SINGAPORE (July 17): Mainboard-listed construction group Tiong Seng Holdings is acquiring two residential freehold sites along Jervois Road for total consideration of $21 million via a joint venture.

The sites are both located in prime district 10, and have a combined site area of approximately 13,415 sq ft with a gross plot ratio of 1.4.

In a Monday filing to the SGX, Tiong Seng says that its wholly-owned subsidiary, Yuan Ching Development, has entered into a joint venture with Arctic Sky Investment, a wholly-owned subsidiary of Ocean Sky International, an investment holding company with an interest in civil engineering, construction and related services.

Arctic Sky will subscribe to a 40% interest in Tiong Seng’s newly-incorporated subsidiary, TSky Development. 

Under the agreement, TSky Development has been granted an option to purchase for the acquisition of the two residential freehold sites. TSky (Jervois), a newly-incorporated company owned by TSky Development, has exercised the option and will undertake the development of the sites.

Tiong Seng says the acquisition is one that is in its ordinary course of business, which it believes will add on to its existing property development portfolio as well as further strengthen its capability building in its businesses of building construction, civil engineering and property development.

It does not expect the acquisition to have any material effect on its earnings per share (EPS) or net tangible assets (NTA) per share in the current financial year.

Shares of Tiong Seng closed 1.56% lower at 32 cents on Monday. 

This story first appeared on The Edge Singapore