Hiap Hoe

Browsed through Superbowl's 2012 AR and discovered that the lease for the Kovan site has a 30 year lease from 1984. So that means the lease is up for renewal. My guess is that Hiap Hoe has decided not to extend renew the lease.

http://www.businesstimes.com.sg/premium/...s-20141001

PUBLISHED OCTOBER 01, 2014
Hiap Hoe to sell 39 shop units
Most of them are in Parklane; JLL has launched expression of interest exercise
BYANITA GABRIEL
anitag@sph.com.sg @AnitaGabrielBT

MAINBOARD-LISTED Hiap Hoe plans to sell 39 shop units, most of which are strata-titled units in Parklane Shopping Mall, in line with its plan to divest non-core assets even as it capitalises on healthy investor demand for retail space.
The property developer has hired consultancy firm JLL, which on Tuesday launched an expression-of-interest (EOI) exercise to sell the shops.
Of the 39 units, 33 - all in the basement of Parklane Shopping Mall in Selegie Road - are being offered in a single portfolio to a single buyer, said JLL.
Hiap Hoe is expecting offers of around S$55.6 million for this single portfolio, which takes up a combined strata floor area of 25,317 sq ft - more than 94 per cent of the total strata floor area in the basement.

^^ problem with the property is that GPR already max out. So new buyer can do major AA only.

recap: Back on 22Sep2014,
it was listed HiapHoe that buyout the unsold ppty units from its two subsidiaries,
it paid $35m for five penthouse at Skyline360 and $7m for two units of Signature @ Lewis

this time, its Grandpa coming in to fish !!!
Listed HiapHoe to sell Treasures @Balmoral (en bloc) to its parent holding company Hiap Hoe Holdings Pte Ltd ("HHH")

HHH will buyout entire "Treasures On Balmoral" project for $185m (or at $1789 psf) from listed HiapHoe, the carrying cost (Devt Ppty) as at 31-Oct2014 was $188.327m

As "QC Extension penalty" already kicks for this project in wef 02-Nov2014,
HiapHoe (the listed one) will be paying $5.52m for a 6-months QC Extension (from 02-Nov2014) inorder to have another 6-mths to sell all the unsold units in this project.

So Grandpa will still have to pay 3%+15% stamp duty/ABSD (on the $185m pricetag presumably),
while sonny (lsited HiapHo) will be paying the $5.52m penalties for a 6-mths "QC Extension" inorder to complete the sale.

....If the TEO family had make up their minds a little faster !! ,
at least they could have save themselves this $5.52m QC extension penalty !!! (they essentially own 70% of listed HiapHoe)


Announcement - Proposed Disposal of Hiap Hoe SuperBowl JV Pte Ltd.pdf

Does it mean that now after buying over the entire condo, they can now lease them out?

(09-12-2014, 12:56 PM)kagemusha Wrote: Does it mean that now after buying over the entire condo, they can now lease them out?

Simply answer is YES.
note: the BUYER here is NOT listed HiapHoe itself.
the BUYER is a non-listed company (the TEO family holding vehicle).

it fullfilled the condition that developers must complete and sell off all units in each "Residential Devt Property project" within a certain stipulated period of time (5~7 yrs) as prescribed under the "whatever act or regulation"....hahaha (I'm not a legal or real estate professional).

Beyond this deadline, they will have to pay QC Extension penalties on landcost (of the proportion of unsold project) at the rate of 8% for 1st year extension, 16% for 2nd and 24% for the 3rd and any subsequent year of extension = until the project is 100% soldoff.

(10-12-2014, 09:21 AM)Vseeker Wrote:

(09-12-2014, 12:56 PM)kagemusha Wrote: Does it mean that now after buying over the entire condo, they can now lease them out?

Simply answer is YES.
note: the BUYER here is NOT listed HiapHoe itself.
the BUYER is a non-listed company (the TEO family holding vehicle).

it fullfilled the condition that developers must complete and sell off all units in each "Residential Devt Property project" within a certain stipulated period of time (5~7 yrs) as prescribed under the "whatever act or regulation"....hahaha (I'm not a legal or real estate professional).

Beyond this deadline, they will have to pay QC Extension penalties on landcost (of the proportion of unsold project) at the rate of 8% for 1st year extension, 16% for 2nd and 24% for the 3rd and any subsequent year of extension = until the project is 100% soldoff.

Beyond this deadline, they will have to pay QC Extension penalties on landcost (of the proportion of unsold project) at the rate of 8% for 1st year extension, 16% for 2nd and 24% for the 3rd and any subsequent year of extension = until the project is 100% soldoff.

Just to reiterate, public listed developers and foreigners has no holding powers for L99 or FH land acquired AFTER this Residential Property Act amendment. I guess developers will capitulate after 2nd year extension. Doubt any one will go into 3rd extension. Cheaper to become wholly SG pte ltd.

The downside is of course it is no longer developer primary market sale and more a secondary market sale, so sale price may adjust accordingly, but they know the maths

well, I guess as long as you are loaded, you can skirt some rulings.
If after a few years still no buyer, will make HH buy back from them and "re-develop" again.
Lol, you will never know.

(15-12-2014, 06:11 PM)kagemusha Wrote: well, I guess as long as you are loaded, you can skirt some rulings.
If after a few years still no buyer, will make HH buy back from them and "re-develop" again.
Lol, you will never know.

Then it is a IPT and major shareholders cannot vote in that egm.