Buyer of SingHaiyi's Vietnam Town drops 141-unit bulk sale commitment

Transaction price has been reduced from $128.3m to $31.8m.

The buyer of SingHaiyi Group’s Vietnam Town Phase II units opted to buy 34 units instead of 141 units in what was previously agreed upon in December 2017 as a bulk sale. This means the buyer’s commitment has been slashed by 75% or 107 units. The transaction also cost $31.8m (US$23.1m) instead of $128.3m (US$95.3m).

Separately, the group has also sold 10 units and 14 units are pending completion of transactions at a price of more than US$630 psf. SingHaiyi group managing director Celine Tang commented, “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.”

To-date, SingHaiyi has received a non-refundable deposit of US$7.5m under the terms of the prior purchase agreement which has been withdrawn, of which US$1.5m will be considered as a deposit for the units sale. The remaining balance will be paid in two tranches on or before each close of escrow.

Vietnam Town is SingHaiyi’s commercial real estate venture in the US market. The development project in San Jose, California comprises nine blocks of commercial condominium units and a four-storey parking structure. The site was originally acquired for $45.58m (US$33.1m).