You are on page 1of 4

SingHaiyi Executes Third U.S Project, Acquires San Francisco Waterfront Land for US$24.

4 Million To Develop High-End Seniors Community With Gross Development Value of US$600 Million

Singapore, 26 February 2014 SingHaiyi Group Ltd. (SingHaiyi or the Company) said today it would acquire a parcel of waterfront land along San Francisco Bay, California, for US$24.4 million to build a high-end community for seniors which will have a gross development value of approximately US$600 million. Located at the prestigious Candlestick Point prime retail, entertainment, and housing neighbourhood, the land is valued at US$35.0 million by Colliers International, approximately 43.0% above the acquisition price of US$24.4 million. Announcing its third property project in the United States in six months, SGX-listed SingHaiyi said it had exercised a right of first refusal on 25 February 2014 to acquire the 4.69 acres (about 204,300 square feet) land parcel located at 5 Thomas Mellon Circle from American Pacific International Capital Inc. (APIC). Mr. Neil Bush, SingHaiyis Non-Executive Chairman, said the project is the most significant to date secured by the Company, which obtained shareholder approval last June to embark on a strategic diversification to acquire undervalued U.S. properties. To fund this diversification, SingHaiyi raised S$226.0 million via a rights issue and share placement exercise.

The site includes an office building that is now approximately 50% occupied and yielding rental income of approximately US$1.0 million a year. SingHaiyi intends to demolish this building and develop a 528-unit Continuing Care Retirement Community (CCRC) for senior residents (5TM). The Company expects to recognize CCRC rental income from the financial year ending 31 March 2017 (FY2017). SingHaiyi expects to collect in excess of US$400 million of upfront refundable entrance fees and a monthly fee of US$3,500 to US$7,500 per unit. The consideration of US$24.4 million will be financed using the S$226.0 million raised from the rights issue and share placement. SingHaiyi will fund the construction by external borrowings (payable from the entrance fees) and equity contribution in the project, which will have a gross development value of approximately US$600 million. The 528 units will be divided into four segments Independent living to enable healthy seniors to enjoy life after retirement; Assisted living which combines residential housing and personalized support services; Memory support assisted living tailored to individuals with Alzheimers or other forms of dementia, and skilled nursing and rehabilitation beds with 24/7 round-the-clock medical support. The high-end, state-of-the-art CCRC offers attractive bayside living with fully equipped healthcare facilities supported by trained professionals. It also features recreational amenities such as a library, rooftop gardens, community rooms, guest suites, wellness and fitness centres, a pool and whirlpool. 5TM is the third U.S. project announced by SingHaiyi which acquired Tri-County Mall in September 2013 for US$45.0 million and Vietnam Town in November 2013 for US$33.1 million. After paying for the 5TM land parcel, SingHaiyi will have approximately S$99 million remaining from proceeds of the July 2013 rights issue. We are deeply committed to enhance shareholder value as outlined in our strategic diversification to acquire undervalued U.S. properties and have to date executed three projects, Mr. Bush said. There is a bourgeoning need for such senior residents communities in San Francisco, where the population is ageing. We are seeking approval for the CCRC development from city authorities, and they have been very supportive. SingHaiyis Group Managing Director, Mdm. Serena Chen, said, Apart from the 5TM project which will provide sizeable recurring income upon completion, we remain on the lookout for other projects which can offer distinct value.. Apart from its projects in the United States, SingHaiyi on 19 February 2014 tendered S$192.9 million less than 1% higher than the second-highest bid for the successful bid for the 175,237 square feet Anchorvale Crescent Executive Condominium site in Singapore.

###End of Release### Issued on behalf of the Group by WeR1 Consultants Pte Ltd: Media & Investor Contact Information WeR1 Consultants Pte Ltd 38A Circular Road Singapore 049394 Tel: (65) 6737 4844, Fax: (65) 6737 4944 Lai Kwok Kin, Laikkin@wer1.net and Amelia Lee, Amelia@wer1.net About SingHaiyi Group Ltd. SingHaiyi Group Ltd. (SingHaiyi or the Company) is a SGX-listed company specialising in property development and investment. In Singapore, it is currently developing five residential property development projects and has taken a 20%-equity interest in TripleOne Somerset. In the United States, it owns a shopping mall, and two development projects. In May 2013, SingHaiyi launched CosmoLoft (formerly known as Waldorf Mansions), a 17-storey tower comprising 56 units of freehold, designer lofts at 235 Balestier Road. Prior to this, SingHaiyi launched Pasir Ris One in May 2012, a Design, Build and Sell Scheme housing project in Pasir Ris, and is a joint developer of CityLife@Tampines, an Executive Condominium in Tampines, launched in December 2012 and sold out in four months. In March 2012, SingHaiyi sold out all 21 units of Charlton Residences (previously known as Foh Pin Mansion) in less than four months after it was launched. The Company was awarded the tender for the Anchorvale Crescent EC project in Sengkang on 19 February 2014. SingHaiyi is building its track record in the United States, while it maintains its property development portfolio in Singapore. To date, the Company owns a shopping mall, TriCounty Mall in Cincinnati, a commercial condominium development project, Vietnam Town in San Jose, and a senior residency community project by the San Francisco bay. This announcement has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, SAC Capital Private Limited, for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the Exchange). The Company's Sponsor has not independently verified the contents of this announcement.

This announcement has not been examined or approved by the Exchange and the Exchange assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr. Ong Hwee Li (Telephone: 65-6221 5590) at1 Robinson Road, #21-02 AIA Tower, Singapore 048542.