
The exemption is applicable between June 1, 2020, to May 31, 2021, subject to properties that are priced at a 10 per cent discount provided by developers.
The government also announced an exemption on real property gains tax (RPGT) for Malaysians for disposal of up to three properties between June 1, 2020, and December 31, 2021.
"The developer decided to kick-start construction after the Penjana plan was announced as they are now more confident in the market recovering. They received approval to develop the project last year but had put it on hold and feel now is a good time to re-start," said a source.
It is firmly believed that the estimated gross development value is in the region of RM2.4 billion.
Permaju will come in as a design and build contractor.
It is unclear if Permaju will also help in selling the apartments.
Permaju, through its subsidiary companies, is involved in the trading of motor vehicles, timber plantation, construction, and property development.
Through Hardie Development Sdn Bhd it had developed a project called Alam Puteri, a mixed housing estate located in Kota Kinabalu, Sabah.