TCS Group Wins RM130 Million Contract for Selangor Serviced Apartments

"TCS Group secures RM130 million contract for 630-unit Arcadia Residences in Selangor, to be funded internally and via borrowings."

Kuala Lumpur, 1st Aug 2024, 11.45am - TCS Group Holdings Bhd, a building and infrastructure construction company, has won a RM130.15 million contract to build serviced apartments in Selangor through a related party transaction.

The project, named Arcadia Residences, will consist of 630 units and is situated in the Kuala Langat district, according to a company filing with the stock exchange.

The three-year contract was awarded by Saujana Permai Development Sdn Bhd, a fully owned subsidiary of CDB Group Holdings Sdn Bhd.

The contract is classified as a related-party transaction because TCS Managing Director Datuk Tee Chai Seng and his wife, Datin Koh Ah Nee, are directors and major shareholders of Saujana Permai, through their shares in CDB Group.

As per TCS' 2023 annual report, Tee is the largest shareholder in the company, holding a 56.68% stake as of March 29, 2024.

TCS stated that it plans to finance the project through internally generated funds and/or borrowings.

On Tuesday, TCS shares remained unchanged at 15 sen, valuing the company at RM90 million.