This article first appeared in The Edge Financial Daily on October 17, 2018

KUALA LUMPUR: Kerjaya Prospek Group Bhd said its order book is expected to balloon to RM1 billion, boosted by the RM400 million construction contract it has secured from the controlling shareholder Datuk Tee Eng Ho.

Like most of its peers, Kerjaya Prospek’s share price has been bogged down by the concern over the slowdown in construction activities as the government is reviewing most of the public infrastructure projects.

However, Tee, who is also the executive chairman, pointed out that the group has not seen any slowdown in job flows.

He is confident Kerjaya Prospek will be able to maintain its order book target at a minimum of RM1 billion in next financial year ending Dec 31, 2019 (FY19).

On the FY18’s performance, Tee said, based on the group’s turnover, it is expected to register a slight year-on-year improvement in the construction margin.

Kerjaya Prospek’s share price shed nearly 36% year-to-date to RM1.17 yesterday with market capitalisation at RM1.45 billion.

Meanwhile, Kerjaya Prospek Property Sdn Bhd (KPP), a unit of Kerjaya Prospek, yesterday signed a memorandum of cooperation (MOC) with Luxury Hotels International Management Co BV, a subsidiary of hospitality company Marriott International Inc yesterday.

Under terms of the MOC, KPP is tasked to design and build the proposed mixed development project while Marriott International will be given a 10-year contract to operate Courtyard by Marriott.

Marriott International will also provide technical consultation on the development and design, as well as to develop marketing and branding strategies for the hotel.

Tee said the mixed property development project, which is located near Old Klang Road, has an estimated gross development value of RM1.1 billion.

The project, with a gross built-up area of some 3.5 million sq ft, will comprise a 276-room hotel in the 38-storey tower, office units measuring 100,000 sq ft, a retail mall measuring 300,000 sq ft, as well as two 68-storey towers housing 1,199 units of serviced apartments.

Tee is confident of selling the serviced apartment units — with a targeted selling price starting from RM800 per sq ft — given that they carry the same address as the Courtyard by Marriott hotel.

He said Kerjaya Prospek will shift its entire corporate headquarters to occupy either four or five floors of the same tower with Courtyard.

Meanwhile, KPP is also in talks with other international groups looking to move in.

The project, slated for completion in 2022, is currently nearing the end of piling works, Tee said.

Construction for the basement floors is in progress and a soft launch is targeted for the first quarter of 2019.