Damansara Realty secures RM27m project for RAPID

KUALA LUMPUR: Damansara Realty Bhd has secured a RM27.62mil contract to provide medical services for the Petronas Refinery and Petrochemical Integrated Development (Rapid) in Pengerang, Johor.

PRPC Utilities and Facilities Sdn Bhd, a subsidiary of Petronas Refinery and Perochemical Corp Sdn Bhd, awarded the small medical facility project to a joint venture between Damansara Realty subsidiary TMR Urusharta (M) Sdn Bhd and KPJ Healthcare Bhd's Kumpulan Perubatan (Johor) Sdn Bhd.

The small medical facility project also includes an optional services contract for RM7.8mil, bringing the potential total contract value to RM35.42mil.

The project will boost Damansara Realty's integrated facilities management segment, which stood at RM285mil in contracts as at July 2017.

The IFM division contributed 46% of the group's total EBITDA in the first half of 2017, said Brian Iskandar Zulkarim, group CEO of Damansara Realty.

The group saw a return to profitability in its second quarter ended June 30, 2017, with earnings of RM4.54mil compared with losses of RM6.01mil in the previous corresponding period. For the first half of the current financial year, the group posted earnings of RM3.19mil.

"Barring any unforeseen circumstances, we expect the Group to show a full-year operating profit for the first time in four years,” said Brian Iskandar.

Damansara Realty was awarded with RM124mil contract to operate and maintain the temporary executive village and management office of Petronas’ Rapid project in September 2016, and secured another contract for security management services worth RM26.21mil in July 2017.