KUALA LUMPUR (Aug 10): Ireka Corp Bhd said today its wholly-owned subsidiary Ireka Engineering & Construction Sdn Bhd has initiated pre-commencement of an arbitration against UEM Land Bhd arising from a dispute over a contract finalisation.
In a filing with Bursa Malaysia today, Ireka said the arbitration is in respect to disputes and differences arising from the finalisation for a contract dated April 3, 2014 on the construction of a proposed mixed development in Puteri Harbour, Iskandar Malaysia in Johor.
Ireka said it will make further announcement as and when further material developments arise.
In June 2012, Ireka Engineering & Construction had accepted a letter of award from UEM Land for the construction of the proposed mixed development at a contract sum of RM268.6 million.
The project comprises a 35-storey block of serviced apartments with a five-storey car park and recreational facilities and swimming pool, a 16-storey office tower with a three-storey car park, a single-storey commercial block, and a single-level car park in the basement.
The contract was for a period of 24 months, commencing on Aug 1, and completing on July 13, 2014.
Ireka shares closed unchanged at 60.5 sen today, with 1,000 shares done, for a market capitalisation of RM112.96 million.