A Centurion-Lian Beng joint venture has been awarded a $40.2 million to lease a plot of land to build a workers’ dormitory.
The 7,044.8 sqm land, with a lease of 30 years, is at Ubi Avenue 3, and can be built a dormitory with 1,650 beds.
The joint venture, Centurion-Lian Beng (Ubi), is 51% held by Centurion, known for operating a chain of workers and students’ dormitories, and 49% held by Lian Beng, a leading construction company that also has interests in workers accommodation and property development.
“The tender was submitted in the ordinary course of business of the group of providing dormitory accommodation,” says Lian Beng.
“The group views the tender as a good opportunity to grow its dormitory business and to build on the group’s existing workers accommodation portfolio, where the group can derive rental returns which will be added to the earnings of the group,” adds Lian Beng.
According to Centurion in its separate but related announcement, the total cost of this development, including the land price, will be around $85 million.
Centurion shares closed Jan 13 unchanged at 34 cents, up 3.03% over the past year; Lian Beng shares closed Jan 13 at 52 cents, up 0.97% for the day and down 5.45% over the past year.
