Ireka wins RM277m property contract from SP Setia's KL Eco City

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KUALA LUMPUR (Oct 8): Ireka Corp Bhd has won a RM276.79 million property construction contract from SP Setia Bhd's unit KL Eco City Sdn Bhd.

KL Eco City is the developer of a mixed real estate project near the Mid Valley Megamall here.

In a statement to the local bourse today, Ireka said its wholly-owned subsidiary Ireka Engineering & Construction Sdn Bhd had secured the contract involving main building work for the retail podium, office Block A and basement levels. 

Ireka said the contract would commence this October 15. Work is expected to be completed in 29 months.

This is KL Eco City’s second contract to Ireka. The latter is currently constructing two blocks of serviced apartments under the RM298.24 million Vogue Suites Tower 1 component for KL Eco City.

The Vogue Suites component is due for completion in November 2016.

"This 2nd contract shows the recognition and confidence that KL Eco City has in Ireka.

"We will continue to leverage on our 47-year track record and the skilled multi-disciplinary team within Ireka, to bring versatility and design-and-build capabilities to our client, where quality is a key pre-requisite,"Ireka Group Managing Director Datuk Lai Siew Wah said in the statement.

The second KL Eco City contract brings Ireka’s order book to about RM1.44 billion, of which, an approximately RM1.08 billion portion remains outstanding.

Ireka shares fell 1.5 sen or 2.17% to 67.5 sen at 12.30pm for a market capitalisation of RM115.3 million.