Tiong Seng units bag S$124m worth of contracts for en bloc sites

MAINBOARD-LISTED construction and civil engineering contractor Tiong Seng Holdings announced on Tuesday that its subsidiaries have bagged contracts for two private-home projects worth S$123.9 million in all, taking the group's construction order book to about S$1 billion until 2023.

Wholly-owned subsidiary Tiong Seng Contractors snagged the S$99.6 million deal to build FEC Skypark's Hyll on Holland (see amendment note) in Holland Road, which will feature six 12-storey apartment blocks, two basement car parks, a swimming pool, and other facilities.

FEC Skypark is a special-purpose entity between Koh Brothers Group and Hong Kong-listed Far East Consortium to redevelop collective-sale sites Hollandia and The Estoril.

Meanwhile, a 60 per cent-owned joint-venture company won the S$24.3 million contract to build a 15-storey apartment block at the former Cairnhill Heights, which was sold en bloc in 2018 to a tie-up between Tiong Seng Holdings and civil engineering company Ocean Sky International.

The company is a joint venture between wholly-owned Tiong Seng Civil Engineering, and Ang Tong Seng Brothers Enterprises, a wholly-owned subsidiary of Ocean Sky, which holds the remaining 40 per cent. Ocean Sky's board said on Tuesday that the group will progressively recognise the share of results of the joint venture from the financial year to Dec 31, 2020 onwards.

Tiong Seng's board told the bourse that the site possessions for the contracts are expected to be in February 2020, while the contracts are not expected to materially affect the group's net tangible assets and earnings per share for the year to Dec 31, 2020.

Chief executive Pek Lian Guan said: "Backed by our positive track record and portfolio of private residential projects, we are pleased to make headway early on in 2020 with back-to-back contract wins. Of notable mention, Hollandia Residences is also the second follow-on contract after the Artra condominium project awarded by the FEC group of companies."

Amendment note: An earlier version of the story referred to the Hyll on Holland redevelopment project by the former property name, Hollandia. The article has since been updated to reflect the new name.