Luster Industries to take over Kota Bharu mixed development

In a filing with Bursa Malaysia today, Luster said its indirect wholly-owned subsidiary Pembinaan LSP Sdn Bhd (PLSB) has entered into an agreement with Cosmo Property Management Sdn Bhd to take over the project called Alwaqf.

The proposed Alwaqf project has three phases, with the first featuring 99 commercial lots in five stories building with one level of basement car park, while the second phase is a 13-storey apartment consisting of 443 unit suites, 24 one-room unit suites and 38 two-room unit suites.

The third phase is a business complex consisting of 256 unit in three stories, with one level of basement car park, roof top garden, a convention hall, a cineplex, a food village, a Muslim prayer house, a recreation centre and swimming pool on the roof.

Luster said the project was originally awarded to Cosmo and is partially completed as of today, with “the structure of the building reaching Level 12”.

“PLSP will be taking over the balance and uncompleted part of the said works and Cosmo will be appointed as the sub-contractor for the execution of said works,” it said, but did not reveal the remaining contract value, nor the project’s gross development value.

Luster also did not explain the necessity for it to take over the project, even though Cosmo will still be the ultimate entity to execute the construction works.

Luster’s share price traded unchanged at nine sen today, valuing it at RM155.88 million. — theedgemarkets.com

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