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Keong Hong unit gets S$53.8m contract for consortium's Mattar Road residential project

MAINBOARD-LISTED construction and property company Keong Hong Holdings got the main contract for a residential project in MacPherson's Mattar Road, which is being developed by a consortium it is part of.

Wholly owned subsidiary K H Land was awarded the contract for about S$53.8 million, said Keong Hong in an announcement on the Singapore Exchange website on Thursday.

The project is not expected to have any material impact on net tangible assets per share and earnings per share for the year to Sept 30, the group added.

Its latest unaudited financial results, released on Monday, showed third-quarter profit more than doubling year on year for the three months to June 30, rising from S$3.59 million to S$8.58 million, even as revenue shrank by 22.2 per cent to S$40.5 million.

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Keong Hong has a 35 per cent stake in FSKH Development, which earlier in the year won a public tender for the 6,230.2 sq m (67,060 sq ft) 99-year-leasehold Mattar Road land parcel, with a S$223 million bid.

The other members of the FSKH consortium are Hock Lian Seng Holdings and TA Corp.

The Keong Hong board added that none of the directors or controlling shareholders or their respective associates have any interest in the K H Land project, other than through their shareholding interests in the company.

Keong Hong closed lower by half a Singapore cent, or 0.93 per cent, at S$0.535, before the announcement.