Company Briefs: Koh Brothers Eco Engineering

Koh Brothers Eco Engineering

A Koh Brothers Eco Engineering unit has been awarded a $225.4 million contract related to the building of Circle Line 6 MRT project.

The 4km line comprises three stations that will close the Circle Line loop by connecting the HarbourFront and Marina Bay stations.

The work scope under the Land Transport Authority contract involves all civil, structural, architectural, electrical and mechanical and system works relating to the construction of cut-and-cover tunnels and other structures from the east of the planned Prince Edward station to the existing Marina Bay station.

Work will commence by the end of this year, with completion expected by 2025.

Ascendas Reit

Ascendas Real Estate Investment Trust (Ascendas Reit) has bought an office building on the fringe of the central business district in the Fortitude Valley area of Brisbane for A$83.8 million (S$90.1 million).

The property at 100 Wickham Street is fully occupied with key tenants including the State of Queensland (Department of Health) and three data centre operators.

The leases have annual rental escalations of between 3 per cent and 4 per cent, and the weighted average lease expiry of the property is 4.8 years as at June 30 this year.

Net property income yield for the first year is about 7.6 per cent, based on the sale price, not taking into account the costs of transaction.

HG Metal Manufacturing

HG Metal Manufacturing plans to give shareholders a cash distribution of 10.5 cents a share as part of a capital reduction exercise.

That represents an 18 per cent yield for shareholders based on HG Metal's last closing price of 57.5 cents. About $13.4 million will be paid out to shareholders at a books closure date yet to be determined by the board.

The cash is expected to come from HG Metal's proposed sale of its 23 per cent stake in mainboard-listed steel mesh maker BRC Asia to Esteel Enterprise for $39 million. HG Metal will also write off the firm's accumulated losses as at Dec 31, 2016 to the extent of $68.2 million.

This capital reduction exercise will not result in a cancellation of shares, or a change in the number of shares issued by the company.

The proposed capital reduction and cash distribution are subject to completion of the BRC Asia share sale, which is also subject to a vote at an upcoming shareholders' meeting.

A version of this article appeared in the print edition of The Straits Times on September 26, 2017, with the headline 'Company Briefs'. Subscribe