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Keong Hong, Hyundai to build new sports, recreation centre for S$306.6m

KEONG Hong Holdings' wholly-owned subsidiary and Hyundai Engineering & Construction Singapore Branch will develop a new sports and recreation centre.

The Singapore Sports Council awarded the S$306.62 million main contract to Hyundai, which is the principal partner of the project, mainboard-listed Keong Hong said on Monday evening.

Hyundai and Keong Hong Construction (KHC) had submitted a joint tender and formed a joint venture (JV) for the construction project. Both parties intend to transfer the main contract from Hyundai to the JV.

KHC's share of the total capital commitment in the JV is 30 per cent, according to Keong Hong's filing on Jan 17.

On Monday, Keong Hong did not provide details of the upcoming centre. Sport Singapore's website states that new facilities to be built under its Vision 2030 masterplan include a regional sports centre in Punggol that will cater to a wider range of competitive sports and events, as well as a town sports and recreation centre in Sembawang that will combine sporting and community facilities. 

Keong Hong, a construction, hotel and property development and investment group, said the group will fund its share of the costs for the project via internal resources and/or bank borrowings.

The project is not expected to have a material impact on the group's consolidated net tangible assets per share and consolidated earnings per share for the current financial year ending Sept 30, 2020. 

Shares in Keong Hong closed flat at S$0.46 on Monday, before the announcement.