Haily Group bags two contracts worth RM197.55 mil for high-rise development in Johor Bahru

• The project’s primary scope involves constructing a 34-storey serviced apartment tower with 748 units, a sub-basement service plant, multi-level parking facilities, and public amenities on the 10th floor.

KUALA LUMPUR (Sept 29): Johor-based Construction outfit Haily Group Bhd announced that its wholly owned subsidiary, Haily Construction Sdn Bhd, has accepted two letters of award from property development company Connoisseur Properties Sdn Bhd for the construction and completion of a development in Johor Bahru with a total contract value of RM197.55 million.

The project, located on Jalan Bukit Meldrum in Mukim Bandar Johor Bahru, is scheduled to begin construction on Oct 1, 2025, and be completed by Jan 31, 2029, comprising a 45-storey serviced apartment tower with accompanying retail space.

In a bourse filing on Monday, the project’s primary scope involves constructing a 34-storey serviced apartment tower with 748 units, a sub-basement service plant, multi-level parking facilities, and public amenities on the 10th floor. In addition, Haily will build five retail units on Level 1, two more on Level 10, and a dedicated car park on Level 2.

The contract is a fixed-price, lump-sum agreement with a 40-month duration. Liquidated damages are set at RM80,000 per day for delays to the main building works and RM1,000 per day for delays to the shop units. 

A defects liability period of 30 months from the issuance of the Certificate of Practical Completion, or 24 months from the Certificate of Completion and Compliance (whichever is earlier), will apply.

Haily is required to provide a corporate guarantee of RM9.88 million as a performance bond, effective until three months after the completion date.

The group said in a bourse filing that it expects the project to contribute positively to group earnings and net assets over its duration, provided there are no material delays.

The company noted that the agreement involves no special interests from directors, major shareholders, or related parties, and that only normal operational risks are anticipated. The board said it considers the acceptance of the letters of award to be in the best interest of the company.

As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.