KUALA LUMPUR (June 4): Smart city integrated system and solutions provider ITMAX System Bhd (KL:ITMAX) has been appointed by the Iskandar Puteri City Council (MBIP) as the operator of smart parking in Iskandar Puteri, Johor, for a period of 15 years.

In an exchange filing on Tuesday, ITMAX said its 65%-owned subsidiary Southmax Sdn Bhd has secured a letter of appointment (LOA) to develop, manage and maintain 32,025 on-street parking bays at MBIP, starting June 1 this year until May 31, 2039.

The group did not provide any value for the contract but disclosed that the LOA is based on a revenue-sharing model, in which Southmax will receive 70% of the revenue while the remaining 30% will go to MBIP.

It explained that the public will make a cash reload payment via the group’s own Parkmax@JOHOR application. Southmax has to pay 30% of the total collection to MBIP — including the use of parking spaces for hourly, daily, monthly, seasonal passes and temporary lot rental — as well as 30% from the collection of parking compounds.

Southmax is also required to provide security deposits of staff emoluments and estimated parking revenue at MBIP for six months.

“The revenue generated from the smart parking system will provide additional recurring income for the group. We see a significant opportunity and are confident in expanding this service to other cities,” ITMAX managing director and CEO William Tan Wei Lun said in a statement.

At noon market break, shares in ITMAX were 15 sen, or 6.58%, higher to RM2.43, giving the group a market capitalisation of RM2.50 billion.