Order Book Swells For KSH And Lian Beng

Source : The Business Times, March 13, 2008

KSH bags $121m Sentosa condo job; Lian Beng nets two deals worth $90m

RIDING the continuing boom, two construction firms announced big contracts yesterday.

KSH Holdings said it has won a contract worth more than $121 million for the construction of a luxury condominium, Seascape at Sentosa Cove, which is jointly owned by Ho Bee Investment and IOI Land.

And Lian Beng Group said it has been awarded two contracts worth $90.2 million in total - one from Voda Land for the construction of a condominium, Amber Residences, and the other for an industrial building at Paya Lebar iPark, awarded by Scorpio East Properties.

KSH said the Sentosa contract brings its construction order book to more than $614 million. Work on the 151-unit Seascape is scheduled to start next month and is expected to be completed in 28 months.

'This is our fourth high-end residential project at Sentosa Cove since The Berth By The Cove and The Berthside, which were awarded in June 2004 and completed in October 2006, and the fifth for us here including One°15 Marina Club,' said KSH executive chairman and managing director Choo Chee Onn.

KSH's order book has grown more than 162 per cent in less than 16 months, Mr Choo said.

Lian Beng said its two contracts bring its order book to about $700 million.

The Amber Residences contract is worth $73.5 million while the design-and-build contract for the building at Paya Lebar iPark is worth $16.7 million. Work on Amber Residences is expected to start in May 2008 and will be completed over 30 months, while the other contract is expected to be completed by early 2009.

Both companies are gunning for more contracts. 'The demand for construction services is still very strong, and there are many more projects out there for tender,' said Lian Beng's managing director Ong Pang Aik.

Analysts agree, saying that even as the property market takes a breather, the construction sector continues to recover, driven by a new phase of nationwide projects.

'We are still sanguine about the sector's prospects, given the development plans in place for the island, and the visibility it offers against the backdrop of uncertainty tainting the global economy,' Phillip Securities analyst Stella Tan said in a recent note.

KSH shares gained 1.5 cents to close at 41.5 cents yesterday, while Lian Beng's stock rose half a cent to close at 40.5 cents.