TCP Asia not to collaborate with Sitra in hotel project

TIMOR Capital Partners Asia has decided not to collaborate in the development of a hotel in Timor Leste with Catalist-listed Sitra Holdings (International)'s subsidiary, E-Timberhub, and Sitra's investee company, Sitra Dove Construction & Logistics.

On Tuesday, Sitra announced it has received a letter of intent from TCP, informing that TCP has dissolved its intention to collaborate with Sitra Holdings on the project, ZEESM Hotel OeCusse.

This follows Sitra's acceptance of TCP's binding letter of intent in December 2014. Under the letter, TCP had proposed to engage Sitra Dove to carry out building works and back-of-home and fitting-out works. TCP had also proposed to engage E-Timberhub to plan offshore logistical arrangements and for its advice.

The project has an estimated development value of about US$17.5 million, comprising US$12.5 million for building works and US$5 million for back-of-home and fitting-out works.

It is undertaken by TCP for the ZEESM (Special Zones of Social Market Economy) Authority of Timor Leste.

"The company will evaluate its rights and make further announcements as and when there are material developments in the matter," Sitra said in a statement on Tuesday.

Before news of the announcement on Tuesday, Sitra's counter had closed trading at S$0.018, down 5.26 per cent from the previous trading day.