Fajarbaru's RMAF Butterworth base redevelopment contract sum revised higher to RM16.26m

• The revision was to provide for "the 50% schematic design report to be a planning phase milestone", and to defer the date for the delivery phase approval.

KUALA LUMPUR (Jan 11): The value of Fajarbaru Builder Group Bhd’s contract for the planning phase of the redevelopment of military facilities at the Royal Malaysian Air Force (RMAF) base in Butterworth, Penang has been revised to a higher sum of RM16.26 million, from RM7.36 million previously.

The revision was to provide for "the 50% schematic design report to be a planning phase milestone", and to defer the date for the delivery phase approval.

Parties to the contract have agreed to the revision and entered into a deed of amendment (DOA) on Dec 22, 2023 to amend the contract, said Fajarbaru in a stock exchange filing on Thursday.

The contract was awarded by the Australian Department of Defence in July last year, which hired an unincorporated joint venture between Fajarbaru’s unit and Avionics Pty Ltd, which is wholly owned by Avionics Holdings Pty Ltd. Avionics Holdings is 60%-owned by the Nick Brumley Family Trust, with the other 40% stake held by the S&R Webb Family Trust.

Avionics’ portion of the contract originally amounted to A$1.45 million or RM4.53 million, while Fajarbaru's was RM7.36 million

With the DOA, the total contract sum now amounts to RM16.26 million plus A$1.45 million, or collectively RM20.79 million.

Fajarbaru’s portion increased by RM4.94 million to RM12.3 million, while Avionics’ portion saw an addition of RM3.96 million — for RM8.49 million.

The contract period was originally from July 10 to Nov 13, 2023, but has now been extended to April 30 this year.

Shares in Fajarbaru traded unchanged at 29.5 sen on Thursday, giving the company a market capitalisation of RM219.68 million.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!