Boustead Projects subsidiary awarded S$300m design-and-build contract
BOUSTEAD Projects’ wholly-owned engineering and construction subsidiary, Boustead Projects E&C, has been awarded a S$300 million design-and-build contract, the real estate solutions provider announced on Monday (Jul 18).
The latest contract, awarded by a Fortune 500 corporation, is the group’s largest project on record, Boustead Projects said.
It has boosted the group’s order backlog to S$523 million, comprising unrecognised project revenue remaining at the end of FY2022 and the total value of new orders secured since then.
The project involves the designing and building of a manufacturing facility, integrated with a logistics centre, ancillary office and basement carpark, built to satisfy the requirements for the highest eco-sustainable rating for a building under the Building and Construction Authority’s revised Green Mark Certification Scheme 2021.
Boustead Projects expects the facility to be completed in the 2024 calendar year.
The contract is expected to have a positive material impact on the group’s profitability and earnings per share, collectively in the financial years ending Mar 31, 2023 and Mar 31, 2024.
However, it is not expected to have a material impact on the net tangible asset value per share for the same periods, the company said.
Boustead Projects’ managing director, Thomas Chu, said: “This milestone project is also a positive sign that our E&C (engineering and construction) business is regaining momentum amid an improving pandemic situation.”
Boustead Project shares rose S$0.02.5 to close at S$0.90 on Monday.
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