A SUBSIDIARY of mainboard-listed SHS Holdings on Wednesday secured two modular construction contracts amounting to NZ$30 million (S$28.1 million) for the construction of a serviced apartment project and a hotel on New Zealand's South Island.

The first contract, signed through a letter of agreement, will see SHS subsidiary - TLC Modular - and Global Yellow Pages subsidiary Remarkables Residences, work on the development of a 79-keys service apartment comprising 217 modules in Queenstown, New Zealand.

It is expected to be completed in FY2019.

"The parties will proceed to finalise the terms and enter into a fixed-price construction contract," SHS said in a filing with the Singapore Exchange on Wednesday.

The second contract, signed with Coldwater Properties, is for the supply of 20 modular units for the first phase of Godley Hotel's refurbishment in Tekapo, New Zealand, SHS added.

This project is expected to be completed later in FY2018.

Said Henry Ng, SHS group chief executive officer: "We are pleased that our initial efforts back in 2017 to grow this new business of modular construction have finally begun to bear fruit with these two new contracts secured for the New Zealand market."

SHS shares closed at S$0.225, unchanged from the previous trading day.