WITH a subsidiary of Lian Beng Group being investigated by the authorities for allegedly leasing out a building illegally, the construction group and property develop said in a bourse filing on Wednesday (Oct 26) that it has "taken steps" to meet leasing requirements.
The potential violations by the subsidiary, Wealth Assets, which is 80 per cent-owned by Lian Beng, was first reported by The Straits Times on Tuesday. The remaining 20 per cent is owned by Vincar Assets.
The report said that the light industrial development in Leng Kee Road, which is mainly tenanted by car dealers, was zoned as a single-user development. This means that the owner of the building, named Leng Kee Autopoint, should fully occupy and utilise 100 per cent of the gross floor area for its business needs and operations.
JTC, acting on public feedback that there was unauthorised subletting there, carried out an inspection on Oct 14.
In response to queries from The Straits Times, JTC said that lessees can seek its approval to sublet up to 30 per cent of their gross floor area to non-related companies with approved modes of usage.
In its bourse filing on Wednesday, Lian Beng said: "The Group has taken steps and will meet the 30 per cent sub-letting limit on gross floor area. The financial impact on the Group is not expected to be material for the financial year ending May 31, 2023."
Separately, the Singapore Civil Defence Force (SCDF) detected several fire-safety violations at the premises of EuroSports Global, one of the major tenants of the building. Some violations include unauthorised fire safety works and unauthorised change of use at the premises. The SCDF has also taken enforcement action by issuing notices of offence.
The Catalist-listed company, a luxury-car distributor, said in a bourse filing on Wednesday that it has not received a report of inspection from the SCDF, and that it would assess the impact on its operations when the report arrives.
Lian Beng's shares went up 1 per cent, or S$0.005, to close at S$0.50. EuroSports Global shares finished flat at S$0.19 on Wednesday.