Nestcon secures RM161m contract to build 36-storey serviced apartment in Ulu Kelang

Nestcon Bhd has won a RM161 million contract from B.U. Developments Sdn Bhd to construct a 36-storey serviced apartment block in Bandar Baru Ulu Kelang, Selangor. The 34-month project, awarded on Nov 2, 2026, is expected to contribute positively to Nestcon's financial metrics.

KUALA LUMPUR (Nov 7) — Nestcon Bhd has secured a RM161 million contract from B.U. Developments Sdn Bhd to construct a 36-storey serviced apartment block in Bandar Baru Ulu Kelang, Gombak, Selangor.

In a Bursa Malaysia filing on Friday (Nov 6), Nestcon said its wholly-owned subsidiary Nestcon Builders Sdn Bhd had accepted the letter of award that day. The letter was dated Nov 2. The project is on Lot PT5843, Seksyen 2, formerly part of Lot 126847 (GM1529).

The contract sets a 34-month construction period from Nov 2, 2026, with completion scheduled for Sept 1, 2029. The defect liability period is 30 months from the date stated in the certificate of practical completion of the main building works.

Nestcon said the contract is expected to contribute positively to its net assets per share, earnings per share and gearing throughout the duration of the works. The group said it does not foresee any exceptional risks other than the normal operational risks associated with the award and the main building works, and would take the necessary steps to mitigate them as they arise.

Nestcon added that acceptance of the award does not require shareholder or regulatory approval. It also stated that none of its directors, major shareholders or persons connected with them has any direct or indirect interest in the award or the works.