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KSH targets China and UK as engines of growth

By Michael Lim

/ KSH Holdings Limited |

June 3, 2016 9:00 AM SGT

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Listed construction and property developer KSH Holdings is looking outside of Singapore as it plots its next phase of growth. The two countries on its radar are China and the UK, where KSH already has projects.

The number of property development projects have slowed considerably owing to the property cooling measures. That is why KSH has gone overseas, says executive chairman and managing director Choo Chee Onn.

The completion of the Liang Jing Ming Ju Phase Four Sequoia Mansion project in Beijing contributed $15 million to the firm’s sales revenue, which helped push KSH’s net pro fit up 48% to $61.5 million for the financial year ended March 31.

Following the success of its Sequoia Mansion project, KSH says its current township development project in Gaobeidian, Hebei province will continue to boost the firm’s earnings over the next couple of years. KSH has a 22.5% stake in the project. The other joint-venture (JV) partners are Beijing Jia Hua Hong Yuan Investment, Oxley Holdings, Lian Beng Group, Heeton Holdings and Zap Piling.

The township is a 45-minute drive from Beijing and, upon completion, will house some 50,000 households. The JV partners plan to launch 3,050 residential units, comprising 1,600 mass-market units and 1,450 high-end units. The first phase of the project is expected to be launched at the year-end.

Construction works for the project are targeted to start in July and are scheduled for completion in two years. Investment costs for the first phase — including the 3,050 residential units which KSH will be taking charge of — is estimated at 12.7 billion renmimbi ($2.66 billion).

Besides China, KSH has also taken a 15% stake in a consortium led by Heeton Group to invest in a mixed-use development in Leeds, the UK. The other JV partners are Lian Beng and Ryobi Kiso.

The 106,722 sq ft site is located in Central Leeds. The site was purchased with planning approval in place for the development of a one million sq ft mixed-use scheme. The partners are now in the midst of redesigning the development. On the site is also an existing building that is being refurbished, and will be converted into a budget hotel.

In Singapore, KSH is putting more focus on civil engineering work, in view of the slowing of building projects because of the lacklustre property market. KSH is also investing $5 million to $8 million to redevelop its prefabrication plant on Senoko Road, which is scheduled to complete within the next two years.

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