Tuju Setia bags RM209 mil contract to build apartments

• Alora Residences is the first phase of 2Fifth Avenue, a 13-acre integrated development in USJ worth RM3 billion in gross development value.

KUALA LUMPUR (Jan 12): Tuju Setia Bhd has bagged a RM209 million contract from Avaland Bhd (previously known as MCT Bhd) for the construction of two blocks of service apartments in USJ 25, Subang Jaya.

The Alora Residences project is slated to be completed in 33 months with work tentatively scheduled to commence in the second quarter of 2024, said Tuju Setia in a bourse filing.

The construction group expects the contract to contribute positively to its earnings and net assets for the financial year ending Dec 31, 2024 until the completion of the contract.

Alora Residences is the first phase of 2Fifth Avenue, a 13-acre integrated development in USJ worth RM3 billion in gross development value.

In a statement, Tuju Setia managing director Wee Eng Kong said the new win at the beginning of 2024 is a good start for the group.

“With stable building material prices recently, property developers have been more inclined to advance bidding discussions for their upcoming projects. Hence, this positive outlook bodes well for us to secure new projects and improve our earnings,” he said. 

Wee added that the construction of Alora Residences would provide the group the opportunity to take on more “green” development projects from both new and existing clients in addition to being able to participate in future Avaland developments.

Tuju Setia’s ongoing projects are mainly high-rise buildings, such as Emerald 9 (Cheras), Jernih Residence (Kajang), Sunway d’hill Residences (Kota Damansara), and One Equine (Seri Kembangan), as well as the design and build of the Kajang Women and Children Hospital.

Tuju Setia’s share price closed down 0.5 sen or 2.44% at 20 sen, giving the group a market capitalisation of RM63 million. Compared with its initial public offering price of 70 sen in May 2021, the stock has fallen by 71%.

Avaland Bhd​​ is a strategic partner with EdgeProp START, featuring the Sanderling, Casa Embun and Alora Residences developments. All Avaland​​​ homebuyers also get to enjoy rewards worth up to RM18,888. 

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