KUALA LUMPUR (Aug 18): Damansara Realty Bhd's unit has clinched a RM124 million contract to cater food for employees working at the Rapid Temporary Executive Village and Rapid Temporary Management Office at the Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor.

In a bourse filing today, the company said its unit TMR Urusharta (M) Sdn Bhd and the latter's partner L.C Catering Sdn Bhd accepted a letter of award from Petronas Refinery and Petrochemical Corp Sdn Bhd today for the job, which covers a 38-month period.

Damansara Realty said L.C Catering will form a joint venture company (JVCo) to undertake the work. The equity participation in the JVCo and terms are yet to be finalised.

TMR Urusharta is principally involved in facility management, project consultant and project management while L.C Catering, based in Johor Bahru, is involved in the catering business.

Damansara Realty said execution of the contract will be subject to a probationary period of six months, during which Petronas Refinery and Petrochemical Corp will assess the progress and performance of the work undertaken.

Failure to carry out work in accordance with the provisions may result in termination of the letter of award.

"However, with the past experiences and expertise of TMR in facilities management and L.C in food catering, this risk could be mitigated," it added.

Damansara Realty said revenue from the deal is expected to contribute positively to its earnings for the financial period ending Dec 31, 2016 (FY16) and beyond, as operation is expected to start by the fourth quarter of FY16.

Damansara Realty shares closed half a sen or 0.68% higher at 74 sen today, for a market capitalisation of RM228.94 million.