Property News

Tafi bags RM207 mil related-party transaction for mixed-used development in Setia Alam

KUALA LUMPUR (July 12): Tafi Industries Bhd (KL:TAFI) has bagged a construction contract as well as piling and project furniture works worth a combined total of RM207.46 million for a mixed-use development project that comprises a serviced apartment and a small-office, home-office (SOHO) block in Setia Alam, Selangor.
The contract, awarded by Armani KPF2 Development Sdn Bhd (AKDSB), is expected to contribute positively to its earnings for the financial year ending Dec 31, 2024 (FY2024) until FY2027, said its group chief executive officer Datuk Seri Bryan Wong Sze Chien in a statement on Friday.
The latest contract won increased Tafi’s outstanding order book to RM507.7 million.
The tenure for the construction of the main building and associate works is 42 months, with a contract value of RM186.6 million.
The piling and project furniture construction works has a tenure of six months, worth RM20.86 million. 
This contract is deemed a related-party transaction, as Datuk Seri Azlan Azmi, Datuk Seri Wong Sze Chien, Datuk Seri Ong Chee Kean and Abdul Malek Jalil are directors of both Tafi and AKDSB.
Koperasi Permodalan Felda Malaysia 2 Bhd (KPF2) is a substantial shareholder of both Tafi and ADKSB, where KPF2 held a 10% stake in Tafi.
In Tafi, Azlan Azmi is a group managing director, Ong a non-independent non-executive chairman and Abdul Jalil a non-independent non executive director.
Azlan Azmi and Wong hold a 54.39% stake in Tafi via an investment vehicle Armani Synergy Sdn Bhd. 
In ADKSB, Azlan Azmi holds 20.1% stake in the company, Wong and Ong have 39.9% and 10% in the group, respectively. 
Shares of Tafi closed 1.6% or one sen lower at 62 sen, giving the group a market value of RM235 million.
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Source: EdgeProp.my