Search

MORE NEWS
RETAIL | Staff Reporter, Singapore
Published: 09 Sep 13
523 views


SingHaiyi to deposit $29.25m for proposed 65% stake in US mall

Represents maiden venture in US property market.

SGX Catalist-listed SingHaiyi Group Limited (SingHaiyi) announced today that it will transfer US$29.25 million to American Pacific International Capital, Inc. (“APIC”), a corporation owned by the controlling shareholders of the Company as deposit for a proposed 65%-stake in a major shopping mall located in Cincinnati, Ohio, United States.

SGX-Catalist listed SingHaiyi said the deposit to APIC will be refunded without interest if the Company decides over the next three months that it will not proceed with the investment in Tri-County Mall, a two-storey mall with 1,261,500 gross square feet of retail space, of which 227,072 square feet is owned by Macy’s, a leading department store.

Located in Springdale, about 20 miles north of downtown Cincinnati, the mall features two other anchor tenants apart from Macy’s – Dillard’s and Sears. With a current occupancy rate of about 84% (excluding Macy’s), the mall has an estimated capitalisation rate of 11% per annum based on net operating income (before interest, depreciation and tax) over the purchase price of the mall.

SingHaiyi said it believes that with focused efforts, the mall’s occupancy rate, which was affected by previous receivership and foreclosure proceedings, will be improved. The mall was placed under receivership and foreclosure proceedings mainly due to the huge debts it has incurred.

SingHaiyi recently raised S$226.0 million from a rights issue and placement exercise as part of its strategy to expand its real estate investment activities beyond Singapore to include the United States. As stated in a Circular to Shareholders dated 13 June 2013, APIC has given a letter of undertaking to offer SingHaiyi the first right of refusal for any real estate investment in the United States that it is considering. APIC will in such instances act as principal and not as agent, and may co-invest in the projects with SingHaiyi.

At a court-ordered auction on 19 July 2013 in Hamilton County, Ohio, APIC was successful in its US$45 million bid for the entire interest in Tri-County Mall free of debts and encumbrances and has paid in full to the Hamilton County Sheriff subsequently after the auction.

SingHaiyi has indicated its intention to acquire a 65%-stake in the mall and has three months to conduct due diligence. However, SingHaiyi has the right to vary the percentage of its participation to a minimum 51% stake, or a maximum 100% stake. If it decides not to go ahead, APIC will refund the deposit by early December 2013.

If concluded, the Tri-County Mall transaction will mark SingHaiyi’s maiden venture into the U.S. property market, extending its “investment banking approach” beyond Singapore, as outlined to shareholders at an extraordinary general meeting convened on 28 June 2013.

SingHaiyi’s Non-Executive Chairman, Mr. Neil Bush, said, “Having secured shareholders’ approval to execute our strategy to expand our real estate investment activities beyond Singapore, we have wasted little time in seeking out exceptional deals which can enhance shareholder value.”

“The arrangement with APIC allows SingHaiyi to move rapidly and seize real estate investment opportunities which may arise. If concluded, this will mark our first transaction under the diversification strategy. We are confident that the U.S. real estate market is still under-estimated with the broader economy at the beginning of a recovery phase.”

“The US$45 million successful bid price of Tri-County Mall is at a steep discount to the net book value of US$194 million based on the management accounts as at June 2013. If the transaction goes through, the mall is immediately revenue generating. We will try to bring more tenants and talks are underway for a few potential tenants,” Mr Bush said.

SingHaiyi with its partners are currently developing four residential projects in Singapore with a combined estimated gross development value of approximately S$900 million.



Sign up for our newsletter

 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.

Tags: SingHaiyi Group, more news, retail, Tri-County Mall, Ohio, US property market, maiden venture

LATEST RETAIL JOBS »
  • No jobs posted on this category.
PRINT ISSUE »

Subscribe Now
Survival of the fittest in Singapore’s franchising scene

21 views

Singapore’s IPO market falters as Hong Kong’s soars

9 views

Singapore’s “mid-life crisis”

49 views

MOST READ EXCLUSIVES

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

Bosch’s cutting-edge regional HQ is one of the greenest buildings you’ll find in Singapore

It boasts an automated sun-shading system.

by MARIANNE ESTIOCO
7 Jul 2015 | 14955 views
 

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

Husband and wife duo ditch plum banking jobs to shake up Singapore’s HR scene

This small start-up has global dreams.

by MARIANNE ESTIOCO
8 Jul 2015 | 9674 views

Cocoa Colony to open 12 more outlets in Singapore by end-2015

Cocoa Colony to open 12 more outlets in Singapore by end-2015

The cafe chain seeks to target the masses.

by KRISANA GALLEZO-ESTAURA
21 Jul 2015 | 8917 views
 

10 smart ways to spend your GST Vouchers

10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

by KRISANA GALLEZO-ESTAURA
8 Jul 2015 | 8585 views

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

TAIGER’s office bids goodbye to claustrophobia-inducing cubicles

Walls and windows function as a big canvas.

by MARIANNE ESTIOCO
15 Jul 2015 | 4728 views
 

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Get bitten by the travel bug in Skyscanner’s quirky Asia-Pacific headquarters

