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Thursday, November 27, 2008

Gadang in running to win RM500m Abu Dhabi jobs

GADANG Holdings Bhd, a construction and property firm, may win two contracts worth RM500 million to build residential towers in Abu Dhabi in the United Arab Emirates by the middle of next year.

It will soon sign a pact with a local party, believed to be from the royal family of Abu Dhabi, to form a joint-venture company.

Gadang's partner will hold a majority stake in the venture, which will source for local funds in Abu Dhabi for the project, managing director and chief executive officer Tan Sri Kok Onn said.

KOK: There is big demand for properties in Abu Dhabi

Besides residential, it will also build office and commercial blocks, Kok said after the company's shareholders meeting in Kuala Lumpur yesterday.
"There is great demand for housing and commercial. There are areas in Abu Dhabi where foreigners can own properties, so there are a lot of investors coming here to buy," he said.

The two contracts are part of the over RM2 billion jobs Gadang is bidding for in Abu Dhabi.

In addition, Gadang is gearing to launch condominiums, semi-detached homes and bungalows worth over RM100 million in Tanjung Bungah, Penang, by the middle of next next year.

It is also waiting for the final results of a tender it submitted two years ago to build a RM200 million sewerage treatment plant in Malacca, Kok said.

"We have a lot in the pipeline. Earnings-wise, we hope to do better next year, driven by current projects and also because construction material prices have dropped. This will improve the situation for us," Kok said.

For the year to May 2007, the company posted a net profit of RM7.5 million on the back of RM172 million revenue.

Gadang expects to benefit from projects under the Ninth Malaysia Plan that the government will call for next year.

By Business Times (by Sharen Kaur)