SINGAPORE (Dec 19): Lian Beng Group’s wholly-owned subsidiary, L.S. Construction, has received a letter of intent (LOI) from Oxley Serangoon for a building contract worth $199.5 million.

Lian Beng (Serangoon), another wholly-owned subsidiary of Lian Beng, holds 20% of the entire paid-up share capital of Oxley Serangoon.

The contract is for the proposed redevelopment of Serangoon Ville, a former HUDC estate at Serangoon North Avenue 1.

The construction works for the proposed 1052-unit residential development will include seven blocks of 14-storey residential flats, three blocks of 2-storey strata-landed townhouse with basement, five commercial shops, two basement car parks, a swimming pool, and ancillary facilities.

The residential project is jointly developed by a consortium comprising Lian Beng, Oxley Holdings, KSH Holdings, and Apricot Capital.

The contract period is 40 months and is expected to commence in November 2018.

Including this contract, Lian Beng’s order book will be lifted to approximately $1.04 billion. The group says this will provide a sustainable flow of activity through FY2022.

“We are pleased with this sizable contract win as it increases our construction order book to beyond $1 billion. We can look forward to healthy construction revenue levels for the next few years,” says Lian Beng’s executive chairman, Ong Pang Aik.

Lian Beng says the contract is not expected to have a material financial impact on its net tangible assets per share and earning per share for the current financial year ending May 31, 2018.

Shares of Lian Beng closed half a cent lower at 70.5 cents on Tuesday.