Boustead Projects unit wins over $70m contract to design and build high-tech manufacturing facility

SINGAPORE - Real estate solutions company Boustead Projects on Tuesday (Feb 19) said its wholly-owned subsidiary, Boustead Projects E&C, has won a contract worth over $70 million to design and build an integrated advanced high-tech manufacturing facility in Singapore.

The facility will have a gross floor area of approximately 36,300 square metres and is expected to be completed by the second quarter of 2020. It will expand the client's existing operations in Singapore.

The contract brings the group's order book backlog to approximately $741 million.The backlog comprises unrecognised project revenue remaining at the end of December 2018 plus the total value of new orders secured since then.

Boustead Projects said the contract is not expected to have a material impact on its profitability, earnings per share (EPS) and net tangible asset value per share in the current financial year ending March 31, 2019.

"However, it is expected to have a positive material impact on the Boustead Projects group's profitability and EPS for the financial year ending March 31, 2020," the company said in a statement.

In the statement Thomas Chu, managing director of Boustead Projects, said the latest contract award consolidates the company's competitive edge as a local leading progressive builder for high-end, Industry 4.0-ready industrial facilities. It also extends its track record in the technology industry to over 440,000 square metres.

"With the capture of nearly $600 million in contracts in just the past three months, our order book backlog is at over three times our average annual design-and-build revenue over the past five years," Mr Chu said. The contracts include the $242 million JTC Multi-Storey Recycling Facility, Razer South-east Asia headquarters and the over $200 million Surbana Jurong Campus.

Mr Chu said the group will continue to focus its regional business development efforts in making further inroads into strategic high-value sectors and identified areas of growth.

He added that the company has "invested substantially" in advanced capabilities with Industry 4.0 transformation standards and market-leading methodologies. This includes 7D building information modelling, virtual design and construction, design for manufacturing and assembly, augmented and virtual reality, drone technology and integrated digital deliver.