KUALA LUMPUR: NESTCON, through its wholly-owned subsidiary Nestcon Builders Sdn Bhd, has secured a RM161 million contract from B.U. Developments Sdn Bhd to construct a 36-storey serviced apartment block in Bandar Baru Ulu Kelang, Gombak, Selangor.
In a Bursa Malaysia filing, Nestcon said its subsidiary accepted the letter of award on Nov 6, dated Nov 2, for the main building works on the project.
The contract commenced on Nov 2, 2026, and is expected to be completed within 34 months, by Sept 1, 2029. The project also carries a defect liability period of 30 months from the date of the certificate of practical completion.
Nestcon said the contract is expected to contribute positively to the group's net assets per share, earnings per share and gearing throughout the construction period.
The group does not anticipate any exceptional risks arising from the contract beyond the normal operational risks associated with construction activities, adding that it would take the necessary measures to mitigate any risks that may arise.
The award does not require approval from Nestcon's shareholders or regulatory authorities.
Nestcon's board said the contract falls within the group's ordinary course of business and is in the company's best interest.