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Singapore : Soilbuild Construction : Award of new contracts
Publish Date : 02-Jan-2020
The Board of Directors of Soilbuild Construction Group Ltd. (the "Company", and together with its subsidiaries, the "Group") is pleased to announce that the Group had been awarded the following new contracts (the "New Contracts") subsequent to the award of the contract for the proposed erection of 4 blocks of 8 & 9 storey multiple-user general industrial factory development with carpark, industrial canteen and other ancillary facilities at Tai Seng Avenue announced on 18 November 2019:
1. A contract for the proposed erection of a 10-storey multi-user general industry factory
On 30 December 2019, SB Procurement Re. Ltd., a wholly owned subsidiary of the Company, was awarded a contract by SB (Yung Ho) Investment Pte. Ltd. (the "Project Owner") for the proposed erection of 10-storey multi-user general industry factory (total 186 units) with temporary ancillary industrial canteen and mezzanine for ancillary office at Corporation Drive, Singapore (the Corporation Drive Project").
The contract sum of the Corporation Drive Project is approximately S$58.1 million. The Corporation Drive Project is expected to be completed in the second quarter of the year 2021.
The Corporation Drive Project is in the ordinary course of business of the Group, and would constitute a mandated interested person transaction to which the interested person transaction mandate (as renewed by the shareholders of the Company at its annual general meeting on 26 April 2019) (the "IPT Mandate") will apply. The Project Owner would be regarded as a mandated interested person for purposes of the IPT Mandate; it is a wholly-owned subsidiary of Soilbuild Group Holdings Ltd. (of which Mr. Lim Chap Huat, the Company's Executive Chairman, is the sole shareholder).
Save for Mr. Lim Chap Huat and Ms. Lim Cheng Hwa, the Company's Non-executive Director, both of whom are also directors of Soilbuild Group Holdings Ltd. and other than as disclosed above, none of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the Corporation Drive Project (other than through their respective shareholdings in the Company).
2. A subcontract for supply and delivery of precast components
The above contract was preceded by a subcontract which was awarded on 28 November 2019.
In this regard, Precast Concrete Re. Ltd., a wholly owned subsidiary of the Company, was awarded by a third-party main contractor, a subcontract worth approximately S$15.6 million for the supply and delivery of precast components (including prefabricated bathroom unit (PBU)) for a HDB project (the "HDB Project") in Punggol, Singapore.
The supply and delivery of the precast components shall be in accordance with the time schedule and construction programme of the HDB Project. The supply and delivery of the precast components are expected to be completed in the last quarter of the year 2020.
The awards of the New Contracts are not expected to have a material impact on the consolidated net tangible assets per share and consolidated earnings per share of the Group for the current financial year ending 31 December 2019.
