CONDOMS MAKER OCR TO GAIN RM91MIL FROM RM91MIL FROM AFFORDABLE HOUSING DEAL IN NAJIB’S HOME STATE

KUALA LUMPUR – O&C Resources Bhd’s (OCR) subsidiary Pangkal Teguh Sdn Bhd (PTSB) has been appointed project management consultant (PMC) for Pahang State Foundation’s affordable housing development scheme comprising about 25,000 units.

In a filing with Bursa Malaysia, the condom and baby product manufacturer said the scheme covered major towns in Pahang and PTSB’s services were for these phases: feasibility study and schematic design, design development, contract documentation; contract implementation & management, and marketing and credit control.

OCR said the PMC contract value averaged 4.8% of the gross development value of the seven-year project.

“Total estimated profit attributable to OCR from the said PMC is about RM91mil over the seven-year construction period,” it added.

The professional fees received by PTSB would be RM5,500 for each property selling at RM120mil and below and RM8,000 for each property priced higher (up to RM150mil).

There is no financial commitment by OCR to PTSB on the contract. “PTSB will source its own financing for the PMC, if any, while OCR will provide technical support such as consultation to PTSB as and when it is required in view of the vast experience in development and management of projects previously undertaken by OCR,” the company said.

According to OCR, none of its directors or major shareholders or persons connected with them has any interest in the PMC contract.

The contract is expected to contribute positively to the earnings and net assets of the OCR group for the financial year ending July 31, 2017. – ANN

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