KUALA LUMPUR (Oct 5): Sunway Construction Group Bhd’s (SunCon) joint venture (JV) with construction firm Kajima (M) Sdn Bhd has won a RM595.38 million contract to design and build a distribution centre warehouse for Daiso Malaysia Group Sdn Bhd in Pulau Indah, Selangor.

The Kajima-SunCon JV inked a letter of acceptance with Daiso for the proposed design and construction of the Daiso global distribution centre (GDC) warehouse, according to a bourse filing on Thursday.

The contract will span a period of 34.5 months and is expected to be completed by the second quarter of 2026. The contract is valued at RM595.38 million.

The JV is unincorporated, but SunCon said its wholly owned subsidiary Sunway Construction Sdn Bhd (SCSB) will enter into a detailed JV agreement with Kajima with an equal equity split, with Kajima positioned as the JV’s lead.

Separately, the Japanese household items supplier also announced that it will be investing RM1 billion in making the GDC as a global distribution hub for Daiso to launch logistics operations for the entry of Daiso’s products from Japan and China, including distribution to 22 countries in Asia and the Middle East.

According to Daiso Malaysia Group Sdn Bhd chairman Tan Sri Khairul Adib Abd Rahman, the GDC, with an area of 130,000 square feet, is expected to commence development in May 2024 and be completed in May 2026, and commence its operation in January 2027.

Meanwhile, SunCon also announced that SCSB secured a job from K2 Strategic Infrastructure Malaysia Sdn Bhd to develop a data centre in Johor valued at RM190 million.

“The project is for a period of approximately 14 months and [is] expected to be completed in phases, with the final phase to be completed by the fourth quarter of 2024,” it said in a separate filing.

The group noted that both projects are expected to contribute positively to its earnings for the financial year ending Dec 31, 2023, onwards.

SunCon noted that the total new projects it has secured year-to-date amounts to RM2.2 billion.

Shares in SunCon ended seven sen or 3.8% higher at RM1.91 on Thursday, valuing the group at RM2.47 billion.