KUALA LUMPUR (June 7): Binastra Corp Bhd (KL:BNASTRA), formerly known as Comintel Corp Bhd, said it has secured a contract worth RM315 million to build two blocks of residential apartments in Bandar Tasik Selatan, Kuala Lumpur.
The group said the contract is deemed as a related party transaction, as its managing director and major shareholder Datuk Tan Kak Seng has a substantial indirect interest in the project’s developer, Pembinaan Serta Hebat Sdn Bhd.
As such, the contract is subject to Binastra obtaining its shareholders’ approval at the annual general meeting to be held on July 3, the group said in a filing with Bursa Malaysia on Friday.
The job scope covers the main building works of the development, comprising two 40-storey apartments — one with 757 units and the other with 743 units, as well as an eight-storey carpark.
The project is to be completed within 33 months from the date of commencement, which is tentatively fixed for July 8.
Binastra added that the contract is expected to provide an additional income stream for the group, over the next four financial years.
The group, which was uplifted from the Practice Note 17 status in September last year, underwent rebranding under Tan, who was involved in construction projects before becoming a shareholder in December 2022. He has been the group’s managing director since January 2023. Tan was also previously a substantial shareholder of property developer Maxim Global Bhd (KL:MAXIM).
For its financial year ended Jan 31, 2024, Binastra’s net profit more than doubled to a record of RM40.77 million, from RM16.52 million in the previous year, mainly due to its construction segment, which saw increased work activities. Revenue also more than doubled to RM425.2 million, from RM184.85 million.
As at Jan 31 this year, Binastra had 15 ongoing construction projects, with an outstanding order book of RM1.4 billion, which the group said would provide earnings visibility over the next four financial years.
Shares in Binastra, which have risen 62.5% year to-date, finished up 13 sen or 6.25% at RM2.21 on Friday, valuing the group at RM1.2 billion.