Tiong Seng unit exercises right to rescind option to buy Jervois Road sites

TIONG Seng Holdings Limited said that its subsidiary TSky (Jervois) on Wednesday exercised its right to rescind the option to buy two freehold sites in Jervois Road.

This comes after the necessary redevelopment approval for the sites was not granted to TSky Jervois "due to restriction of redevelopment plans for the remaining left-behind plots", Tiong Seng said in a regulatory filing with the Singapore Exchange.

Located in prime district 10, the two sites have a combined site area of about 13,415 sq ft and are zoned "residential" with a gross plot ratio of 1.4 under the Urban Redevelopment Authority's Master Plan 2014.

On July 17, Tiong Seng had announced that TSky (Jervois), its 60:40 joint venture company with Ocean Sky International, had exercised the option to buy the sites for S$21 million and would undertake the development of the plots.

In its statement on Wednesday, Tiong Seng said that the termination is not expected to have any material impact on the earnings per share and net tangible assets per share of the group for the current financial year ending Dec 31, 2017.