KUALA LUMPUR (Dec 8): TAFI Industries Bhd said on Wednesday (Dec 8) that its wholly-owned unit TAFI Home & Office Sdn Bhd (formerly known as Home & Office Furniture Sdn Bhd) has been awarded a RM30 million contract from Buana Tunggal Sdn Bhd for construction related works including mechanical and electrical works to complete a mixed commercial development project at Permas City, Johor Bahru.

In addition to the RM30 million award sum, TAFI Home & Office will also be entitled to 30% share of the net gross development value proceeds of certain units of properties under the Permas City project, which is estimated to be around RM6 million, TAFI said in a bourse filing.

According to TAFI, the construction-related works on the Permas City project will commence in December 2021 and are expected to take about 12 months to complete.

Revenue from the project is expected to start coming in by the end of December 2021, it added.

TAFI Group Chief Executive Officer Datuk Seri Bryan Wong said that securing the RM30 million contract and the estimated RM6 million share of the net gross development value proceeds will contribute positively towards TAFI’s future earnings, and is also a sign that the company is on the right track in its efforts to grow its construction business.

“Since TAFI Home & Office is holding a G7 licence issued by the Construction Industry Development Board (CIDB), which allows it to tender for construction projects of unlimited value, we will work towards tendering and securing higher value construction contracts from both the private sector and also government sector to further grow our revenue stream from construction contracts,” he said.

TAFI closed one sen or 0.49% lower at RM2.05 on Wednesday, valuing the group at RM255.3 million.

Year-to-date, the counter has risen 225.4%.