Construction firm, Lian Beng Group, ventures into automotive business

Lian Beng Group, a listed construction company, has successfully bid $46.2 million for a light industrial property in the buzzling automotive belt of Leng Kee Road.

The firm is venturing into the automotive business after a collaboration with renowned parallel import company VinCar - to form Wealth Assets Pte Ltd - with Lian Beng holding a major 80 percent stake. Lian Beng will finance its share of the cost of the acquisition from internal funds and/or bank borrowings.

Wealth Assets plans to develop the land at 24 Leng Kee Road, when the purchase is approved by the Housing Development Board (HDB). The property has an area of slightly over 70,000 square feet and currently houses the body shop operations of Borneo Motors Singapore (BMS).

BMS is selling the property, as it is redeveloping an existing one at Pandan Crescent along with constructing an eight-storey complex to house its various automotive businesses.

According to The Business Times, the Leng Kee assets attracted about a dozen bidders, more than half of which are believed to be in a car related business, when it was put up for tender earlier this year.

As the one kilometre stretch and the adjacent Alexandra Road are fully built up, it is almost impossible to find available space for a showroom and workshop. As such, over the years, a number of car companies have resorted to locating themselves along the boundary areas at Kung Chong Road and Chang Charn Road.