Lum Chang wins $76.5m contract from A-Reit

August 22, 2008
Lum Chang wins $76.5m contract from A-Reit
By UMA SHANKARI

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.