SINGAPORE - Property developer SingHaiyi Group has terminated an agreement for the sale of 34 condominium units for US$23.1 million (S$31.9 million) in a US commercial real estate project.

It said that its subsidiary Vietnam Town Property LLC terminated the deal on Wednesday (Nov 14) because the buyer failed to close the escrow for 31 of the 34 condo units on or before Nov 13 due to a lack of resources.

The developer added that it is entitled to about US$1.3 million from the termination of the purchase agreement.

This will be recognised as other income in its financial statements for the period ending Dec 31, 2018.

The two parties had agreed on Sept 12 on the sale and purchase of the 34 units in the Vietnam Town Phase II project in San Jose, California. This agreement was signed after a mutual agreement was reached to withdraw an original bulk deal between the two parties last December for the sale and purchase of 141 units or SingHaiyi's entire share of Phase II units in the real estate project.

SingHaiyi received a non-refundable deposit of US$7.5 million from the termination of last December's agreement. Of this amount, US$1.5 million was intended to be considered as a deposit for the 34 units.

SingHaiyi traded flat at 8.2 cents on Wednesday (Nov 14).