Friday, August 22, 2008

Lum Chang Wins $76.5m Contract From A-Reit

Source : The Business Times, August 22, 2008

ASCENDAS Real Estate Investment Trust (A-Reit) has awarded a $76.5 million design-and-build contract to a unit of Lum Chang Holdings for the construction of a new eight-storey tower and a three-storey ancilliary podium in Changi Business Park.

The building will be on land with an area of over 28,000 square metres - one of the biggest developments there, Lum Chang said. The project is due to be completed by October 2009.

The contract marks the second time that A-Reit has appointed homegrown construction company Lum Chang for a Changi Business Park development.

In 2007, Lum Chang was awarded a $71.8 million tender to build an eight-storey office building - the first of three towers in the Changi Business Park commercial development.

Construction of this building as well as the basement carpark is currently underway, and progress is well on track for completion in the first quarter of 2009.

The building has been leased to Citigroup to house up to 4,000 operational and backroom staff.

The latest contract brings the total value of contracts Lum Chang still has in progress to over $456 million, the company said.

The newest project is expected to be 60 per cent completed by the end of the financial year ending June 30, 2009.

The earnings from this contract will be recognised progressively according to the stage of completion, Lum Chang said.

Lum Chang's shares lost two cents to close at a 52-week low of 19 cents yesterday. A-Reit's stock similarly shed two cents to end the day at $2.30.

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