KUALA LUMPUR : Construction company GDB Holdings Bhd (GDB) has bagged a RM20.67 million contract to be the main contractor to undertake piling and substructure works for Aviary Residence @ Puchong Horizon.
In a filing with Bursa Malaysia today, GDB said its newly acquired 70 per cent owned subsidiary, GDB Geotechnics Sdn Bhd (GGSB) had accepted the letter of award and supplementary agreement from SNA Consult Sdn Bhd, a wholly-owned subsidiary of Hua Yang Bhd, on behalf of Bison Holdings Sdn Bhd.
GDB said the contract entails bored piling and pile caps for two blocks of serviced apartments comprising, a 36-storey 565-unit Tower 1 and 37-storey 337-unit Tower 2. The development will also include a common facilities podium as well as a six-storey car park.
“The overall duration of the contract is for 21 months from the date of possession of site on 18 November 2019 and expected to contribute positively to the group for the duration of the contract,” it said.
Meanwhile, GDB said barring any unforeseen circumstances, the contract is expected to contribute positively towards the future earnings of GDB for the duration of the contract and will not have any effect on the share capital and substantial shareholders' shareholdings of the group.
“The group intends to finance the contract via internally generated funds,” it added.
GDB group managing director Cheah Ham Cheia said the winning of this contract in less than two months since GDB’s completion of the acquisition has showcases the strong value proposition of being an enlarged group that is capable of offering integrated construction service.
“The Group’s new wins stands at RM885.97 million in the current year to date.
Moving forward, we are buoyant on securing more substructure jobs, as we seek to continue leveraging on GDB Geotechnics’ track-record and our leading position within the high-rise construction space,” Cheah said.
On October 2019, GDB completed the acquisition of 70 per cent controlling stake in GDB Geotechnics, a construction contractor specialising in geotechnical and foundation engineering works, for purchase consideration of RM5.96 million.
Coupled with the Group’s outstanding order book as at 30 June 2019, GDB’s total outstanding order book stood at approximately RM1.2 billion and will provide revenue contribution till financial year ending 31 December 2022.