STEEL specialist TTJ Holdings has not been able to secure a renewal for a further term of the tenancy for its 5,300-worker dormitory at Terusan Lodge in Jurong.
The firm's application was declined by the Building and Construction Authority as the site of the dormitory will be affected by redevelopment works, TTJ said on Wednesday in a Singapore Exchange filing.
The Terusan dormitory, whose lease expires in January next year, is the sole workers dormitory operated by TTJ.
Its dormitory business contributed approximately S$19.1 million, or 20.3 per cent, to the firm's revenue in FY2015.
"Accordingly, the non-renewal of the Terusan dormitory is expected to have a material impact on the group's financial and operating results for the financial year ending July 31, 2017," TTJ said.
It added that it has been "successful in securing the tender for the management and operation" of an existing foreign workers dormitory situated at Upper Jurong Road.
The Jurong dormitory has a capacity of approximately 500 workers;and the tenancy will be for three years, commencing next month.
It is "not expected to have a material impact" on the firm's financial and operating results for FY2017, TTJ said.
"The board of directors wishes to advise shareholders and investors to exercise caution when dealing in the shares of the company," it added.