Diversified property developer SLB Development launched today its initial public offering in connection with its proposed listing on the Catalist Board of the Singapore Exchange.

SLB IPO

Net proceeds

$51.4 m

Use of gross proceeds

32.9% to replenish land bank and overseas expansion;
33.6% to fund existing property development projects in the pipeline, & as general working capital purposes

Market cap

$210 million

IPO shares

26.07% of post-invitation share capital

Lian Beng Group’s stake in SLB

73.93%, post-IPO

Invitation

Closes noon, 18 April

It will issue 238,000,000 new shares at S$0.23 each.

SLB is spun-off from mainboard-listed Lian Beng Group, which has extensive experience in the property development industry over the last 17 years. 

SLB has undertaken property development projects spanning across the residential, mixed-use as well as industrial and commercial sectors, and projects ranging from small to large scale. 


Its portfolio comprises five residential and mixed-use property developments, namely Spottiswoode Suites, KAP & KAP Residences, Floravista, Floraview and Floraville, NEWest, The Midtown & Midtown Residences; three industrial property developments, namely Eco-Tech @ Sunview, Mandai Foodlink, and T-Space @ Tampines which is slated to achieve completion in FY2019; and a freehold commercial property development in Singapore, namely Hexacube.

matthewong4.18“With a strong heritage in construction under Lian Beng Group, we have the requisite knowledge to manage costs and processes efficiently, and leverage on the existing features of land sites or buildings in redevelopment to add value to our property development projects.”

-- Matthew Ong (photo),
Executive Director and CEO of SLB.

Among other business strategies, SLB employs a joint venture strategy, working with other established property developers to manage risks and undertake larger property development projects.

The management team has in-depth property development and construction knowledge, thereby allowing SLB to source for and identify suitable sites with good potential for development and assess whether such sites offer good investment returns or profitable development opportunities.


Poised for Growth

SLB’s Singapore pipeline property development projects include three residential sites – Serangoon Ville, Rio Casa and Lorong 24 Geylang – and two industrial property development projects – Khong Guan Industrial Building and 50 Lorong 21 Geylang.

Overseas, it owns a stake in the Gaobeidian mixed-use property development project in Hebei Province, the PRC (the “Gaobeidian Project”).

These sites are all expected to be launched for sale in 2H2018, amidst an improvement in the prices of non-landed residential properties and tapering of industrial supply in the coming years that is expected to stabilise industrial prices and rentals.


The Gaobeidian Project, a mixed-use property development project, is well-positioned to benefit from being located in a new special economic zone in the PRC, and ease of connectivity to Beijing by high-speed rail.

“Our ongoing property development projects, coupled with our pipeline property development projects to be launched in 2H2018, amount to a gross development value of approximately S$892 million.

"Development profits from these projects and the unsold completed properties held by the Group are estimated to be approximately S$136 million. Concurrently, we also look forward to recognise revenue from T-Space @ Tampines when it completes in FY2019,” said Mr Matthew Ong, CEO of SLB.

A total of 4.6 million square feet is expected for the Group’s pipeline property development projects, which are to be launched for sale in 2H2018. 

While it focuses on execution of these pipeline property development projects, SLB will continue to work with partners to seek and acquire well-located sites and buildings where it can utilise innovative designs and lifestyle themes to develop quality properties.

SLB will also explore suitable opportunities to undertake wholly-owned property development projects, and venture into hospitality developments.

Under Lian Beng Group, SLB’s management had conducted extensive studies and research on the PRC, UK, Australia and Vietnam markets, gathering knowledge on the supply and demand, and customers’ preferences in these target markets.

“Using this knowledge and network, we will source for opportunities to undertake property development projects in Asia-Pacific, Western Europe and North America regions – in countries such as the UK, Australia, Hong Kong, Japan, Korea, Vietnam, Malaysia, Cambodia and Myanmar – that offer healthy rates of return and aid in diversifying the Group’s activities and income stream,” concluded Mr Ong.

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