Meeting rooms are named after Asian tourist spots.

by MARIANNE ESTIOCO
5 Jun 2015 | 3365 views

Hootsuite boosts its APAC team opening a new office in Singapore

Hootsuite boosts its APAC team opening a new office in Singapore

Its VP talks about the importance of the company’s culture in line with opening the new space.

by LEE ANNE BABIERRA
18 Jun 2015 | 3331 views
 

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Bye bye blurry video calls: Here’s a WebRTC startup that offers close to HD video quality using any device

Find out how they are building the next generation of web communications.

by LEE ANNE BABIERRA
2 Jun 2015 | 2695 views

Singapore’s first dedicated F&B development to open in East Coast Road

Singapore’s first dedicated F&B development to open in East Coast Road

Katong Square plans to open at the end of the year.

by STAFF REPORTER
31 Jul 2015 | 2608 views
 

Experience a different form of Thai casual dining at Gin Khao

Experience a different form of Thai casual dining at Gin Khao

The man behind the Jus Delish Group opens its flagship outlet at East Coast Parkway.

by STAFF REPORTER
19 Aug 2015 | 2522 views

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

CtrlShift’s new office exudes a ‘wow-effect’ without being too grand

Paying attention to small details paid off.

by LEE ANNE BABIERRA
29 Jul 2015 | 2265 views
 

Former college dropout built his own company and made $2million in just 2 years

Former college dropout built his own company and made $2million in just 2 years

He developed a hiring software for jobless women and youth.

by KRISANA GALLEZO-ESTAURA
20 Aug 2015 | 1797 views

Grant Thornton aims to grow staff to 200-300 people in Singapore

Grant Thornton aims to grow staff to 200-300 people in Singapore

Here’s what it will do differently compared to the Big Four.

by KRISANA GALLEZO-ESTAURA
29 Jul 2015 | 1605 views
 

This handy app lets you book nearly any service under the sun

This handy app lets you book nearly any service under the sun

Find technicians, babysitters and more with Page Advisor.

by MARIANNE ESTIOCO
8 Jun 2015 | 1588 views

Could this site be your new financial buddy?

Could this site be your new financial buddy?

It allows users to look for financial services based on their pre-calculated profile.

by LEE ANNE BABIERRA
30 Jul 2015 | 1516 views
 

This app is out to prove that Singapore is anything but boring

This app is out to prove that Singapore is anything but boring

And Sugar helps SMEs in the process too.

by MARIANNE ESTIOCO
2 Jun 2015 | 1475 views

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

The wait is over: American Eagle Outfitters opens flagship store in VivoCity

Shop until you drop with its wide selection of denim washed jeans.

by STAFF REPORTER
19 Aug 2015 | 1475 views
 

PwC Singapore launches its first Investment Fund Centre in Asia

PwC Singapore launches its first Investment Fund Centre in Asia

Expanding its presence in the asset management sector across Asian region.

by LEE ANNE BABIERRA
29 Jun 2015 | 1381 views

Hey, boss: This startup wants to be your all-around sidekick

Hey, boss: This startup wants to be your all-around sidekick

Alpha7 wants SMEs to join the Cloud.

by STAFF REPORTER
16 Jun 2015 | 1362 views
 

How do you like getting cash rebates when shopping online?

How do you like getting cash rebates when shopping online?

ShopBack introduces this concept in Southeast Asia.

by STAFF REPORTER
21 Jul 2015 | 1346 views

Get your head in the game: Testing challenges await the Internet of Things

Get your head in the game: Testing challenges await the Internet of Things

Industry experts share their concerns over security and testing standards.

by LEE ANNE BABIERRA
4 Jun 2015 | 1255 views
 

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

Out with the old, in with the new: Arcc Offices refurbished its first serviced office in Singapore

It is designed with break out spaces that are ideal for a collaborative working environment.

by LEE ANNE BABIERRA
17 Aug 2015 | 1247 views

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Leave your valuables unattended: This on-demand cleaning service offers $1m liability insurance

Book a reliable cleaner in seconds with Helpling.

by MARIANNE ESTIOCO
22 Jun 2015 | 1069 views
 

WeInvest.net simplifies exploration of available investment opportunities

WeInvest.net simplifies exploration of available investment opportunities

It claims to be the world’s first platform allowing investors to take a peek into the restricted funds.

by LEE ANNE BABIERRA
7 Aug 2015 | 1065 views

Almac Group boosts APAC foothold, unveils first clinical packaging facility

Almac Group boosts APAC foothold, unveils first clinical packaging facility

It’s the first to complete the Health Sciences Authority inspection.

by LEE ANNE BABIERRA
5 Aug 2015 | 1033 views
 

Why you should never miss premium freebies from Grabz

Why you should never miss premium freebies from Grabz

This app also helps SMEs get noticed in the market.

by KRISANA GALLEZO-ESTAURA
21 Aug 2015 | 716 views

Asian corporates face tough balancing act as sustainability issues mount

Asian corporates face tough balancing act as sustainability issues mount

Discover the changing face of Asian CSR.

by MARIANNE ESTIOCO
1 Jul 2015 | 663 views
 
close Don't Show Again

STAY INFORMED! Get our free weekly newsletter