MAINBOARD-LISTED builder Low Keng Huat (Singapore) said in a regulatory filing on Sunday that it will be able to withstand short-term cash flow pressures due to the Covid-19 pandemic on the back of its liquidity and support from banks. 

 

As at Jan 31, 2020, the company has cash and cash equivalent of S$68.6 million and unused available banking lines of S$194.0 million.

 

" Approximately 92 per cent of our loans are long term in nature and are secured against our properties. We also expect disposal proceeds of S$67 million from the partial sale of our investment in AXA Tower in June 2020," it said in response to whether the company' s balance sheet is strong enough to withstand cash flow pressures amid the pandemic. 

 

The company was responding to questions received from the Securities Investors Association (Singapore), or Sias, and shareholders ahead of its annual general meeting on June 16. 

 

" Of course, given the dynamic nature of the pandemic at hand and any further deterioration of the economy over a prolonged period due to Covid-19, this would necessitate a further review of which we are sparing no effort in doing so on a day-to-day basis," it added. 

 

In the midst of the downturn, the group said, it will focus on the successful completion and sales of development projects and optimising operational requirements in investment and hotel segments. It will also continue to be " selective and strategic" in acquisitions and remain disciplined in capital management.

 

On whether the company has plans to undertake cost-cutting measures, it said that it will postpone non-critical capital expenditure to conserve cashflow and will focus on increasing revenue from development projects and retaining tenants at its investment properties. 

 

In response to shareholders' concerns regarding poor outlook for the food and beverage (F& B) sector, the group said that it plans to maintain its F& B business at Carnivore Brazilian Churrascaria, and will focus on cost reduction initiatives and implementing new channels of sales including enhancement of digital marketing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six bids have been received for a 99-year leasehold mixed-use site in Paya Lebar Central. The top bid of S$1.67 billion or S$942.56 per square foot per plot ratio (psf ppr) came from entities linked to Australia' s Lend Lease group.

A consortium comprising Keppel Land Li Ka-shing' s Cheung Kong Holdings/Hutchison Whampoa and Singapore Press Holdings was the second highest bidder. It offered nearly S$1.54 billion or S$866.56 psf ppr for the site.

The lowest bidder, a unit of Ho Bee Land, offered S$889.18 million or S$501.35 psf ppr for the site.

The tender for the site, conducted by Urban Redevelopment Authority (URA), closed on March 31.

Nearly 55 per cent of the project' s maximum gross floor area (GFA) of about 1.77 million square feet has to be for office use. The rest of the space can be for additional office, retail, entertainment, F& B and residential uses. Hotel use is not allowed.

URA has limited the number of strata lots to just five for the entire office component of at least 968,751 sq ft GFA.

For the retail and activity-generating uses, not more than three strata lots will be allowed. The residential component can comprise up to 440 individually strata titled units.