Source: The Edge
Kerjaya Prospek Group Bhd, whose outstanding order book hit RM2.9 billion after bagging a RM442 million building job from Singapore-listed Aspen Holdings Ltd yesterday, expects to secure more contracts before the year is out.
It has put in bids for some RM1.2 billion worth of jobs, said Kerjaya Prospek chairman Datuk Tee Eng Ho. The bulk or 70% to 80% of these bids are for high-rise development, with the rest related to infrastructure works.
He said the company’s strength lies in high rises, hence the larger number of bids for such work.
“We plan to invest over RM20 million as capital expenditure for equipment and construction technology (Industrialised Building System [IBS]) for high-rise buildings. It is our expertise and we use IBS to improve the quality of buildings and reduce manpower,” he said.
Tee was speaking to reporters after signing the group’s sixth contract for the year, where it beat six others in an open tender to be the main building contractor for Vertu Resort, a resort-style condominium.
The partnership with Aspen Vision City Sdn Bhd (AVC) brings its year-to-date contract wins to RM868 million. AVC is an 80:20 joint venture between Aspen and Ikea Southeast Asia franchisee Ikano Pte Ltd, which is developing a RM10 billion gross development value (GDV) satellite township on 245 acres (99ha) of land here.
The project comprises 1,246 condominium units in five tower blocks ranging from 20 to 36 storeys above nine-storey podiums with common facilities and ancillary works.
“This is our first project with Aspen and I would like to thank them for the opportunity to be part of an iconic project in Penang. Actually, we are very selective with our tenders. A lot of people ask us to take part but we have turned several down,” said Tee.
“We hope to work on more projects with Aspen on a long-term basis because we find that it is a good partner, and as both of us are public listed, there would be lots of transparency. We look forward to the commencement of work and delivering the project according to the high standards we are known for,” said Tee.
Works for Vertu Resort, which has a GDV of RM661.7 million, are expected to take about 38 months to complete, beginning Sept 4. It should finish by Nov 4, 2020. To date, the resort-style condominium project has a take-up rate of 50% and is located about 350m from the northern region’s first Ikea store.
On completion in 10 to 15 years, the satellite township would feature designer bungalows, a commercial precinct, a Columbia Asia Hospital, a four-star hotel, an international school and a 25-acre park.
Aspen president and group chief executive officer Datuk M Murly said he aims to work closely with Kerjaya Prospek due to its track record.
“I like their work, which is neat and clean. I decided to work with them after I noticed their workmanship, and their price was also competitive. We hope to work with companies like Kerjaya Prospek when expanding nationwide to strengthen our development and gain customers’ confidence,” he said.
Murly also reiterated that Aspen aims to explore opportunities with Ikano in Southeast Asia by leveraging their partnership, more so since its listing on Singapore Exchange’s Catalist, as it seeks to give value to shareholders.
However, Malaysia would remain its core location and its current priority is developing the AVC township, he added.