Mapletree Industrial Trust awards S$127.1m Kallang contract to Lum Chang

CONSTRUCTION player Lum Chang Holdings on Monday said it has secured a tender for an industrial project at Kallang Way, which is part of the Geylang planning area.

The contract, valued at about S$127.1 million, is to be executed with DBS Trustee as trustee of Mapletree Industrial Trust (MIT).

The project is scheduled to be completed over 21 months. Its scope of works includes the construction of two multi-user general industrial buildings.

The contract commencement date is slated for late November 2020.

With the latest award, the total outstanding value of construction works yet to be reported as revenue for Lum Chang's wholly-owned subsidiary Lum Chang Building Contractors amounts to about S$1.9 billion.

Earnings from the contract will be recognised progressively according to the stages of its completion, said the mainboard-listed company.

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The project is not expected to have a material financial impact on the group's results for its current fiscal year ending June 30, 2021, Lum Chang added.

Separately, between Nov 5 and 11 this year, Beverian Holdings acquired 744,600 shares of Lum Chang for S$0.35 apiece or S$260,582 in total. Lum Chang director David Lum Kok Seng maintains interests of more than 50 per cent in Beverian's share capital. The acquisitions increased his total interest in Lum Chang to 21.86 per cent.

Shares of Lum Chang finished Friday at S$0.34, down S$0.02 or 5.6 per cent. MIT units rose S$0.02 or 0.7 per cent to close at S$3.01.