KUALA LUMPUR (Aug 29): WCT Holdings Bhd has bagged a contract worth RM840 million for the construction and completion works relating to Light Rail Transit Line 3 (LRT3) from Bandar Utama to Johan Setia.

In a filing with Bursa Malaysia today, WCT said its wholly-owned subsidiary WCT Bhd accepted the Letter of Acceptance (LoA) by Prasarana Malaysia Bhd, and the works are expected to be completed within 33 months from the date of the LoA.

“LRT3 is a double-track rail alignment of approximately 37 km long with 26 stations covering the areas of Bandar Utama, Shah Alam and Klang, before terminating at Johan Setia in Klang,” said WCT.

In a separate filing today, WCT will be partnering with Singapore's CCCG Overseas Real Estate Pte Ltd (CORE) to develop the land in the Tun Razak Exchange (TRX) that it bought for RM223 million in October 2015. The tract is held by WCT Precious Development Sdn Bhd (WCTPD).

WCT’s wholly-owned subsidiary WCT Land Sdn Bhd (WCTL) had entered into a shareholders agreement (SA) with CORE, that will be working together with WCTPD, which is a wholly-owned subsidiary of WCTL.

“The proposed joint investment is in line with the company's current ongoing degearing initiatives to reduce the capital commitments on land banking and property development,” said WCT.

Pursuant to the SA, WCT said CORE had nominated CORE (Singapore) TRX Investment Pte Ltd (CORE SPV) and China Communications Construction Company (M) Sdn Bhd (CCCC (M)) as the new shareholders of WCTPD to subscribe to an 80% stake in WCTPD or 200 million new shares for RM200 million.

Hence, after the exercise, WCT said, CORE SPV, WCTL and CCCC (M), will hold a stake of 65%, 20% and 15% respectively, in WCTPD.

WCT said the proceeds of the subscription of shares by WCTL, CORE SPV and CCCC (M) will be utilised as repayment of the advances from WCT, for the acquisition and development of the land from KLIFD Sdn Bhd.

Barring unforeseen circumstances, WCT said the proposed joint investment is expected to be completed by the fourth quarter of 2017.

Shares in WCT closed down two sen or 1.1% at RM1.80 today, with 2.99 million shares traded for a market capitalisation of RM2.53 billion.