KJTS bags retrofit, maintenance and chilled water supply job from KIP REIT

• The filing did not disclose the value of the retrofit works. However, KJTS did note that it will finance the RM25.27 million in capital expenditure required for the retrofit works.

KUALA LUMPUR (March 5): KJTS Group Bhd (KL:KJTS) has secured a contract from KIP Real Estate Investment Trust (KL:KIPREIT) to provide retrofit works, operations and maintenance (O&M) services as well as provide chilled water supply for seven of the retail property trust’s shopping malls.

The contract was awarded to KJTS' wholly-owned unit KJ Technical Services Sdn Bhd by KIP REIT's trustee, Pacific Trustees Bhd, according to the building support services provider’s bourse filing on Wednesday.

The filing did not disclose the value of the retrofit works. However, KJTS did note that it will finance the RM25.27 million in capital expenditure required for the retrofit works.

“The retrofit works are expected to commence on April 1 and be completed on Dec 31, 2025,” it said.

The O&M services and chilled water supply segments of the contract are to commence after the retrofit works.

The O&M services have a base value of RM7.87 million — based on a total base fee of RM393,600 per year and a contract term of 20 years commencing Jan 1, 2026. Meanwhile, fees for the supply of chilled water will be based on the actual volume of chilled water supplied.

“In addition, the operation and comprehensive maintenance charge shall be applied as necessary, based on actual usage and specific maintenance requirements,” KJTS added.

The seven shopping malls covered under the contract are KIPMall Bangi, KIPMall Kota Warisan, KIPMall Senawang, KIPMall Melaka, KIPMall Tampoi, KIPMall Masai and KIPMall Kota Tinggi.

KJTS said the contract is expected to contribute positively to the company’s earnings until its expiration in end-December 2045.

Shares in KJTS ended unchanged at RM1.05 on Wednesday, valuing the company at RM722.4 million.

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