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Tee Land ditches en bloc purchase of East Coast condo

It had announced its plan to acquire Teck Guan Ville in a S$60m collective sale in late June

Singapore

TEE Land has decided against exercising its option to purchase Teck Guan Ville in what was to have been a S$60 million collective sale.

With this move following the government's announcement of fresh cooling measures, Tee Land will forfeit its 1 per cent deposit.

In a Singapore Exchange announcement on Thursday evening, Tee Land cited the "impact on market sentiments and purchasers' interest" following the government's announcement on July 5.

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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, 3,929 sq m plot located at 338 to 364 Upper East Coast Road.

It said then that the purchase would be financed by internal funds and bank borrowings, and that the transaction was not expected to have a material impact on the group's net tangible assets or earnings per share for the financial year ending May 31, 2019.

Last year, it 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.

It last closed on July 24 at S$0.187.