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LHN secures second carpark contract in Hong Kong plus JTC contract to license 10 carparks

PROPERTY management and logistics services company LHN Limited on Wednesday announced that it had obtained a second carpark management contract in Hong Kong.

LHN's Hong Kong unit LHN Parking HK Limited had secured a two-year contract - from Jan 4, 2018 - for the lease of the carpark in basement two of Carnarvon Plaza in Tsim Sha Tsui, Kowloon.

LHN executive chairman and group managing director Kelvin Lim said: "The carpark is located in a bustling district beside major shopping malls, eateries and night entertainment spots which is expected to generate healthy traffic flow."

In addition, LHN secured a contract to license 10 carparks from the Jurong Town Corporation (JTC) with a total capacity of 4,802 lots.

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The contract - which commenced on New Year's Day - will run for three years with an option to "renew annually for another three years following the end of the current term", the company said in a filing with the Singapore Exchange after the market closed.

"The carparks are EasTech and EastLink in Bedok; KU5, KU6, KU7, KU8 and Ubiplex in Kampong Ubi; and KB-1, AutoHub and AutoBay in Kaki Bukit industrial areas in Singapore," the company added.

On winning the JTC contract, Mr Lim said: "Securing multiple carparks to manage from a reputable Singapore statutory board like JTC is a strong testament to the quality of our service standards and management capabilities that our group seeks to provide.

"We remain cautiously optimistic that these carparks would generate sustainable streams of income for the group."

With the addition of its second Hong Kong deal and the management of 10 JTC carparks to its portfolio, LHN now manages 54 carparks, with 52 in Singapore and two in Hong Kong.

LHN's shares finished S$0.015 or 5.8 per cent down at S$0.245 on Wednesday.