KUALA LUMPUR (June 19): Binastra Corp Bhd (KL:BNASTRA) said on Wednesday that it had secured a RM313.7 million contract to construct a residential apartment complex in Kota Kinabalu, Sabah.

In a bourse filing, the construction firm said that its wholly owned subsidiary Binastra Builders Sdn Bhd had accepted a letter of award from FYT Land (KK) Sdn Bhd for the construction job.

The job scope includes external works outside the site boundary, piling works, and main building works for a residential apartment complex comprising two blocks — one with 373 units across 34 storeys and the other with 389 units across 30 storeys, as well as a seven-storey car park podium.

The project will commence on June 19, and is expected to be completed by July 31, 2027.

Binastra added that the contract is expected to provide an additional income stream for the group over the next three financial years.

This is the second construction job Binastra has secured in a month. On June 7, the group announced that it had secured a RM315 million contract from Pembinaan Serta Hebat Sdn Bhd to build two blocks of residential apartments in Bandar Tasik Selatan, Kuala Lumpur.

The contract is deemed a related party transaction, as Binastra managing director and major shareholder Datuk Tan Kak Seng has a substantial indirect interest in Pembinaan Serta Hebat. Therefore, it is subject to Binastra obtaining shareholders’ approval in the annual general meeting on July 3.

Binastra, formerly known as Comintel Corp Bhd, exited Practice Note 17 status in September last year and underwent rebranding under Tan, who became a shareholder in December 2022 and was previously involved in construction projects.

Tan, who is also a substantial shareholder of property developer Maxim Global Bhd (KL:MAXIM), has been Binastra’s managing director since January 2023.

For the financial year ended Jan 31, 2024 (FY2024), Binastra’s net profit more than doubled to a record RM40.77 million from RM16.52 million for the previous year, mainly due to increased work activities in the construction segment. Revenue also more than doubled to RM425.2 million from RM184.85 million for FY2023.

As of Jan 31 this year, Binastra had 15 ongoing construction projects, with an outstanding order book of RM1.4 billion.

Shares in Binastra settled five sen or 3.76% lower at RM1.28 on Wednesday, valuing the company at RM1.39 billion.