HOME-GROWN contractor Lian Beng Group has clinched the contract to build Singapore's most prestigious brand-name residences.
The mainboard-listed firm yesterday announced it has won a $99.5 million award to build the Ritz-Carlton Residences - the five-star hotel brand's only such project in Asia.
The Ritz-Carlton Residences has already seen some units sold at more than $5,000 psf. -- PHOTO: HAYDEN PROPERTIESThe award marks Lian Beng's entry into the high-end, luxury property market. The firm has set up a new unit, Millennium International Builders, which will build the project and focus on expanding into the luxury property market.
Lian Beng's managing director, Mr Ong Pang Aik, told The Straits Times there is a perception that ultra-luxury construction projects go only to foreign companies.
'So we're proud that a local firm has won this award. It's the first of many to come for Millennium,' he said.
There was strong competition for the tender, with many foreign contenders, said Mr Ong.
'But we have 30 years of experience, and in recent years handled many technically challenging projects, and I believe this - and our attractive tender price - gave us an edge,' he added.
All the 56 units at the Ritz-Carlton Residences in Cairnhill will come with designer fittings and appliances.
Mr Ong said this is an opportunity for Lian Beng to expand its foothold in the construction of niche projects which require specialised technical knowledge in dealing with challenging design features.
Among the features of the property, located on the site of the former Horizon View, are a lap pool, a library, a wine cellar, a kitchen and a 24-hour concierge service managed by the Ritz-Carlton.
The 32-storey project, which offers three- and four-bedroom units and two penthouses, has already sold some units - at more than $5,000 psf last year.
Lian Beng's latest foray is a marked contrast from the basic HDB flats it started building when it was set up in 1973.
Although it still builds HDB flats, Lian Beng has moved on to private mass-market condos and commercial projects.
It has also moved selectively into property development, such as Kovan Residences, of which it has a 19 per cent stake.
This latest contract will boost Lian Beng's order book to about $770 million.
The firm recently reported a tripling of its full-year net profit to $11.9 million, up from $3.5 million a year ago, on the back of the recent building boom.
Mr Ong said yesterday that surging construction costs will not be a factor in building the Residences as the firm has already 'locked in' the supply of materials needed.
The Ritz-Carlton project is a partnership between Ritz-Carlton and Hayden Properties, which is a 50-50 joint venture between real estate firm KOP Capital and Emirates Investment Group unit Emirates Tarian Capital.
Hayden's group chief executive, Ms Ong Chih Ching, said yesterday the new partnership is 'a reflection of our belief in working with homegrown companies'.
Lian Beng said it will begin construction this quarter. The project is due for completion by the end of 2010.
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