KUALA LUMPUR (July 2): Damansara Realty Bhd's indirect wholly-owned unit Metro Parking Management (Philippines) Inc (MPP) has received a lease contract to construct and manage a parking lot in Muntinlupa City, Philippines.
In a filing with Bursa Malaysia today, Damansara Realty said it has received a contract of lease entered by MPP with Madrigal Business Park Commercial Estate Association Inc (MBPCEA) to build a two-level steel deck parking facility comprising about 208 parking slots at Madrigal Business Park, Ayala-Alabang, Muntinlupa City, Philippines.
With the new contract, MPP and MBPCEA will also renew the existing car park contracts for 702 parking slots under the new terms and conditions.
The term of the contract is for a period of 20 years, commencing July 1, and renewable for another 10 years.
The contract income is the collection of parking fees during the contract period, based on the rates of parking fees.
For MPP, it is required to build the parking facility within six months from the date of execution of the contract. In addition, the construction of the third level shall commence as and when the demand for additional parking spaces arises, with an extended term of five years, subject to a mutual agreement between the two parties.
Damansara Realty said the cost of constructing the said parking facility is expected to be RM5.6 million.
Under the contract, MPP also agrees to pay the combined monthly rental and annual profit sharing exclusive of 12% Value Added Tax (VAT) to MBPCEA.
The contract is expected to contribute positively to the earnings per share and net assets of Damansara Realty for the financial year ending Dec 31, 2020 (FY20) and subsequent financial years, when the construction is completed and the collection of parking fees commences in the third quarter of 2020.
Shares of Damansara Realty closed up 1 sen or 2.25% today at 45.5 sen, for a market capitalisation of RM144.86 million.