KUALA LUMPUR (July 8): Construction group Gagasan Nadi Cergas Bhd announced today that it will lead the construction of 4,319 units of affordable homes under the Rumah Idaman programme by the Selangor state government worth RM777 million.
The project, which the group said is its largest ever, will entail the construction of the affordable homes on 36.6 acres of land across four sites in Shah Alam, Selangor, namely one site located in Seksyen U8 and the remaining three sites in Seksyen U17.
Gagasan Nadi Cergas group managing director Wan Azman Wan Kamal said the group is confident of not only delivering quality Rumah Idaman homes, but also raising the benchmark for affordable housing in Selangor.
"Gagasan Nadi Cergas is pleased to continue playing our integral role to support the Selangor state government's clarion call to make affordable homeownership a reality for Selangorians, especially the B40 group.
"Leveraging on our core expertise of design-and-build, this project is a testament to our proven ability to deliver cost-efficient and quality homes in light of our 20-year track record of building affordable homes across Malaysia," he said in a statement today.
Wan Azman added that with the new contract, Gagasan Nadi Cergas' construction order book has hit an all-time high mark, leapfrogging to over RM1.2 billion, which is estimated to be recognised over the next six years.
The project is estimated to be completed over the next six years, and is expected to contribute positively to the group for the financial years ending Dec 31, 2021 to 2027.
Besides the Rumah Idaman programme, Gagasan Nadi Cergas said it is also a part of various affordable housing programmes including Rumah Selangorku projects in Putra Heights and Bukit Raja, Selangor and PR1MA Homes in Pasir Mas, Kelantan.
Additionally, the group is currently developing and building 447 units of affordably priced landed homes under the SelangorKu Perumahan Penjawat Awam Malaysia housing programme in its Selindung Ulu Yam township.
Meanwhile, in a filing with Bursa Malaysia today, Gagasan Nadi Cergas announced that it has acquired 36.6 acres of land in Seksyen U8 and U17, Shah Alam from Sime Darby Property Bhd at a cost of RM24.7 million.
Gagasan Nadi Cergas said the land and construction costs will be financed by internally generated funds, bank borrowings, construction progress billings and sales to eligible homebuyers.
Barring any unforeseen circumstances, the proposed acquisitions of the land are expected to be completed in the first half of 2022.
Shares in Gagasan Nadi Cergas closed up 2.5 sen or 8.62% at 31.5 sen with a market capitalisation of RM237.2 million.