SINGAPORE – Property developer SingHaiyi Group has terminated the agreement to sell 34 condominium units worth US $ 23.1 million from US commercial real estate projects.
It is said that its subsidiary, Vietnam Town Property LLC has terminated the agreement on November 14 because buyers failed to close escrow for 31 of the 34 condominium units on or before November 13 due to lack of resources.
Property developers added that they were entitled to US $ 1.3 million from the termination of the purchase agreement.
This will be recognized as other income in the financial statements for the period ended 31 December 2018.
Both parties agreed on September 12 to sell and purchase 34 Second City Vietnam condominium project units in San Jose, California. This agreement was signed after a joint agreement was reached to revoke the original bulk agreement agreed between the two parties in December for the sale and purchase of 141 units or all parts of SingHaiyi from Phase II units in real estate projects.
SingHaiyi has received a non-refundable deposit of US $ 7.5 million from the termination of the agreement last December. Of this amount, US $ 1.5 million is intended to be considered a deposit for 34 units.
SingHaiyi traded flat at 8.2 cents on November 12.