Nestcon Wins RM161 Million Contract for a 36-Story Apartment Block in Gombak
The project, awarded by BU Developments, is scheduled to begin in November 2026 and reach completion of its main building works by September 2029.
Nestcon said Friday its construction subsidiary had accepted a RM161 million contract to build a 36-story serviced apartment block in Gombak, Selangor. The award adds a third major construction contract this year to the two the company announced in August, spanning projects in Selangor and Penang.
BU Developments awarded the contract to Nestcon Builders, a wholly owned unit of the listed company, according to the company's exchange filing. The work concerns one block in Bandar Baru Ulu Kelang. The award lists Nov. 2, 2026, as the start date and Sept. 1, 2029, as the deadline for completing the main building works, a period of 34 months. Nestcon reported the acceptance on Nov. 6.
The job includes a 30-month defects liability period beginning from the date specified in the certificate of practical completion. That period is separate from the construction deadline. It follows the point at which the main building works are certified as practically complete. The public announcement summarized the contractor's scope but did not set out details such as selling prices, apartment sizes or the developer's handover timetable for buyers.
How the Award Fits Nestcon's Recent Work
The Edge reported that the three major jobs announced this year were worth RM478.52 million combined. The other two were a RM74.52 million apartment job in Kwasa Damansara, Selangor, awarded by Exsim MX4, and a RM243 million serviced apartment job in George Town, Penang, awarded by Exsim Waterfront. Both went to Nestcon Builders in August. The Gombak award is larger than the Kwasa Damansara job and smaller than the George Town contract.
Those figures are the announced values of the work awarded, spread over each project's construction schedule. They cannot be treated as revenue earned in a single reporting period. For Gombak, the announced timetable spans parts of four calendar years. The RM161 million figure also does not establish Nestcon's profit on the project. The actual contribution will depend on the progress of work and the cost of carrying it out.
Nestcon told Bursa it expected the award to contribute positively to measures including earnings per share over the period of the main building work. The board described the job as part of the group's ordinary business. The statement did not provide a margin estimate or a year-by-year earnings forecast for Gombak.
For the first six months of 2026, Nestcon reported RM391.5 million in revenue and RM12.68 million in profit attributable to shareholders. In the same period a year earlier, the company posted RM341.94 million in revenue and RM5.09 million in attributable profit. Revenue rose 14.5% and attributable profit more than doubled. Those results preceded the November award and provide a baseline for judging the group's performance as it takes on the additional work.
Nestcon's investor page shows its shares closed Friday at 44.5 sen, down one sen for the session. The filing was released after trading hours, so that closing price predates the announcement. Future financial reports can show the pace at which the work contributes to the group. For the site itself, the principal dates disclosed so far are the contractual start, the September 2029 target for main building work and the defects liability period tied to certification.
