KUALA LUMPUR (Sept 3): A unit of MGB Bhd, formerly known as ML Global Bhd, has bagged a contract worth RM122.3 million to undertake the construction of serviced apartments and related facilities in Sepang, Selangor.

The Industrialised Building System (IBS) precast manufacturer said its wholly-owned subsidiary MITC Engineering Sdn Bhd has accepted the letter of award from Blee & W Architects Sdn Bhd on behalf of Azhar Mohd Shariff and Koleksi Sigma Sdn Bhd (KSSB) to undertake the project.

The project will commence on Feb 15, 2021, and will be completed on May 14, 2022, according to MGB’s filing with the local bourse, adding that its outstanding order book now stands at RM1.61 billion with this latest contract win.

MGB said the contract entails the construction of a 22-storey serviced apartment block containing 812 units, along with an eight-storey building that comprises a car park podium and facilities. It will also build a guardhouse and refuse chamber.

The award of the contract is deemed a related party transaction as Tan Sri Lim Hock San is group managing director of both MGB and property developer LBS Bina Group Bhd, the parent company of KSSB.

Hock San is also a major shareholder of LBS Bina, holding a direct interest of 2% and an indirect stake of 36.17%  in the company as at Aug 19, according to MGB.

Meanwhile, Hock San’s brother Datuk Lim Hock Guan is an executive director of both MGB and LBS Bina. In addition, Hock Guan is also a major shareholder of MGB, holding a 0.3% direct stake and 60.44% indirect interest in the company.

It also noted that Azhar is a substantial shareholder of Alunan Warta Sdn Bhd, a direct subsidiary of MGB.

MGB closed down 1.5 sen or 1.94% at 76 sen, valuing it at RM381.26 million. Meanwhile, LBS Bina shares price also closed 1.5 sen or 3.16% lower at 46 sen, which gives it a market capitalisation of RM739.28 million.