KUALA LUMPUR (Sept 25): KJTS Group Bhd's (KL:KJTS) unit has signed a 20-year agreement for retrofit work, operation and maintenance (O&M) services for a chiller plant, and the supply of chilled water at the Centara Grand Mirage Beach Resort Pattaya, Thailand.
The subsidiary in Thailand, KJTN Engineering Co Ltd, entered into the agreement on Tuesday with Central Plaza Hotel Public Company Ltd (Centel).
This marks KJTN’s second project with Central Group, according to parent KJTS in a filing with the stock exchange on Wednesday.
KJTN will finance the retrofit works, estimated to cost 38.98 million Thai baht (RM4.92 million). The retrofit works are expected to commence on Oct 1, and be completed by May 31 next year.
Meanwhile, Centel will pay KJTN a fixed monthly fee of 620,072 Thai baht during the operation and maintenance services period.
In addition to the fixed fee, Centel will also pay a variable fee based on the amount of chilled water supplied.
Over the 20-year period, the total fixed fee will amount to 148.82 million Thai baht, the filing read.
The O&M services, as well as the chilled water supply, will commence on June 1, 2025, and conclude on May 31, 2045.
The ownership interest in the chiller plant will be transferred to Centel at the end of the agreement.
Centel, primarily involved in the hotel and resort sector, is part of Central Group, one of Thailand’s largest private commercial conglomerates with over 50 subsidiaries, with diverse investments across various industries.
KJTS specialises in providing cooling energy, cleaning, and facility management services, primarily for the property industry.
On Monday, the group announced that it had secured a RM24 million contract for works on a data centre project.
At Wednesday’s noon break, its share price had slipped 0.76% or half a sen to 65.5 sen, valuing the group at RM450.6 million.
The counter has surged some 143% against its initial public offering price of 27 sen since its listing in January on the ACE Market or Bursa Malaysia, partly benefiting from investors’ frenzy over data centres.