KUALA LUMPUR: Ibraco Bhd has secured a RM375 million construction project from Lestari Asiabina Sdn Bhd in Kuching, Sarawak.
In an exchange filing today, Ibraco has accepted the letter of award from Lestari Asiabina as the turnkey contractor for constructing various components on Lot 6036 Block 26 Muara Tuang Land District, Kuching.
The company said the main projects comprising Block 1 – 25m Road Reserve, Block 3 – 32 units of 3 to 4 Storey Shophouses, Block 11 – 10 to 15 Storey Condominium, Block 12 – 7 Storey Putera House Apartment and Block 13 & 14 – Drain Reserve - will commence from the third quarter of 2022 to fourth quarter of 2025.
The remaining projects - Block 2 – 20 storey office tower and Block 4 – 80 units of 3 to 4 storey shophouses – will commence from the first quarter of 2024 to the fourth quarter of 2026.
The project, which will be funded via internally generated funds and external borrowing, is expected to contribute positively to the earnings and net assets of Ibraco for the duration of the project.
Ibraco said the project would not affect the share capital and substantial shareholders' shareholdings of the company.
The risks associated with the project would be normal operational risks which shall be mitigated through internal controls and good governance in operating procedures.