IJM wins contract to build RM392mil HSBC Malaysian HQ

  • Banking
  • Tuesday, 07 Nov 2017

The contract sum is not inclusive of the lifts and facade works which will be procured directly by HSBC.

PETALING JAYA: IJM Corp Bhd has secured a contract from HSBC Bank Malaysia Bhd to undertake the design, construction and completion of the latter’s new headquarters on Jalan Tun Razak, Kuala Lumpur, for RM392mil.

The contract sum is not inclusive of the lifts and facade works which will be procured directly by HSBC.

“The completion period of the project is 37.5 months, which is anticipated to be handed over to HSBC by December 2020,” IJM said in a filing with Bursa Malaysia.

IJM said other than Tan Sri Krishnan Tan Boon Seng, being the common director of HSBC and the company, none of its directors or major shareholders are connected to the project.

HSBC, in June, had said that it is investing about RM1bil to build its future headquarter office in the Tun Razak Exchange (TRX) under its commitment to develop Malaysia as a financial hub in Asean.

The land for the new HSBC headquarters was acquired from TRX City Sdn Bhd in June.

As at end-August, IJM had secured two construction jobs collectively valued at RM1.6bil. The latest win lifted its order book to RM2bil.

IJM had won a RM1.2bil contract in February for the shopping mall at the Bukit Bintang City Centre development. In July, it bagged a RM451mil job to build UOB Tower 2.

As it is, the bulk of IJM’s order book is made up of infrastructure development work. Estimates showed that its current outstanding order book stands at around RM9bil.

The company, CIMB Research said, could emerge as a likely beneficiary of one of the packages for the RM55bil East Coast Rail Link project, due to its track record in rail construction and strong presence in the East Coast Economic corridor.

Meanwhile, HSBC is joining a growing list of international financial firms relocating to TRX, a dedicated financial hub that sits on 70 acres.

In August, it was reported that Prudential Assurance Malaysia Bhd would relocate its headquarters to a 27-storey building in TRX.

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