Vivocom's unit appointed turnkey contractor for Perak land

PETALING JAYA: Vivocom Intl Holdings Bhd's subsidiary company Vivocom Enterprise Sdn Bhd (VESB) has been appointed as the turnkey contractor for the development on a piece of land in Mukim Hulu Kinta, Perak, which has a gross development value (GDV) of RM600 million.
VESB yesterday entered into heads of agreement (HoA) with Dazamega Ventures Sdn Bhd for the appointment.
The project comprises six blocks of 22-storey residential condominium.
"Further details of the project will be announced upon the execution of a formal final agreement between the parties," Vivocom said in a stock exchange filing.
According to the HoA, Dazamega, the developer, will appoint VESB as the turnkey contractor to design, construct the structures, infrastructures and all associated works on the development. In turn, VESB is required to complete the construction of the whole development within 48 months after the launch.
The parties are not obligated to proceed with the proposed development unless the terms and conditions of a final agreement is agreed upon and executed by Sept 30, 2016, unless further extended by mutual agreement between the parties.
The cost and outlay by VESB as the turnkey contractor to implement the project have not been fixed and shall be determined once the terms and conditions of a final agreement is mutually agreed upon by the parties.
"Once determined, VESB will finance the cost and outlay by way of the internally generated funds and/or bank borrowings, as and when required," Vivocom said.
Barring unforeseen circumstances, the proposed development is expected to contribute positively to the future earnings of Vivocom.