1. BACKGROUND
The Board of Directors of Ireka Corporation Berhad (“ICB” or “the Group”) wishes to announce that its wholly-owned subsidiary, Shoraka Construction Sdn Bhd (“SCSB”), has on 6 February 2026 accepted a Letter of Award (“LOA”) dated 26 January 2026 issued by Sarawak Land (Kemena Park) Sdn Bhd (“SLPK”) for the proposed construction of the Pinnacle Condominium at Jalan Tanjung Batu, Bintulu, Sarawak (“Project”).
2.SALIENT TERMS
| Employer |
Sarawak Land (Kemena Park) Sdn Bhd |
| Contractor |
Shoraka Construction Sdn Bhd (a wholly-owned subsidiary of ICB) |
| Project |
Proposed construction of Pinnacle Condominium, Jalan Tanjung Batu, Bintulu, Sarawak |
| Contract Sum |
RM125,000,000 |
| Contract Period |
Twenty-four (24) months from commencement |
| Commencement of Works |
Upon possession of site and completion of the kick-off meeting |
| Defect Liability Period |
Twelve (12) months from completion |
| Performance Bond |
5% of the Contract Sum (RM6.25 million) |
| Retention Sum |
5% of the Contract Sum, to be released upon issuance of the Certificate Making Good Defects |
| Liquidated Ascertained Damages |
10% per annum of the Contract Sum
|
| Validity of LOA |
The LOA shall lapse automatically if the requisite authority approvals are not obtained on or before 31 January 2027. |
The scope of works comprises, inter alia, structural and architectural works for Blocks A and B, external and ancillary works, and mechanical and electrical works, together with authority approvals, testing and commissioning and submission of as-built drawings and operation and maintenance manuals.
3. COMMENCEMENT AND VALIDITY
Commencement of works under the LOA is subject to, among others, the possession of site, completion of the kick-off meeting and the obtaining of the relevant approvals from the local authorities.
The LOA provides that if the requisite authority approvals are not obtained on or before 31 January 2027, the LOA shall automatically lapse and become null and void without any liability to either party.
4. FINANCIAL EFFECTS
The Project is expected to generate revenue of up to RM125.0 million for the Group over the duration of the contract.
Revenue from the Project will be recognised progressively in accordance with the applicable Malaysian Financial Reporting Standards based on the percentage of completion method, subject to certification of work done.
The Project will contribute positively to the Group’s construction order book and enhance earnings visibility during the financial years in which the Project is undertaken. Barring any unforeseen circumstances, the Project is not expected to have any material adverse effect on the earnings, net assets or gearing of the Group.
5. RISKS
The Project is subject to normal construction and operational risks, including, among others, risks relating to the timely obtaining of authority approvals, the construction timeline, performance bond and insurance obligations, cost and cash flow management, subcontractor performance and exposure to liquidated ascertained damages in the event of delay.
The Group will implement appropriate project management, scheduling, cost control and risk monitoring measures to mitigate these risks.
6. RELATED PARTY TRANSACTION
SLPK is not a related party to ICB or SCSB. Accordingly, the acceptance of the LOA does not constitute a related party transaction pursuant to Chapter 10 of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad.
7. STATEMENT BY THE BOARD OF DIRECTORS
The Board of Directors of ICB is of the opinion that the acceptance of the LOA is in the best interest of the Group.
This announcement is dated 6 February 2026.