Catalist-listed builder Sysma Holdings has won an $18.6 million contract to build a home in a Good Class Bungalow (GCB) Area, the group said yesterday.
Wholly owned subsidiary Sysma Construction is set to put up a two-storey bungalow - complete with basement, attic and swimming pool - at 28 Jalan Kampong Chantek, off Dunearn Road, in a deal with what was described as "an established private owner".
It was reported in February last year that Super Group co-founder Ronald Te had bought the property for $27.59 million, or $1,003 per square foot based on the freehold land area of 27,504 sq ft.
The existing seven-bedroom house, which was vacant when it was bought, has a built-up area of some 11,000 sq ft, with two floors, an attic and a swimming pool. It falls within the Swiss Club Road GCB Area.
Sysma Holdings said its 20-month contract will start when a demolition permit is issued by the relevant authorities, which is expected to happen later this month. The contract is not expected to have any material impact on earnings or net tangible assets per share for the year to July 31 next year, it added.
Construction company MMP Resources is acquiring a 50 per cent stake in a joint venture company, which owns an operating gas field in Russia, for $25 million. It will be deemed a "mineral, oil and gas company" post-acquisition.
Mainboard-listed MMP entered into a binding term sheet to purchase the stake in the joint venture company from Lloyds Energy, a "gas to wire" liquefied natural gas (LNG) player that produces, stores and sells LNG, according to an exchange filing yesterday.
The joint venture company owns the Asia One gas field in Russia's North-west region, valued at $50 million by MMP-appointed independent valuer Gaffney, Cline & Associates.
MMP will pay Lloyds cash - in a first tranche of $250,000 and the remaining sum in a second tranche. But Lloyds can opt to be paid the second tranche fully or partially with shares in MMP.
MMP said it is looking to diversify into the natural gas and energy business to provide shareholders with better returns and long-term growth. In addition, the company intends to dispose of its existing Japanese assets after the acquisition. It did not name the joint venture company incorporated in Russia, but said it mainly supplies natural gas.