Thursday 18 Apr 2024
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KUALA LUMPUR (Jan 9): GDB Holdings Bhd, the main contractor of the 8 Conlay mixed development, will now resume work on a part of the project as it has received partial payment from the project owner, Damai City Sdn Bhd, a unit of KSK Land Sdn Bhd.

The project was previously delayed as GDB suspended work due to payment issues.

In a statement, GDB said it would resume façade work on Tower A, and that full work on the project will resume in early April 2023, provided Damai City meets the agreed terms and settles the outstanding amounts as scheduled.

“With the requisite conditions fulfilled and uplifting of suspension of works together with the forthcoming issuance of the Architect Instruction, we will remobilise and recommence façade works for Tower A of 8 Conlay pursuant to the terms of agreement.

“We aim to continue reinforcing our track record for premium high-rise buildings, while at the same time creating sustainable value for our shareholders," said GDB managing director Cheah Ham Cheia.

In August 2022, GDB, via its unit Grand Dynamic Builders Sdn Bhd (GDBSB), served a suspension notice to Damai City and halted all works on the project, which boasted an estimated gross development value of RM5.4 billion and would feature the world's tallest "twisted" twin tower residence, amid speculations that it had not been paid. KSK Land, meanwhile, refuted claims that the group was having financial issues and told The Edge in July 2022 that it remained "financially strong with sufficient resources to ensure the completion of the 8 Conlay project".

In October 2022, GDBSB sued KSK Land to recover RM120.69 million that the construction firm claimed was the sum owed by Damai City. In its writ of summons and statement of claim filed at the High Court here, GDBSB contended that KSK Land was also in breach of its obligations under the corporate guarantee.

GDB, via GDBSB, secured the RM1.25 billion contract in 2020 from Damai City to complete the 8 Conlay project.

Separately, GDB said its current order book stands at RM1.3 billion, which provides earnings visibility until its financial year ending Dec 31, 2024.

This outstanding order book consists of construction works for Park Regent at Desa ParkCity and 8 Conlay in Jalan Conlay, Kuala Lumpur City Centre, as well as the newly secured design and build contract to construct a logistic hub located in Bandar Bukit Raja 2 Industrial Park in Klang, Selangor for SDPLOG 1 (Industrial Assets I) Sdn Bhd (formerly known as Sime Darby Property (Industrial Asset I) Sdn Bhd).

GDB’s share price jumped 10.2% or 2.5 sen to settle at 27 sen at market close, giving the group a market capitalisation of RM248.06 million.

Edited ByTan Choe Choe
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