SINGAPORE - Singapore-listed Tiong Seng Holdings and Ocean Sky International have come together to buy Sloane Court Hotel and a small adjoining plot for S$80.5 million for redevelopment, the companies announced in pre-market exchange filings on Monday (Aug 28)
The price excludes development charges for intensifying usage of the land.
Tiong Seng chief operating officer Lim Geok Hwee told The Straits Times on Monday that the joint venture company plans to redevelop the site into a 12-storey, 80 unit condominium, with each unit averaging 700 square feet.
"To build up to the maximum allowable gross floor area, we will have to pay a development charge for intensifying use of the land," Mr Lim said.
This will be the second joint venture project Tiong Seng has entered into with Ocean Sky. The first acquisition they made together was for two freehold sites on Jervois Road for S$21 million, which they plan to develop into a 21 apartment project.
"We expect the residential outlook to be good in the next two years. The tenders and en bloc sales that have happened in the last year have been done at high prices, so that will likely translate to higher home selling prices next year," Mr Lim said.
Tiong Seng, through its wholly owned subsidiary Yuan Ching Development Pte Ltd, has a 60 per cent interest in the joint venture TSky Development, while Ocean Sky holds the remaining 40 per cent stake through its unit Arctic Sky Investment.
TSky Development entered into a deal last Friday to buy Sloane Court Hotel at Balmoral Road and lot 99899P of town sub division 26 for S$80.5 million.
The proposed acquisition is conditional upon the approval of the shareholders of the vendors of the sites.
Located in prime district 10, the hotel with the small adjoining plot has a combined site area of approximately 3,617.9 square metres (38,943 square feet) and is zoned "Residential" with a gross plot ratio of 1.6.
TSky Development will set up a project company to undertake the development of the sites.