Lian Beng wins coveted Ritz-Carlton Residences job

Aug 26, 2008
Lian Beng wins coveted Ritz-Carlton Residences job
By Jessica Cheam

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 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.