DBS enters agreement to sell property under Tee International

DBS has inked an agreement to sell 33 Changi North Crescent (33CNC), a property under embattled Tee International that the bank is conducting mortgagee sales for. (*see amendment note)

In a bourse filing on Tuesday (Jun 28), Tee disclosed that DBS has entered into a sale and purchase agreement with Applied Materials South East Asia for 33CNC, with the completion expected to take place on or around July 18.

The aggregate sale consideration for 33CNC was determined based on the fair value of the property of S$18 million. DBS will use the proceeds to satisfy outstanding amounts owed by Tee to the bank, as well as to other creditors who have a security over the sale proceeds of the property. It will also cover transaction expenses incurred by DBS.

In February, Tee received an order on Feb 17 to assist the Commercial Affairs Department with an investigation regarding an offence under the Securities and Futures Act.

Trading in shares of Tee has been suspended since mid-2021.

*Amendment note: A previous version of this article had stated that DBS had taken possession of 33CNC. This is incorrect. The bank was last year granted leave by the court to enforce its security over the property; DBS is conducting mortgagee sales without taking possession of it.