Permaju wins RM1.2 billion contract to build high-rise residential

Permaju Industries Bhd is believed to have won a construction contract worth about RM1.2 billion to undertake a massive property development project in Selangor, reported the New Straits Times (NST).

The NST, quoting sources in the construction industry said that the contract was awarded by a reputable developer who owns a big plot of land in the Seri Kembangan/Serdang area, located to the south of Kuala Lumpur city centre and about 15km from Cyberjaya.

The contract is to build more than 7,000 units of apartments over six to seven years.

According to the NST report, the tallest tower in this development will stand at a height of over 50 floors. Wow that is really tall and it would make it also the tallest structure in the Seri Kembangan/Serdang area. It will be interesting to see how this structure turns out and it will certainly be a boost to the housing market in Seri Kembangan/Serdang.

The developer, whom we do not know yet who they are, decided to kick-start construction after the RM35 billion National Economic Recovery Plan (Penjana) was announced last month as they are now more confident in the market recovering.

The Penjana plan will benefit among others, the construction and property sectors.

For the property sector, the government reintroduced the Home Ownership Campaign (HOC), which offers stamp duty exemption on the first RM1 million of a property’s value on the Memorandum of Transfer for properties priced from RM300,000 to RM2.5 million, and 100 per cent stamp duty exemption for the financing agreement under the Penjana plan.

The exemption is applicable between June 1, 2020, to May 31, 2021, subject to properties that are priced at a 10 per cent discount provided by developers.

The government also announced an exemption on real property gains tax (RPGT) for Malaysians for disposal of up to three properties between June 1, 2020, and December 31, 2021.

I am sure more developers will come out of the closet and start building in the second half of this year.

It seems this particular developer received approval to undertake the project last year but had put all plans on hold until now.

The estimated gross development value is about RM2.4 billion and Permaju will come in as a design and build contractor.

Permaju is involved in the trading of motor vehicles, timber plantation, construction, and property development.

This company has made interesting headlines recently by announcing a rights issue where the proceeds will be used for expansion, and its venture in the glove sector.

The share price of Permaju has also been inching up despite a soft market, moving from as low as 24 sen about two weeks ago to trade as high as 33.5 sen today.

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