MGB bags RM225 mil housing development job

KUALA LUMPUR (July 25): MGB Bhd — the construction arm of LBS Bina Group Bhd — has secured an RM225.03 million contract from Akitek Akiprima Sdn Bhd (AASB) for a housing development project in Bandar Putra Permai, Petaling, Selangor.

In a filing with the bourse on Monday (July 25), MGB said its wholly-owned subsidiary MGB Construction & Engineering Sdn Bhd (MGBCE) had accepted the Letter of Award (LoA) from AASB on behalf of Utuh Aspirasi Sdn Bhd (UASB) — a subsidiary of Main Market-listed property developer LBS Bina.

According to MGB, the development project is split into two phases, with each valued at RM145.74 million and RM79.29 million respectively.

Both phases of the project entails the construction of a 29-storey building comprising 725 units of commercial service apartments in Tower A and Tower B with additional amenities.

With this latest contract, MGB said its outstanding order book now stands at RM2.08 billion.

“The contract will have no effect on the issued share capital of the company but it is expected to contribute positively to the earnings and net assets per share of the group over the duration of the contract,” it added.

It is worth noting that MGB’s executive vice-chairman Tan Sri Lim Hock San is also the chairman and major shareholder of LBS Bina.

Year to date, shares of MGB had declined 26% to close at 55.5 sen on Monday, giving it a market capitalisation of RM328.37 million.