Lian Beng bags S$174m deal to build Sims Drive condo

MAINBOARD-LISTED construction group Lian Beng has won the tender for a S$174 million contract to build a private-home project for City Developments Ltd (CDL) and Hong Leong Holdings, the board announced on Monday evening.

The deal for the 566-unit project takes Lian Beng's order book to about S$1.7 billion as at May 11, which the board said will yield "a sustainable flow of activity through FY2023".

In a 36-month contract that is expected to have a positive financial impact on the group's net tangible assets and earnings per share for the financial year to May 31, 2021, wholly owned Lian Beng Construction (1988) plans to start work in June 2020.

It will build five apartment blocks, car parks, a childcare centre and other amenities on the government land sales site in Sims Drive that the CDL-Hong Leong joint venture (JV) bagged for S$383.5 million in 2019. CDL owns 40 per cent and Hong Leong, the remaining 60 per cent.  

Lian Beng shares added by S$0.01, or 2.70 per cent, to S$0.38 on Monday, before the news.