KUALA LUMPUR (Aug 2): O&C Resources Bhd’s unit has clinched a RM101.08 million contract to construct affordable houses under the 1 Malaysia affordable housing scheme (PR1MA) in Alor Gajah, Melaka.

In a filing with Bursa Malaysia, O&C said its 70%-subsidiary, Kita Mampan Sdn Bhd had, through its associate company, AES Builders Sdn Bhd, inked a master en-block purchase agreement with PR1MA and Mampan ESA (Melaka) Sdn Bhd to build and develop 554 residential units with five apartment blocks of 11 storeys each, and one apartment block of 12 storeys.

The contract is over a period of 3 years, the filing stated.

O&C said the contract is expected to contribute positively to the earnings and net assets of the group for the financial year ending July 31, 2017.

O&C Resources — formerly known as baby products, condoms and toys manufacturer, Takaso Resources Bhd — ventured into the property development sector, after purchasing a 50% stake in AW Impian Land Sdn Bhd (AWIL) for RM6 million last year.

AWIL owns a 0.3-hectare leasehold land in Petaling Jaya, on which Takaso aims to carry out a RM45.5 million residential project, comprising three blocks of three-storey town houses.

The project is expected to commence in a year and to be completed by 2018.

O&C shares closed 1 sen or 2.53% lower at 38.5 sen today, for a market capitalisation of RM87.97 million.