Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on August 19, 2016.

 

KUALA LUMPUR: 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, 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 yesterday for the job, which covers a 38-month period.

Damansara Realty said L C Catering will form a joint venture company (JV) to undertake the work. The equity participation and terms in the JV 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 Baru, is involved in the catering business.

Damansara Realty said execution of the contract will be subjected 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.

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 the 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 yesterday, with a market capitalisation of RM228.94 million.

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