Hao Mart proposes settlement to Taste Orchard tenants, asks for details of unamortised unit fit-out costs
They will also have their security deposits refunded, and have been asked to provide estimated reinstatement amounts, with waivers subject to assessment
[SINGAPORE] Supermarket chain Hao Mart has proposed a settlement agreement to the tenants of shopping mall Taste Orchard, following the early termination of its 7.5-year master tenancy lease by landlord OG, The Business Times has learnt.
As the master tenant, Hao Mart must vacate and hand over the premises – located at 160 Orchard Road – to OG by Dec 31, 2025. Sub-tenants at Taste Orchard are required to vacate and return their units by the same deadline.
Avista Advisory Partners was earlier appointed by Hao Mart to assist in discussions with tenants relating to the lease termination.
In an e-mail sent by Avista to tenants on Saturday (Oct 18) and seen by BT, the company said Hao Mart had proposed to “formalise the termination” of the tenancy through a settlement agreement to be entered into with each tenant.
A copy of the settlement agreement was appended to the e-mail.
Tenants should inform Avista if they wish to request for an extension to vacate their units; the extended deadline must be no later than Mar 31, 2026.
Avista said in the e-mail that Hao Mart would “try, on a best-effort basis and subject to confirmation by OG”, to grant this extension.
It added that tenants will have their security deposits refunded within a period of two months after Dec 31, 2025 or the extended period of Mar 31, 2026. This is per the relevant clause in their tenancy agreements.
Some restitution
Hao Mart is also requesting tenants to provide details and supporting documents of their unamortised capital expenditure incurred for the fit-out of their units.
This represents costs that have been “rendered unrecoverable or wasted” due to the termination of the tenancy agreement, Avista said.
The unamortised amount “should be calculated on a pro rata basis corresponding to the unexpired time period of the tenancy agreement”, based on the actual date the agreement was terminated.
However, Avista added that tenants are required “to mitigate such amounts by making genuine efforts to salvage, sell or reuse the items to the extent practicable”.
BT reported in September that OG had ended Hao Mart’s 7.5-year lease – less than two years after the food-focused mall opened. This followed an earlier report on poor business and low footfall experienced by several tenants.
Some tenants still had up to two years on their leases when the news broke.
Avista said in its e-mail that Hao Mart has asked tenants to provide an estimate of the time they will need to reinstate their units to “the same condition and state” as at the start of their tenancy, as well as the costs required for such reinstatement.
Hao Mart will “discuss internally and evaluate this information to assess if such reinstatement could be waived” and will inform tenants accordingly, said Avista.
But it stressed that Hao Mart makes “no assurance or promise” regarding such waivers “until such intimation” is given to tenants.
“No compensation” for revenue loss
One Taste Orchard tenant who spoke to BT on the condition of anonymity said Hao Mart’s settlement offer was unsatisfactory, noting that his revenue has “dropped drastically” over the past month.
“Our business has been affected, but there’s no compensation for that,” he said, adding that there was also no guarantee tenants would be granted an extension to vacate their units.
When BT visited Taste Orchard on Sunday, anchor tenant and supermarket Eccellente by Hao Mart – which previously occupied three levels of the mall – appeared to be in the midst of vacating Level 2.
The remaining shelves and freezers on Level 2 had been entirely emptied of stock, with pallets wrapped up and stacked. Other furnishings had been dismantled, while trolleys were clustered in a corner.
Another tenant said his sales have dipped by 20 to 30 per cent since fast food chain BHC Chicken on Level 1 ceased operations on Sep 14.
“With fewer shops, of course there will be fewer crowds,” he said.
While he described Hao Mart’s proposal as “better than nothing”, he expressed frustration over not being able to offset his remaining three months of rent with his security deposit, which is being withheld.
“I have to spend a lot of money to relocate my shop, and would prefer to get my money back earlier.”
