TEE Land had intended to redevelop the site into a new residential project.
Tee Land has decided not to exercise its option to purchase Teck Guan Ville condo, which would have set the company back $60 million.
In an SGX filing, the company explained that it had arrived at the decision after taking into account the new property cooling measures’ impact on market sentiments and purchasers’ interest.
More: Developers’ En Bloc Appetite Diminishing: RHB
With this, the company will forfeit its one percent deposit on the freehold condo site.
On 28 June, Tee Land announced that it had entered into an option-to-purchase agreement to acquire the 3,928.8 sq m site at 338 to 364 Upper East Coast Road for $60 million.
The company had revealed that it would finance the acquisition by internal funds and bank borrowings, as well as plans to build a residential development on the site.
Tee Land “has decided to adopt a more prudent and circumspect approach towards new projects in the meantime, pending clarity on the industry outlook”, it said.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
