PETALING JAYA: IJM Corp Bhd
’s wholly-owned subsidiary, IJM Construction Sdn Bhd, has bagged an additional contract valued at RM658mil from Sime Darby Property Bhd’s (SimeProp) subsidiary, Sime Darby Property (EBP Asset II) Sdn Bhd.
The contract is for the development of a hyperscale data centre (DC) in Elmina Business Park.
This marks the second win for the same project – IJM’s construction arm had secured a RM1.26bil job for the main buildings works of the project, dubbed Package 1, back in October last year.
In a statement, IJM Corp said the contract will involve construction, completion, testing and commissioning of the DC, including associated ancillary facilities which is within an area of approximately 77 acres.
According to the group, work is set to commence in the second quarter of this year and be completed by the third quarter of 2027.
The group said the project is expected to contribute positively to its earnings commencing from the financial year ending 2027.
Meanwhile, SimeProp noted that the contract had involved a tender process, which started out with nine contractors participating.
Post a pre-qualifying process, four contractors including IJM Construction submitted technical and commercial proposals for a final evaluation.
“The value of the submitted bids for Package 2 ranged from RM658.01mil to RM839.89mil.
“IJM Construction was selected based on the overall evaluation in terms of commercial, capacity and technical expertise, as well as the assessment of Package 1 performance,” it said.
It added that Package 2 will be financed via borrowings, which in turn will result in a higher gearing level for the group.
“Package 2 will not have a material effect on the earnings or net assets per share, share capital and substantial shareholders’ shareholding of SimeProp for the financial year ending Dec 31, 2026,” it said.
