OCR bags housing project in Putrajaya

PETALING JAYA: O&C Resources Bhd (OCR) has received a letter of award from Damansara Realty (Johor) Sdn Bhd (DRJ) to develop a 1Malaysia Civil Servants Housing (PPA1M) project in Putrajaya.
In a filing with Bursa Malaysia yesterday, OCR said the project will be developed on 11.898 acres of land in Precinct 5, Putrajaya.
Based on a development agreement signed between DRJ and Perbadanan Putrajaya on Oct 14, 2016, DRJ was given the right to develop two parts of the project namely the PPA1M portion and the non-PPA1M/commercial portion.
The final governing contract to be executed between DRJ and OCR will comprise a turnkey construction contract for the PPA1M portion with an estimated value of RM324 million, and a commercial and collaboration agreement for the non-PPA1M/commercial portion. For the non-PPA1M/commercial portion, DRJ will be entitled to 20% of the profits earned while OCR will be entitled to the remaining 80%.
If the cumulative profit for DRJ is less than RM10 million, OCR shall pay DRJ the difference so that DRJ will have a minimum profit of RM10 million earned from the non-PPA1M/commercial portion.
As for the PPA1M portion, the terms on the profit earned have not been finalised.
OCR plans to source its own financing for the project, which is expected to take four years to complete.
OCR’s share price rose 2.65% to close at 58 sen yesterday with a total of 323,600 shares traded, giving it a market capitalisation of RM141.4 million.