This article first appeared in The Edge Financial Daily, on October 27, 2015.

KUALA LUMPUR: Bina Puri Holdings Bhd is likely to clinch an estimated RM230 million contract from PR1MA Corp Malaysia (PR1MA) for the construction of affordable properties in Plentong, Johor.

In a filing with Bursa Malaysia yesterday, Bina Puri said it had received the letter of intent from PR1MA for the job comprising 994 apartments and 20 shops.

According to Bina Puri, it will build the properties on a 7ha freehold land.

“The said project is expected to contribute positively to the net assets and earnings of [the] Bina Puri group for the financial year ending Dec 31, 2016,” it said.

In a press statement, group executive director Matthew Tee said the group is looking forward to securing the project soon.

“In line with the recent budget, where construction is one of the major beneficiaries with a targeted growth in excess of 8%, the group is confident that we will be one of the major players especially with our presence in Sabah, Sarawak, Kuala Lumpur and Johor, the four main growth cities identified in the 11MP (11th Malaysia Plan),” he said.

Bina Puri’s share price closed one sen or 2% lower at 47 sen yesterday for a market value of RM102.3 million.

The government has tasked PR1MA with the responsibility of providing affordable urban homes to Malaysians in the middle-income segment. PR1MA’s website indicates that the properties are priced between RM100,000 and RM400,000 each.