Lian Beng unit to receive S$200m building contract

LIAN Beng Group announced on Tuesday that its wholly-owned subsidiary, LS Construction Pte Ltd, has received a letter of intent for a S$199.5 million building contract to be awarded for a proposed flat development at Serangoon North Avenue 1.

The letter of intent is from Oxley Serangoon Pte Ltd, in which another Lian Beng Group subsidiary, Lian Beng (Serangoon) Pte Ltd, holds a 20 per cent stake.

The contract period is 40 months and is expected to start in November 2018. The development is made up of seven blocks of 14-storey residential flats, three blocks of two-storey strata-landed townhouses, five commercial shops, two basement carparks, a swimming pool and other ancillary facilities.

Lian Beng Group said this contract is not expected to have a material financial impact on its net tangible assets per share and earnings per share for the current financial year ending May 31, 2018.

Including this latest contract, the group's order book stands at approximately S$1.04 billion as at Dec 19, 2017. This will provide a sustainable flow of activity through FY2022, the group said.