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Buyer in SingHaiyi's US commercial project cuts commitment by three-quarters
PROPERTY developer SingHaiyi Group said on Wednesday that a buyer who had committed to buy 141 units of a US commercial real estate project is now buying just 34 of those units under a new agreement.
The buyer, who was not named, had previously agreed in December 2017 to buy SingHaiyi's entire share of Phase II units in the Vietnam Town project in San Jose, California, for US$95.3 million (S$128.3 million). That deal is now withdrawn. Instead, the buyer will now acquire just 34 units for US$23.1 million.
The previous bulk deal was terminated under a mutual agreement, SingHaiyi said. Completion of the new one is expected by Nov 12, 2018.
SingHaiyi has separately sold a further 10 units of the newly available Phase II inventory, and has another 14 pending completion. The total consideration for these 24 units was not disclosed, but SingHaiyi said they were sold at an average of US$630 per square foot.
Under the terminated agreement, SingHaiyi received a non-refundable deposit of US$7.5 million. The parties will consider US$1.5 million of that amount as a deposit for the 34 units, and will credit the remaining for the balance of the outstanding consideration.
SingHaiyi said that the price per square foot for Phase II units represents an improvement over the average for Phase I units, and is an indicator of a general increase in selling prices in the area.
Said SingHaiyi group managing director Celine Tang: “We are seeing interest from potential buyers and we believe that this is an excellent window of opportunity for SingHaiyi to capitalise on the current buoyant property market in San Jose and enjoy potential selling price upside.”
SingHaiyi’s stake in the Vietnam Town project consists of 192 units, of which 51 units have been completed and sold in Phase I.
SingHaiyi shares closed at S$0.091 on Tuesday.