SHS secures modular construction contracts worth S$28 million in New Zealand
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1 SHS HOLDINGS LTD NEWS RELEASE SHS secures modular construction contracts worth S$28 million in New Zealand First contract is to design and build a 79-keys serviced apartment project for Global Yellow Pages in Queenstown, New Zealand Second contract is for the first phase of Godley Hotel s refurbishment project in Tekapo, New Zealand, involving 20 modular units Both clients are using these initial contracts to commence longerterm building programmes for their respective property portfolios Singapore, 2 May 2018 Mainboard-listed SHS Holdings Ltd. ( 四合成有限公司 ) ( SHS or the Company, and together with its subsidiaries, the Group ) announced today that its subsidiary, TLC Modular Pte Ltd, has secured two modular construction contracts amounting to NZ$30 million (approximately S$28.1 million) to build a serviced apartment project and a hotel consisting of 20 modular units in New Zealand s South Island. The first contract, through a Letter of Agreement, was for a design-and-build contract with Remarkables Residences Limited, a subsidiary of Singapore-listed Global Yellow Pages Limited, for the development of a 79-keys service apartment comprising 217 modules in Queenstown, New Zealand which is targeted to be completed in FY2019. The parties will proceed to finalize the terms and enter into a fixed-price construction contract. The second contract, signed with Coldwater Properties Limited, is for the supply of 20 modular units for the first phase of Godley Hotel s refurbishment in Tekapo, New Zealand. This project is expected to complete later in FY2018.
2 Page 2 of 6 Said SHS Holdings Group Chief Executive Officer Mr Henry Ng: We are pleased that our initial efforts to grow this new business of modular construction back in 2017, have finally begun to bear fruit with these two new contracts secured for the New Zealand market. We are also gratified that our first project the 88-room Cosa Hotel in Christchurch, New Zealand -- is well on track for completion in the second half of Cosa Hotel will be the first approved modular hotel to be built in New Zealand and its progress and quality have been the springboard for these two new contracts secured. Looking back, our journey to penetrate the New Zealand market with our modular technology had not been smooth. We had to convince skeptics to adopt our new technology in construction, as well as secure the building permits for our type of unconventional building methods. We are proud that despite these challenges, our team had managed to cross these hurdles. We are confident that more of such contracts will flow in for New Zealand, a country that is currently experiencing strong growth in tourism and a severe shortage of affordable homes. The contracts are not expected to have a significant contribution to the Group s FY2018 results, but will add to the Group s results favourably in FY2019. Both clients are using these initial contracts to commence longer-term building programmes for their respective property portfolios using Modular Off-Site construction technology. - End -
3 Page 3 of 6 Artist s impressions of the Cosa Hotel, Christchurch, New Zealand, and one of the interior rooms
4 Page 4 of 6 Artist s impressions of the serviced apartment project for Global Yellow Pages in Queenstown, New Zealand, and one of the interior rooms
5 Page 5 of 6 Artist s impression of the first phase of Godley Hotel s refurbishment in Tekapo, New Zealand, and one of the interior rooms
6 Page 6 of 6 Issued on behalf of SHS Holdings Ltd. by: Waterbrooks Consultants Pte Ltd Tel: (+65) Wayne Koo (M): wayne.koo@waterbrooks.com.sg Ho See Kim (M): seekim@waterbrooks.com.sg About SHS Holdings Ltd. SHS Holdings Ltd. is an established group with core businesses in corrosion prevention ( CP ), steel engineering services (SSF), modular construction and solar energy. Established in 1971, the CP business has successfully moved up the value chain to become a leading provider to the marine, oil and gas, construction and infrastructure industries in Singapore. SHS Holdings Ltd. has a strong niche in specialised tank coating services, and large-scale plant operations that are supported by a fully-equipped facility in Singapore. Its proven capability in corrosion prevention services is underlined by its status as a resident contractor for premier shipyards in Singapore. The steel engineering business is operated through wholly-owned subsidiary, Hetat which has a fully-equipped steel fabrication plant of approximately 195,000 sq ft located in Tuas, Singapore. It is currently undertaking projects in Singapore, Malaysia and Mongolia. It recently added new capabilities in solar energy and modular construction, which will be additional growth engines for the Group. SHS Holdings Ltd. is listed on the Mainboard of SGX-ST. For further information, please visit the Group s website at
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