SingHaiyi plans to sell City Suites project to main contractor for S$16.38m

SINGHAIYI Group said on Wednesday that it plans to sell Corporate Residence Pte Ltd (CRPL), a developer for City Suites, a private freehold residential project along Balestier Road, for S$16.38 million.

The 56-unit development will be sold to Ang Cheng Guan Construction Pte Ltd. SingHaiyi said sale progress has been slow, at about 10 per cent, since the project was launched in May 2013.

"In view of the possible levy as a result of the qualifying certificate (QC) on unsold units, it is in the interest of the company to sell CRPL," SingHaiyi said.

It added that Ang Cheng Guan Construction is the main contractor of City Suites and has expressed an interest to buy CRPL. The remaining 10 per cent of shares in CRPL are held by Corporate Space Pte Ltd, whose consent on the sale is being sought.

SingHaiyi plans to use the sale proceeds as part of its working capital. The sale is not expected to have any material effect on the group's consolidated net tangible assets per share or the consolidated earnings per share for the financial year ended March 31, 2015.