KUALA LUMPUR (May 18): Sarawak Consolidated Industries Bhd's wholly-owned subsidiary SCIB Properties Sdn Bhd has secured an estimated RM120 million contract to build high-rise residential units within Sering district in Kota Bharu, Kelantan under the PR1MA Corp Malaysia affordable homes scheme.

In a statement to Bursa Malaysia today, Sarawak Consolidated said SCIB Properties had on Wednesday (May 12) accepted the letter of award and acceptance for the engineering, procurement, construction and commissioning contract from AUEI Teras Holdings Sdn Bhd.

Sarawak Consolidated said construction of the project is expected to be undertaken between June 2021 and August 2023. "The formal agreement for the abovementioned contract shall be executed in due course,” it said.

According to Sarawak Consolidated, the project involves the proposed construction of two 21-storey apartment blocks with 316 residential units each.

Sarawak Consolidated said the project includes the construction of a multi-purpose hall and surau, a nursery and kindergarten facility, guardhouse and four-and-a-half storey carpark. A surau is an Islamic assembly place for worship and religious education.

According to Sarawak Consolidated, the estimated RM120 million contract value excludes the multi-purpose hall and surau, nursery and kindergarten facility, guardhouse and infrastructure work.

"Any profits attributable to the group will be realised in stages over the tenure of the contract based on the progress of the project. 

"The contract secured is expected to contribute positively to SCIB (Sarawak Consolidated) Group’s future earnings over the duration of the contract,” Sarawak Consolidated said.

At Bursa’s 12:30pm break today, Sarawak Consolidated’s share price rose one sen or 0.76% to RM1.32, which values the group at about RM182.13 million.

Sarawak Consolidated has 137.98 million issued shares, according to the company’s latest quarterly financial report.