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Construction firm Lian Beng Group has secured its biggest work contract valued at $435 million from the Housing and Development Board (HDB) for the construction of a high-rise multi-user industrial complex at Kim Chuan Road at Defu South.
The building contract was awarded to the group’s wholly-owned unit, Lian Beng Construction (1988).
Construction work is expected to start in the second quarter of 2017 and will take about 36 months to complete. The contract also requires Lian Beng to set up eight 22kV electrical substations and one 66kV electrical substation for SP PowerGrid.
With this construction deal, Lian Beng’s order book soared to around $644 million on Monday (6 March), and this is expected to boost its revenue up to FY2020.
“Winning our largest ever construction contract is a key milestone for Lian Beng. We will continue to leverage on our track record to secure sizeable building contracts to further strengthen our order book,” said Ong Pang Aik, Executive Chairman of Lian Beng.
Founded in 1973, Lian Beng Group is one of Singapore’s leading homegrown construction companies. The firm, which is also involved in local and overseas property development, was listed on the mainboard of the Singapore Exchange in 1999.
Meanwhile, the upcoming multi-user industrial complex, dubbed Defu Industrial City, is part of the Housing Board’s plans to transform the area’s industrial estate into “a Green and Sustainable Industrial Park of Tomorrow”.
Under the HDB’s master plan, existing factories in the 30-year-old Defu Industrial Estate will be progressively redeveloped into new and modern industrial complexes, with the aim of optimising land use by increasing their overall gross floor area five-fold.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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