Iris Corp to participate in 1Malaysia Civil Servants Housing project

KUALA LUMPUR: Iris Corp Bhd has followed two other listed developers in announcing that it has won a slice of the 1Malaysia Civil Servants Housing (PPA1M) project in Putrajaya, which also comes with a mixed development project.

In a filing with Bursa Malaysia on Tuesday, the company, whose businesses range from property development to supplying MyRapid and Touch ‘n Go cards, announced it had clinched the biggest PPA1M contract out of the three developers, with gross development cost (GDC) of RM622.7mil.

Other developers that have sent statements to the bourse this week that Putrajaya Corp had awarded them PPA1M contracts are Damansara Realty Bhd and Protasco Bhd. 

Iris, which is 25% owned by Felda Investment Corp, said it was given the contract by the Putrajaya administrator to build 1,928 PPA1M houses as well as a mixed development project comprising 508 houses and 22 commercial buildings (for open sale) on 16.2 acres in Precinct 19.

The company is required to provide a performance bond to Putrajaya Corp for the due performance of the contract for the value of 2% of the GDC, which amounts to RM12.45mil, prior to the execution of the definitive contract.

Iris said the revenue from the project was not expected to have any effect on the revenue of the financial period ending March 31, 2016 but is expected to contribute  positively to the earnings for group for the next three financial years ending March 31, 2017 to 2019.

Iris shares added 1 sen to close at 24 sen on Tuesday.