Ireka to develop RM58m affordable, mixed housing development project in Terengganu

KUALA LUMPUR (Dec 14): Ireka Corp Bhd has secured an affordable and mixed housing development of 9.75 hectares on government land in Terengganu, with the provisional sum of the project amounting to RM58.29 million.

In a filing with Bursa Malaysia on Tuesday (Dec 14), the construction and property group said its subsidiary Ireka Development (Terengganu) Sdn Bhd (IDTSB) has accepted a letter of award (LoA) by Koperasi Permodalan Sahabat Terengganu Bhd (KOSAHABAT) to develop the project in Kampung Baru Kuala Abang, Mukim Kuala Abang, Dungun district, Terengganu.

According to Ireka, IDTSB is principally involved in construction, engineering and real estate development.

Ireka said IDTSB will be appointed by KOSAHABAT as a co-developer to develop the project through privatization, with the project set to commence on Dec 20 this year for a duration of three years, with the expected completion date of Dec 19, 2024.

“Following the acceptance of the LoA by IDTSB, both parties will be entering into a binding contract agreement within three months thereof outlining full details of the terms and conditions for the project that are mutually agreed and acceptable by both parties.

“IDTSB is required to comply with all bylaws and procedures as set by state or local authorities and may appoint local contractors to undertake at least 30% of the project as required by the Terengganu state government,” it said.

Ireka said the project is expected to contribute positively to its earnings for the financial year ending March 30, 2022 and onwards until the completion of the project.

At noon break, Ireka’s shares settled unchanged at 74 sen, giving it a market capitalization of RM168.56 million.

Edited by Surin Murugiah. 

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories