1. INTRODUCTION
The Board of Directors of Nestcon (“the Board”) wishes to announce that its wholly-owned subsidiary, Nestcon Builders Sdn. Bhd. (“Nestcon Builders”), had on 30 June 2021 be awarded a letter of award (“LOA”) by Tan’ck Architect for the development project undertaken by Mightyprop Sdn. Bhd. (“Developer”) in respect of the earthworks, foundation, substructure, main building works and infrastructure for the construction of one block of 46-storey serviced apartment building comprising 593 units, 4-storey podium with other relevant facilities, 27 units retail lot and 5-storey basement car park, to be erected on the land held under PT51805 (HSD 323241) and part of the land held under PT51810 (HSD323246), Jalan PJU 8/8, Damansara Perdana, Mukim Sungai Buloh, Daerah Petaling, Selangor Darul Ehsan (“Project”).
2. INFORMATION ON NESTCON BUILDERS
Nestcon Builders was incorporated in Malaysia as a private company limited by shares and it is a wholly-owned subsidiary of the Company.
Nestcon Builders is principally involved in construction works.
3. INFORMATION ON TAN’CK ARCHITECT
Tan’ck Architect is the project architect acting on behalf of the Developer. The business address of Tan’ck Architect is situated at 22-2, Block 5, Jalan Jalil Jaya 6, Jalil Link, Bukit Jalil, 57000 Kuala Lumpur.
4. INFORMATION ON DEVELOPER
The Developer was incorporated in Malaysia as a private company limited by shares and having its registered address at No. 7-1, Jalan 109F, Plaza Danau 2, Taman Danau Desa, 58100 Kuala Lumpur.
The Developer is principally involved in housing development.
5. DETAILS OF THE LOA
(a) Nestcon Builders and Developer will be executing a formal contract documents to outline all conditions of the Project, amongst others, conditions of contract, schedule of works, preambles, specifications, drawings, addendums and all other documents.
(b) The contract sum for the Project is a lump sum of RM230.0 million, and payment shall be made to Nestcon Builders progressively based on the actual work done as valued and certified by the architect.
(c) The date of commencement of the Project shall be on 1 July 2021 and the construction period for the Project is within 40 months from the date of commencement.
(d) The defects liability period of the Project shall be 27 months from the date of the Certificate of Practical Completion of the Project.
(e) The building design shall be in compliance with the Green Real Estate (GreenRE) requirements accredited by the Real Estate and Housing Developers’ Association (REHDA) Malaysia.
6. FINANCIAL EFFECTS
The acceptance of the LOA to undertake the Project is expected to contribute positively to the net assets per share, earnings per share and gearing of the Company for the financial year ending 31 December 2021 and throughout the duration of the Project.
7. RISK FACTORS
The Company does not foresee any exceptional risk other than the normal operational risks associated with the LOA and/or Project. Nevertheless, the Company will take the necessary steps to mitigate the risks as and when they occur.
8. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTERESTS
None of the Directors and/or major shareholders of Nestcon or persons connected with them has any interests, direct or indirect, in the LOA and/or Project.
9. STATEMENT BY THE BOARD OF DIRECTORS
The Board is of the opinion that the LOA and the Project are within the ordinary course of business of Nestcon and the acceptance of the LOA is in the best interest of the Company.
This announcement is dated 30 June 2021.