SingHaiyi calls off US$23.1m condo sales in US commercial project

PROPERTY developer SingHaiyi Group has terminated an agreement for the sale of 34 condominium units at US$23.1 million of a US commercial real estate project.

It said that its subsidiary Vietnam Town Property LLC had terminated the deal dated Nov 14 because the buyer failed to close the escrow for 31 of the 34 condominium units on or before Nov 13 due to a lack of resources.

The property developer added that it is entitled to about US$1.3 million from the termination of the purchase agreement.

This will be recognised as other income in its financial statements for the period ending Dec 31, 2018.

The two parties had agreed on Sept 12 on the sale and purchase of the 34 condominium units of Vietnam Town Phase II project in San Jose, California. This agreement was signed after a mutual agreement was reached to withdraw an original bulk deal agreed between the two parties last December for the sale and purchase of 141 units or SingHaiyi's entire share of Phase II units in the real estate project.

SingHaiyi had received a non-refundable deposit of US$7.5 million from the termination of last December's agreement. Of this amount, US$1.5 million was intended to be considered as a deposit for the 34 units.

SingHaiyi traded flat at 8.2 Singapore cents as at 2.14pm on Nov 14.