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Hong Lai Huat calls off S$15.7m sale of hotel in Cambodia project
HONG Lai Huat's S$15.7 million sale of a hotel at its D'Seaview project in Sihanoukville, Cambodia has been terminated after the buyer did not make full payment.
The mainboard-listed property developer said in a Singapore Exchange announcement that it received partial payment from the buyer as at Tuesday for the 98-room, 10-storey boutique hotel.
Hong Lai Huat sought legal advice from its Cambodian counsels and terminated the sale and purchase agreement.
"The Company is currently reviewing the overall impact of the termination on the group, and will update shareholders on other material developments at the appropriate juncture," it said.
D'Seaview is Hong Lai Huat's first major Cambodia project and the freehold project comprises 737 residential units and 67 commercial units.
Hong Lai Huat told The Business Times on Tuesday that the US$22 million sale of an adjacent piece of land spanning 22,064 sq m is "well in progress". The announcement of the sale in late August said the company would complete this sale in two-and-a-half months.
A company representative said the construction of D'Seaview is expected to be completed in 2019 and not affected by the termination of the hotel's sale.
A press statement in March announcing the hotel sale had said the development of the commercial and residential segments was expected to be completed in the second quarter of 2018 and the first half of 2019 respectively.
The developer put its Singapore operations on hold 10 years ago and expanded into Cambodia for growth in property and agriculture.
Hong Lai Huat closed at S$0.225, half a Singapore cent or 2.3 per cent higher before the announcement.