TWO units of Soilbuild Construction Group : S7P 0% have bagged S$24.3 million in new contracts, the company said in a bourse filing on Wednesday (Jan 10).

Soil-Build, a wholly-owned subsidiary, has been awarded a construction contract by SB (2TS) Investment for demolition and piling works for a multi-user industrial development at Tuas South Avenue.

Construction for the development – billed as the Tuas South Project – is set to start in the first quarter of 2024 and to be completed by Q3.

Soilbuild Construction flagged that the Tuas South Project is in the ordinary course of business of the group, and constitutes a mandated interested person transaction where the interested person transaction mandate (IPT mandate) will apply.

This is because SB (2TS) Investment is considered a mandated interested person, as it is a wholly-owned subsidiary of Soilbuild Group, of which Lim Chap Huat, Soilbuild’s executive chairman, is the sole shareholder.

Besides Lim, Lim Han Ren and Lim Cheng Hwa, who are directors of Soilbuild Group Holdings, none of the directors or controlling shareholders of Soilbuild Construction have any interest, direct or indirect, in the Tuas South Project, other than through their respective shareholdings in the company.

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The company added that its audit committee is of the view that the transaction is on normal commercial terms and is not prejudicial to the interests of the company and its minority shareholders.

Meanwhile, Precast Concrete, a wholly-owned subsidiary of the company, has been awarded two Housing and Development Board (HDB) contracts for the supply and delivery of precast components in Singapore. One is an HDB term contract, while the other is for an HDB housing project in Tengah.

Both the HDB precast and prefabrication contracts are expected to commence in the first quarter of 2024 and be completed by the second quarter of 2026.

The new contracts – which total up to about S$24.3 million – bring the group’s order book to around S$588.6 million as at end-June 2023.

The contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of the group for the current financial year ending Dec 31, 2024.

Shares of Soilbuild Construction closed at S$0.035 on Wednesday, up S$0.006 or 20.7 per cent, before the announcement.