Integrated property developer Astaka has awarded a RM150 million ($42.6 million) construction contract to Kimlun Sdn Bhd. Kimlun is a subsidiary of Bursa-listed engineering and construction group in Malaysia, Kimlun Corporation Berhad.
The contract will see Kimlun taking on the role of main contractor for Aliva, a 499-unit development located in Mount Austin, Johor Bahru, by Astaka. The project has an estimated gross development value of RM254 million. Units range from 595 sq ft to 1,075 sq ft. It is positioned to target the premium market segment in Mount Austin. The project is slated to be completed in the fourth quarter of 2026.
Astaka held a groundbreaking ceremony for the commencement of Aliva’s construction on April 18.
"The contract award marks the continuation of our excellent partnership with Kimlun, their proven track record in delivering high-quality projects aligns perfectly with our vision for Aliva," says Allen Khong, Astaka’s executive director and CEO.
This is not the first collaboration between Astaka and Kimlun. Kimlun’s 40%-owned joint-venture company, JBB Kimlun Sdn Bhd, was the main contractor for the Astaka-designed and developed Menara MBJB project, a 15-storey Grade A tower for the Johor Bahru City Council.
"We look forward to deepening our working relationship and completing another landmark project together. We are confident that this partnership will bring forth a development that will exceed expectations and contribute significantly to the real estate market in Johor Bahru," says Chin Lian Hing, executive director of Kimlun.
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Since the commercial launch of Aliva in December 2023, the project has achieved a take-up rate of 70%.
Shares in Astaka closed flat at 8.8 cents on April 18.
