KUALA LUMPUR (Sept 26): Damansara Realty Bhd said today that it has formed a joint venture with a Johor catering company to undertake the RM124 million facilities management and catering services job it secured from Petronas Refinery and Petrochemical Corp Sdn Bhd last month.
In a bourse filing today, Damansara Realty said its wholly-owned subsidiary TMR Urusharta (M) Sdn Bhd has formed a joint venture company (JVCo) with LC Catering Sdn Bhd to undertake the job at Petroliam Nasional Bhd's (Petronas) RM60 billion Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor.
The JVCo — TMR LC Services Sdn Bhd — is 70% owned by TMR Urusharta and 30% by LC Catering, said Damansara Realty.
It will operate and maintain the temporary executive village and management office at Rapid, which is slated to be the largest integrated refinery and petrochemical hub in the region.
It will provide general cleaning, pest control, landscaping and other services to Petronas' temporary executive village and management office from Nov 1, 2016.
The contract, to be completed over some 38 months, is expected to positively impact Damansara Realty's revenue from its financial year ending Dec 31, 2016 (FY16) till FY19.
Damansara Realty's newly appointed group chief executive officer Brian Iskandar Zulkarim said the contract underscores the strength of the group's facilities management division.
"This contract will boost our group earnings before interest tax depreciation and amortisation over the coming years," he said in the same filing.
Damansara Realty is in property development, facilities management services, car park operations and cleaning and hygiene services. Its shares gained 0.5 sen (0.7%) to close at 70 sen today, for a market capitalisation of RM216.56 million.