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SingHaiyi enters into agreement for bulk sale of its Vietnam Town Phase II units
MAINBOARD-LISTED SingHaiyi Group said on Tuesday that it has entered into a purchase and sale agreement, and initial escrow instructions for the bulk sale of all of its Vietnam Town Phase II units for a total cash consideration of US$95.3 million.
The sale, which was made to an unrelated third party, will see a non-refundable deposit of US$7.5 million paid out in five tranches and held in escrow on conclusion of the agreement, SingHaiyi said in a filing with the Singapore Exchange.
The US$87.8 million balance will be paid out on or before each close of escrow, the property group added.
Vietnam Town is a commercial condominium development project in San Jose, California. It comprises nine blocks of commercial condominium units and a four-storey parking structure.
The group's stake in the project consists of 192 units, of which 51 units have been successfully completed and sold in Phase I.
SingHaiyi's group managing director, Celine Tang, said: "This bulk sale is testament to the immense potential of Vietnam Town as one of the pre-eminent commercial projects in San Jose, California."
"Vietnam Town Phase II is well on track for completion and we expect to begin delivery of the first block in the second quarter of 2018."
In the past three months, SingHaiyi acquired Sun Rosier condominium in September for S$271 million and was awarded the tender for How Sun Park in November for S$81.1 million.
SingHaiyi shares closed S$0.003 or 2.5 per cent higher at S$0.124 on Tuesday.