Tiong Seng Holdings’s subsidiary, TSky (Jervois), has exercised its right to rescind the option to purchase two freehold sites in Jervois Road.
This comes as the necessary redevelopment approval for the sites has not been given by the relevant authority “due to restriction of redevelopment plans for the remaining left-behind plots”, explained Tiong Seng in an SGX filing.
Zoned “residential”, the sites are located in prime district 10, featuring a combined area of around 1,246.3 sq m (13,415 sq ft) and a gross plot ratio of 1.4.
In a July announcement, Tiong Seng revealed that TSky (Jervois) had exercised the option to purchase the sites for $21 million and would also undertake their development.
TSky (Jervois) is Tiong Seng’s 60:40 joint venture company with Arctic Sky Investment Pte Ltd, which is a wholly owned subsidiary of Ocean Sky International Limited.
Tiong Seng does not expect the termination to materially affect the group’s earnings per share and net tangible assets per share for the current financial year ending 31 December 2017.
This article was edited by Keshia Faculin.