Projects include first time subway construction and Suntec City remodeling projects; Company also grabs hotel project in Mongolia
Samsung C&T became the exclusive contractor for UIC Investments Pte. Ltd’s UIC Redevelopment project with which it signed a contract worth $266 million, the company said on May 17. UIC Redevelopment project involves demolition of a 40-story office building that was completed in 1973 and the construction of a brand new commercial/residential complex at Singapore’s commercial hub, Marina Bay. The new building will have a total floor area of 133,902m2 and consist of a residential tower (53 stories), an office tower (25 stories), and a podium (7 stories) connecting the two towers.
Samsung C&T also became the exclusive contractor for the Suntec City Addition and Alteration Project, a $270 million project issued jointly by Singapore’s Suntec REITS, MCST, and Harmony Convention. With this project, Samsung C&T is charged with updating the Suntec Singapore International Convention & Exhibition Centre, a massive complex boasting a total floor area of 293,277m2 and consisting of multiple office towers (four 45-story towers and one 18-story tower), a shopping mall, and a convention center. The project is expected to start in June 2012 and last 28 months until September 2014.
In Mongolia, Samsung C&T has signed on to the Shangri-La Hotel Development Phase II Project in the Mongolian capital Ulan Bator. This project was issued by the Kerry Group, the parent company of the Hong Kong-based Shangri-La hotel chain, and Mongolia’s leading redeveloper MCS Holdings, and is valued at approximately $274 million. Samsung C&T will be participating as a joint venture partner with MCS Property, an MCS Holdings subsidiary. The new complex will have a total floor area of 127,475m2 and include a 34-story hotel/serviced residence building, a 24-story office building, and a 5-story retail and entertainment building. For Samsung C&T, this project will serve as a pilot project ahead of a full-scaled entry into the Mongolian construction market.
Samsung C&T recently became the first Korean constructor to enter Singapore’s MRT M&E market by signing a lump sum contract with Singapore’s Land Transportation Authority to construct mechanical and electrical packages for Stage 3 of Singapore MRT’s downtown line.
This achievement was spearheaded by Samsung C&T’s M&E Engineering Center and also happens to be the first project for the business unit that had been formed just earlier this year as an augmented, enterprise-wide version of the Mechanical & Electrical Division (Building Business Unit). Working as part of a joint venture with Singaporean firm Bintai, Samsung C&T is tasked with building mechanical and electrical packages that include a tunnel ventilation system, an environmental control system, an automated control system, and explosion-proof facilities within 57 months. The project is valued at US$129 million in total, giving Samsung C&T a US$77 million stake.
Samsung C&T is currently working on 10 separate projects in Singapore, including section 922 of DTL3, the Marina Costal Expressway, and Singapore LNG Terminal, and has further solidified its position as the uncontested leader in Singapore’s construction market with the addition of this MRT M&E contract. As an added bonus, this Singapore MRT contract is expected to pave the way for other M&E contracts in Singapore, Indonesia, and Malaysia.