KUALA LUMPUR (Sept 29): Johor-based Haily Group Bhd (KL:HAILY) has secured two contracts worth a combined RM197.55 million for the construction of a 45-storey service apartment block and accompanying shop units in Johor Bahru.

In a bourse filing on Monday, the construction outfit said its wholly-owned subsidiary, Haily Construction Sdn Bhd, accepted the letters of award (LOA) from property developer Connoisseur Properties Sdn Bhd.

The main building works will cover a 34-storey service apartment with 748 units, a sub-basement service plant, car parks spanning multiple levels, and public facilities on the 10th floor.

Haily will also undertake the construction of five shop units on Level 1, two shop units on Level 10 and a car park on Level 2.

The project, located along Jalan Bukit Meldrum in Johor Bahru, will run for 40 months, commencing Oct 1, 2025, with completion slated for Jan 31, 2029.

Under the terms, liquidated damages for late delivery are set at RM80,000 per day for the apartment block and RM1,000 per day for the shop units. The contract carries a 30-month defect liability period and requires Haily to provide a RM9.88 million corporate guarantee as performance bond.

Haily founder and executive director See Tin Hai in a statement said the latest win underscores the group’s ability to deliver high-rise service apartments alongside commercial and supporting components. 

With the latest job win, Haily’s cumulative secured contracts for the year have risen to about RM265.22 million. Its total outstanding order book now stands at RM1.20 billion across 26 ongoing projects, providing earnings visibility through to 2029, the group said. 

Shares in Haily closed 1.5 sen or 6.38% higher at 25 sen on Monday, valuing the company at RM105.8 million.

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