KUALA LUMPUR (March 3): Exsim Hospitality Bhd (KL:EXSIMHB) has secured five contracts worth a combined RM127.92 million for design, renovation and fit-out works across multiple property developments.

The group said all five contracts are deemed recurrent related-party transactions, as Exsim Hospitality’s major shareholders — Lim Aik Hoe, Lim Aik Kiat and Lim Aik Fu — who collectively hold a 70.5% indirect interest in the company, also control substantial stakes in the awarding entities through Exsim Development Sdn Bhd.

The largest contract, valued at RM100 million, was awarded by Uni Land Sdn Bhd for works on a 456-room hotel at Empire City (Building No F). The project, set to commence on March 3, is expected to be completed within 16 months, with a defect liability period of 12 months.

The group has also clinched a RM12.6 million contract from Exsim Development to convert a two-story bungalow into a temporary sales gallery in Kuala Lumpur, slated for completion in eight months.

Meanwhile, a RM8.51 million deal with Exsim Lumba Kuda Sdn Bhd will see Exsim Hospitality fitting out a sales gallery and show unit at Plaza Pelangi, Johor, within three months.

The group also secured a RM6.11 million contract from Exsim MX4 Sdn Bhd for interior design and demolishing works at Kwasa Plot 3 & 4 show units, with completion targeted by June 30, 2025.

The fifth and smallest contract, worth RM700,000, was awarded by Mightyprop Sdn Bhd for reinstatement works at Empire City Sales Gallery 5.

Despite the related-party nature, Exsim Hospitality asserts that the awards are in the group’s best interests and within its ordinary course of business. It said the contracts are expected to contribute positively to its earnings and net assets throughout their respective durations.

Shares of Exsim Hospitality closed two sen or 5.26% lower at 36 sen on Monday, giving the group a market capitalisation of RM334.39 million.