Spring Gallery bags RM176 mil job for development in Johor

KUALA LUMPUR (April 19): Spring Gallery Bhd has bagged a RM176 million contract to provide professional project management facilities for the development of a piece of land in Perling, Johor, currently sited by the Johor State Tennis Academy.

In a filing with Bursa Malaysia yesterday, Spring Gallery said its wholly-owned subsidiary Profit Sunland Sdn Bhd had signed a managing contractor agreement with Prinsip Nusantara Sdn Bhd (PNSB) for the proposed project.

PNSB is a privately-held property developer, which is 60% owned by Mohd Najib Johan and 40% by Datuk Soh Kok Hiang.

Covering 6.02 acres (2.44ha), the land will be developed into a new state tennis academy and a mixed development comprising a three-storey shop office and two blocks of 25-storey medium-end apartments. The mixed development will have a gross development value of RM260 million and a gross development cost of RM176.5 million. “We are grateful to be awarded with this project as it is the company’s first project in Johor following our achievements in Terengganu,” said Spring Gallery executive director Kuan Poh Huat in a statement.

“This project will also set to lead the group in spreading our wings in the southern state and many other states to come. We are confident that it will contribute positively to the profit earnings of the group in the upcoming and subsequent financial years,” he added.

The development order is expected to be obtained in July this year and the targeted completion date of the project is 30 months from the execution date of the agreement.

Spring Gallery said the agreement is in line with the group’s diversification into the construction business to provide another stream of revenue source to reduce the dependence on its existing business in the ceramic segment.

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This article first appeared in The Edge Financial Daily, on April 19, 2016. Subscribe to The Edge Financial Daily here.