Friday, April 5, 2013

Who Hup to complete CDL's H2O Residences

The Straits Times  |  April 3, 2013

City Developments (CDL) has found a new main contractor to take over works at H20 Residences, an uncompleted condominium in Sengkang.

Construction firm Woh Hup will take over the remaining 80 per cent of the project from financially beleaguered Poh Lian Construction today.

Works ground to a halt last month when Poh Lian filed for a judicial management order to buy itself more time from creditors.

Poh Lian is a subsidiary of locally-listed United Fiber Systems.

CDL's contract with Woh Hup is worth more than $130 million - 80 per cent of the value of Poh Lian's contract.

The appointment of a new contractor is aimed at assuring buyers that the 521-unit project will be completed on time.

Its temporary occupation period is slated for the second quarter of 2015.

The Straits Times also understands that Woh Hup is one of CDL's reliable contractors.

Woh Hup is familiar with CDL's policies and its high quality standards, said insider sources.

It has worked with CDL on property developments including Bartley Residences, City Square Residences in Little India and Monterey Park in Buona Vista.

H20 Residences is one of seven ongoing projects that Poh Lian was working on.

The other developments include GuocoLand's Sophia Residence and Goodwood Residence, Bishopsgate Residence, two Housing Board projects in Bukit Panjang - Segar Grove and Senja Gateway.

Among them, H20 Residences and the two HDB projects were profitable as at Dec 31 last year.

In a 127-page court document filed by one of Poh Lian's directors, Mr Peh Pit Tat, on March 7, he disclosed that the company owed its creditors more than $60 million as at January.

Since then, engineering firm CSC Holdings announced its decision to recover about $3.5 million for work done from Poh Lian.

Its subsidiary, CS Bored Pile System, was awarded a contract by Poh Lian for soil improvement and piling works.

Mr Tam Chee Chong and Mr Andrew Grimmett from audit firm Deloitte have been appointed as Poh Lian's judicial managers.

A high court hearing on the judicial management order will be heard on Friday.

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

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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