Hiap Hoe

[Tiggerbee]

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.

[greengiraffe]

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.

[opmi]

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

[Vseeker]

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

[kagemusha]

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

[Vseeker]

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.

[opmi]

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.

[specuvestor]

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

[kagemusha]

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.

[opmi]

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.