Lum Chang bags S$85.7m construction contract from own JV

A SUBSIDIARY of property and construction group Lum Chang Holdings has been awarded a contract for building works at 2 Serangoon Road, formerly known as The Verge.

The contract, awarded to Lum Chang Building Contractors Pte Ltd, is valued at S$85.7 million with the target completion expected to be in the second half of 2019.

The contract was awarded by Corwin Holding Pte Ltd, a joint venture vehicle for Lum Chang and a fund managed by LaSalle Investment Management Asia Pte Ltd.

The scope of the contract includes the demolition of the existing main block and its reconstruction for use as a mixed development with a retail podium and serviced residence.

The adjoining annex block will undergo major refurbishment to include retail and parking facilities and also a rooftop commercial-cum-culture space.

While the contract is not expected to have a material impact on Lum Chang's profits for the current financial year, it brings the total outstanding value of construction works yet to be reported as revenue to S$600 million, the group said in a filing on Tuesday evening with the Singapore Exchange.

Lum Chang shares ended two Singapore cents or 5.2 per cent higher at 40.5 Singapore cents on Tuesday.