UEM Builders gets RM515m Berjaya Central Park job

UEM Builders Bhd has been awarded a RM515.38 million contract by Wangsa Tegap Sdn Bhd to build the Berjaya Central Park complex in Kuala Lumpur. The project is expected to be completed by Jan 31, 2009.

UEM Builders said on Nov 17 that it had received a letter of acceptance to build the complex comprising a 51-storey superstructure of services suites and hotel blocks and three-storey basement car park.

Under the agreement, Wangsa Tegap shall raise up to RM515 million in the form of medium term notes (MTN) or any other mode of financial instrument.

UEM Builders shall provide a corporate guarantee in favour of the project lenders for up to 40% of the MTN raised.

“This corporate guarantee shall be secured by a second charge to the parcel of land and its building and a corporate guarantee in favour of UEM Builders from Berjaya Group Bhd for up to RM285 million,” it said.

Under the agreement, the MTN will be issued with a repayment period of three years from drawdown.

UEM Builders also said there was a commitment from Wangsa Tegap on the sale of the hotel block within one year from the letter of award with a forward sale and purchase agreement for a company under Berjaya Group of Companies to purchase the hotel block at no less than RM360 million if Wanga Tegap is unable to secure a purchaser.