The Board of Directors of O&C Resources Berhad (“OCR”) wishes to announce that its 70% equity subsidiary, Pangkal Teguh Sdn. Bhd. (“PTSB”), has on 8 September 2016, received a letter of award for its appointment as project management consultant  (“PMC”) from Yayasan Pahang (“YP”) of Komplek Yayasan Pahang, Tanjung Lumpur, 26060 Kuantan, Pahang for its project, Affordable Housing Development Scheme (“AHDS”), in the state of Pahang which consist of approximately 25,000 units of residential properties.

The scope of services to be provided pursuant to the said award comprises of project management and consultancy services for the AHDS in major towns in Pahang in the following phrases;-

• Feasibility study and Schematic Design phase
• Design Development phase
• Contract Documentation phase
• Contract Implementation & Management phase
• Marketing and Credit Control

The professional fees received by PTSB would be based on the nature of works involved and scope of services as follows:-

1. RM5,500.00 for each property selling at the price of RM120,000.00 and below and
2. RM8,000.00 for each property selling at the prices between RM120,000.01 and RM150,000.00;

There is no financial commitment by OCR to PTSB on the said PMC. PTSB will source its own financing for the PMC, if any, while OCR will provide technical support such as consultation to PTSB as and when it is required in view of the vast experience in development and management of projects previously undertaken by OCR.

The duration of the said project is expected to be over a period of 7 years.

The value for this PMC award is at average of 4.8% of the gross development value of the said Project. 

OCR’s profit entitlement from the above PMC is calculated based on its equity interest held in PTSB, which is at 70.0% effective interest. Total estimated profit attributable to OCR from the said PMC is approximately RM91 million over the 7 years construction period.

None of the Directors or major shareholders or persons connected with them has any interest, direct or indirect on the abovementioned PMC. The Board is of the opinion that the abovementioned PMC is in the best interest of OCR and its Group.

The above PMC will expect to contribute positively to the earnings and net assets of the OCR Group for the financial year ending 31 July 2017.

This announcement is dated 8 September 2016.