SingHaiyi: Buyer failed to close on sale of 31 Vietnam Town condos in bulk deal

U.S. one-dollar and five-dollar currency notes; taken September 2018.U.S. one-dollar and five-dollar currency notes; taken September 2018.

SingHaiyi Group said on Wednesday that a buyer which agreed to bulk purchase 34 condominium units of Vietnam Town Phase II for US$23.1 million failed to close on 31 units due to a lack of resources.

The buyer, which was an unrelated third party, closed the escrow on three of the 34 units in September, but had failed to close the escrow in a timely manner on the remaining units by 13 November, it said in a filing to SGX on Wednesday.

The company had given the buyer an extra day due to a banking holiday on 12 November, and the deal was terminated on Wednesday, it said.

Under the deal, the US$1.5 million deposit was to be credited against the consideration for each individual unit on the close of escrow, which means SingHaiyi is entitled to around US$1.3 million from the termination of the agreement, the company said. The funds will be recognized as income for the financial period ending 31 December, it said.

For its fiscal second quarter ended 30 September, SingHaiyi reported last week that it had net profit of S$7.68 million, up 44 percent on-year, while revenue fell 76.8 percent on-year to S$24.19 million due to year-ago revenue recognition of the completed executive condominium project, the Vales.