Friday, March 22, 2013

CDL seeks new builder for condo


Works halted at Sengkang project as Poh Lian runs into financial difficulties

The Business Times - March 19, 2013

DEVELOPER City Developments (CDL) is looking for a new contractor to take over work on a Sengkang West project hit by the financial woes of Poh Lian Construction.

Building works at H2O Residences have ground to a halt, with only about 20 per cent of the 521- unit condominium completed.

It is due to be finished by the second quarter of 2015.

A CDL spokesman said yesterday: "We would like to assure all customers that the expected indicative date for issuance of temporary occupation permit for H20 Residences is on schedule and within the timeline committed."

The condominium is one of seven projects Poh Lian was working on before it hit trouble.

It applied for a judicial management order earlier this month, in a move that buys it more time to come up with a resolution instead of winding up.

Two of its projects - Goodwood Residence and Sophia Residence - are being developed by GuocoLand. The condominiums have chalked up cost overruns amounting to about $25 million in total for Poh Lian.

"As we are reserving our rights against Poh Lian, it will not be appropriate to disclose our plans at this stage," said GuocoLand in a statement.

"We are in talks with several contractors as we do our best to resume work on the sites as soon as possible."

It added that it will inform buyers once a new contractor is finalised.

Poh Lian was also building two Build-To-Order HDB projects in Bukit Panjang - Segar Grove and Senja Gateway.

The Housing Board said: "We are making preparations to swiftly procure the services of a new contractor to complete the remaining works in a timely manner, in the event that the employment of the existing contractor has to be terminated."

It said it will also inform buyers of any possible delays.

Segar Grove is about 80 per cent completed while only 40 per cent of Senja Gateway has been built.

Mr Tam Chee Chong and Mr Andrew Grimmett from audit firm Deloitte & Touche have been appointed as the judicial managers. They have the power to look for new investors, distribute assets and hold negotiations with various stakeholders and creditors.

A hearing on the judicial management application will take place on April 5.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg

No comments:

Post a Comment