Lian Beng bags $120mln deal to build The Scala

The deal has boosted Lian Beng Group's order book to $965 million.

Homegrown building construction company Lian Beng Group has clinched a $119.5 million contract to build the highly sought after The Scala, a 99-year leasehold condominium development located at Serangoon Avenue 3, and in close proximity to Lorong Chuan MRT Station and NEX Mega Mall, according to a Lian beng report.

The development, which was met with overwhelming response at its launch last week, comprises five 17- to 18-storey blocks. The contract was awarded by the Hong Leong Group. In addition to the apartment units, the contract covers the construction of podium and basement carparks, clubhouse, and other recreational and communal facilities. Work on the development is expected to commence in October 2010 and be completed by the fourth quarter of 2013.

This is the second building contract the Group has secured since the beginning of its financial year in June 2010. In late June, the Group was awarded a $88.28 million contract by UOL Development to build a 36-storey residential development at Spottiswoode Park Road.

This latest contract will boost Lian Beng’s order book to approximately $965 million.

Mr Ong Pang Aik, Managing Director of Lian Beng, said, “The addition of this new contract serves to reinforce our position in the industry. We look forward to further growing our project portfolio as we ride on the positive momentum of the private residential sector.”

For the financial year ended 31 May 2010, Lian Beng reported a 41% growth in net profit attributable to shareholders to $24 million. This came on the back of a 12% improvement in revenue to $346 million. The Group also strengthened its financial position, with cash and cash equivalents up nearly three times to $70.8 million, and net gearing reduced to 0.17, from 0.67 a year ago.