Iris bags RM622.7m Putrajaya mixed development job

-A +A

KUALA LUMPUR (Dec 1): Digital identification solutions provider Iris Corp Bhd, which ventured into property development just early this year, was awarded a mixed development contract in Putrajaya that carries an estimated gross development cost (GDC) of RM622.73 million.

In a filing with Bursa Malaysia today, Iris said it received the letter of award, dated Nov 26, from Putrajaya Corp to undertake the proposed development of Perumahan Penjawat Awam 1Malaysia (PPA1M) and a mixed development (commercial and residential buildings) at Presint 19, on a tract measuring 16.2 acres.

It has accepted the appointment for the project, and said the job — involving the construction of 1,928 units of residential houses under PPA1M, with 508 residential houses and 22 units of commercial buildings for open sale — is expected to be completed in 30 months.

"Iris is to provide a performance bond to Putrajaya Corp for the due performance of the contract for the value of 2% of the GDC, prior to the execution of the definitive contract," the filing read.

Iris said the project will be funded by internal funds and bank borrowings, the breakdown of which is yet to be determined.

Iris said revenue from the project is not expected to have any effect on its financial statement for Mar 31, 2016 (FY16), but is expected to contribute positively in the next three financial years up to FY19.

Iris shares rose one sen or 4.35% to settle at 24 sen today, with 12.14 million shares done, for a market capitalisation of RM469.3 million.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)