KUALA LUMPUR (Sept 9): Binastra Corp Bhd (KL:BNASTRA) has secured a project worth RM574.4 million from Exsim Jalil Link Sdn Bhd for a proposed development of a data centre.

The building works include a five-storey data centre block, office spaces and electrical substation, among other facilities, Binastra said.

This contract, the second one for Binastra related to the data center, is expected to provide an additional income stream for the group over the next two (2) financial years, it said.

The first one, awarded to Binastra in 2023 (then Comintel Corp Bhd), entailed the construction of two building blocks by the end of this year.

Work for this new contract under the data center project, located along Jalan Jalil Perkasa in Bukit Jalil, is expected to start in October for a period of 16 months.

Binastra's executive director Lee Seng Yong, who owns 12.98% in the company, also owns 5% in Exim Jalil via his interest in TRE Holding Sdn Bhd.

Lee "is not a director of Exim Jalil and therefore the contract is not regarded as a related party transaction" under Bursa Securities listing requirements, the company said.

The contract would be Binastra’s' eleventh in the financial year ending Jan 31, 2025 (FY2025) totalling RM2.5 billion, the company said in a separate statement.

In total, the group's outstanding order book now stands at RM3.3 billion, it said.

"To put this into perspective, this RM2.5 billion has already far exceeded the combined value of total contracts won for the two preceding financial years," it added.

"After being entrusted with Phase 1 of this data centre development project in 2023, which is expected to be completed by the end of 2024 and successfully tenanted by Singapore-based technology company, Aperia Cloud Services, we are humbled to be given the responsibility of overseeing the second phase of this proposed data centre through this latest contract.

"Our quality craftsmanship and timely project delivery have solidified our client’s confidence in us. This contract is a reflection of our clients’ continued trust in our capabilities to take on more complex design and build projects.” said Datuk Jackson Tan Kak Seng, managing director of Binastra in the statement.

“As we move into Phase 2, we will collaborate closely with our client and engineers to incorporate enhanced environmental, social, and governance features, ensuring the development aligns with global sustainability standards,” he added.

At the time of writing on Monday, Binastra shares were up three sen or 2.1% at RM1.45 with a market capitalisation of RM1.6 billion.