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Teck Guan Ville collective sale with Tee Land called off due to cooling measures

CITING the latest round of cooling measures, Tee Land has decided not to exercise its option to purchase Teck Guan Ville in what was originally a S$60 million collective sale.

Tee Land will forfeit its 1 per cent deposit. In its Singapore Exchange announcement on Thursday evening, Tee Land cited the "impact on market sentiment and purchasers' interest" following the government's announcement on July 5.

The company "has decided to adopt a more prudent and circumspect approach towards new projects in the meantime, pending clarity on the industry outlook", it added.

Tee Land had announced on June 28 that it had entered an option-to-purchase agreement to acquire the freehold, 3,928.8 sq m plot located at 338 to 364 Upper East Coast Road.

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In its June announcement, it had said the purchase was supposed to have been financed by internal funds and bank borrowings, and was not expected to have any material impact on the group's net tangible assets or earnings per share for the financial year ending May 31, 2019.

Last year, Tee Land scooped up the freehold Casa Contendere at 35 Gilstead Road through a collective sale for S$72 million and a strata development comprising six townhouses along Seraya Crescent off Upper Thomson Road through a collective sale at S$25.74 million.

The counter last closed on July 24 at S$0.187.