KUALA LUMPUR: Crest Builder Holdings Bhd subsidiary Crest Builder Sdn Bhd has been appointed main contractor for a proposed 43-storey condominium development in Kuala Lumpur in a deal worth RM285mil.
The contract, the biggest secured by Crest Builder so far, was awarded by developer Starpuri Development Sdn Bhd, a subsidiary of DNP Holdings Bhd. The latter is an outfit of Singapore's Wing Tai Asia.
Crest Builder business development director Eric S.M. Yong said with the latest contract, the company's current order book had risen to RM1.21bil. The company has an unbilled order book of RM850mil.
Based on the company's annual revenue level, its construction order book should last comfortably for the next two years. "This is the largest (contract so far). It is a sign that we are able to do large-scale projects and it is a sign that there will be bigger projects to come," he told StarBiz yesterday, adding that this would also boost the company's profile. The latest contract is Crest Builder's second project with Wing Tai Asia, as it was previously the main contractor for The Meritz, also in Kuala Lumpur.
After Crest Builder takes possession of the site at Jalan Ceylon, the project will be executed in 34 months, with completion scheduled by Dec 1, 2010. The contract was expected to contribute to Crest Builder's earnings for the financial year ending Dec 31 and onwards, the company told Bursa Malaysia yesterday.
Yong said as the company tendered for the project very recently, it had internally factored in the price escalation of raw building materials to a certain extent. "The other standard measure will be proper management and planning of the project (to minimise the cost of the project)," he added.
Yong also felt that the company would not be very much affected by the current market meltdown because its policy had always been to work with reputable and strong developers.
The value of this contract also surpassed Crest Builder's aim to maintain an annual replenishment of RM250mil to its order book. Moving forward, Yong expected more tenders for new projects. "Despite the current market meltdown, the property sector is still strong and it will maintain good growth," he said.
Late last year, Crest Builder won a RM97.2mil contract from TH Technologies Sdn Bhd, a subsidiary of Lembaga Tabung Haji, to build a 34-storey building along Jalan Perak, Kuala Lumpur.