TSky Development said it had entered into a deal to buy Sloane Court Hotel at 17 Balmoral Road and lot 99899P of town sub division 26 for S$80.5 million.
Ocean Sky International, which holds a 40 percent stake in TSky Development through the former's subsidiary Arctic Sky Investment, said the proposed acquisition will be funded by the group's internal resources and bank facilities .
Tiong Seng Holdings, through its wholly owned subsidiary Yuan Ching Development Pte Ltd, holds the other 60 percent interest in TSky.
Sloane Court Hotel is located in prime district 10, with a combined site area of about 3,617.9 square metres and is zoned "Residential" with a gross plot ratio of 1.6.
The agreement is conditional upon the approval of the shareholders of the vendors of the sites.
The proposed acquisition is not expected to have any material impact on the earnings per share and net tangible assets per share of the group, the company said in an exchange filing.
Shares in Tiong Seng Holdings fell 3.3 percent to S$0.295 while Ocean Sky International declined 6.2 percent to S$0.076 on the Singapore Exchange.