KUALA LUMPUR (June 24): Fajarbaru Builder Group Bhd announced today that it has secured a RM297.5 million contract from Malton Bhd to develop two tower blocks for a high-rise residential development here, which is Phase 1 of the Duta Park Residences.

In a statement, the construction group said its unit Fajarbaru Builder Sdn Bhd has accepted the contract award from Malton's unit, Malton Development Sdn Bhd.

The development, located along Jalan Kuching, comprises one 49-level and one 30-level tower blocks, encompassing 840 units in all.

The construction work for these two blocks is expected to be completed within 36 months from its commencement, it said.

Additionally, Fajarbaru said it has agreed to lock in a sum of RM108 million for the construction of Phase 2, a tower block of 46 levels comprising 536 units.

It said the award of Phase 2 is subject to confirmation by Malton Development and the locked-in price shall remain valid for 12 months, after the commencement of Phase 1.

Fajarbaru Group Executive Director Datuk Seri Eric Kuan Khian Leng said the contract is expected to contribute positively to the group’s earnings from financial year ending June 30, 2020 (FY20) onwards.

"The company will continue to explore and actively bid for more contracts, despite challenging market conditions, as part of its efforts to improve its financial visibility," he said.

With the addition of the new contract, he said Fajarbaru's total outstanding order book will rise to RM475 million (which includes RM67 million of Fajarbaru’s own projects), which is expected to support the group's earnings for the next three years.

Fajarbaru shares closed unchanged at 42.5 sen today, for a market capitalisation of RM158.43 million.