GDB secures 3S Autohaus contract worth RM67.9m

KUALA LUMPUR (Nov 15): Construction services firm GDB Holdings Bhd has secured a contract worth RM67.9 million to undertake construction works as main contractor for the Hap Seng Star Mercedes-Benz Autohaus at Setia Alam, Selangor.

In a statement today, GDB said the construction work of the 3S (sales, service and spare parts) Autohaus comprises a seven-storey block, which consists of a ground floor and six storeys with two mezzanine floors, as well as a rooftop.

It said the development will feature, amongst others, a car showroom, car service workshop, car receiving bay, office space, training rooms and car parks.

GDB said its unit Grand Dynamic Builders Sdn Bhd was awarded the contract by Hap Seng Land Development (Puchong) Sdn Bhd, a wholly-owned subsidiary of Hap Seng Consolidated Bhd.

This is GDB's third contract win from Hap Seng, following contracts to build the 22-storey Hyatt Centric hotel in Kota Kinabalu, Sabah, in early November 2019, and the 26-storey Menara Hap Seng 3 in Kuala Lumpur City Centre in 2017.

GDB group managing director Cheah Ham Cheia said the latest contract win bodes well for the group's prospects in securing new jobs in this space, in light of potentially increasing demand from multinational and local corporations establishing or expanding their business operations in Malaysia's stable environment in light of trade tensions.

"With this new contract, we have secured new jobs worth RM953.9 million year-to-date.

"Together with GDB's order book as at June 30, 2019, our outstanding order book stands at approximately RM1.3 billion to be recognised over the next three years," he said.

GDB said the duration of the contract will be for 15 months, from Nov 28, 2019 until Feb 27, 2021.

It said the contract is expected to contribute positively towards its future earnings for the duration of the contract.

At the midday break today, GDB shares were flat at 43.5 sen, valuing it at RM271.88 million.

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