KUALA LUMPUR: Kimlun Corp Bhd's wholly owned subsidiary Kimlun Sdn Bhd has bagged a construction contract from Astaka Development Sdn Bhd for the main building works for a serviced residence development, Aliva Mount Austin, in Johor worth RM150 million.

In a filing with Bursa Malaysia, the company said the construction work is expected to be completed in the fourth quarter of 2026.

In a separate statement, Kimlun executive director Chin Lian Hing said the company is confident that this partnership will bring forth a development that will exceed expectations and contribute significantly to the real estate market in Johor Bahru.

He said since the commercial launch of Aliva in December 2023, the project has achieved a remarkable take-up rate of 70 per cent.

Astaka executive director and chief executive officer Allen Khong said that with the construction of the Johor Bahru-Singapore Rapid Transit System (RTS) Link progressing well, it is seeing more international buyers, particularly from Singapore, actively looking for properties in Malaysia as their second home or as investment.

"In light of this, we have successfully applied with the Johor government to reduce theminimum threshold for foreigners' purchase of property to start from RM500,000. We expect these factors to further accelerate the take-up rate for Aliva," he said.

The project is expected to contribute positively to the earnings and net assets of Kimlun group for the financial years during the contract period, the company said.

 - BERNAMA