S’pore-listed property developer Hatten Land plans to restart work on Melaka project after years of delays
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SINGAPORE – Singapore-listed property developer Hatten Land plans to resume work by mid-2023 on a residential project in Melaka that was slated for completion in 2020.
The long-delayed project is at the centre of complaints by buyers and investors, who organised a protest at one of Hatten Land’s developments in March.
The protesters were made up of a group of at least 80 people, including Singaporeans, who had bought units in several Hatten Land developments.
They held the protest on March 18 at ElementX Mall in Melaka – another Hatten Land project.
Hatten Land’s delayed projects include the Harbour City development
So far, only 19 floors of the building have been completed, with at least 10 more to go.
Speaking to The Straits Times, several Singaporean buyers said they were unhappy with the long delay, and with being kept in the dark about the completion date while having to continue paying for their investments for about seven years since the project began sales.
It is unclear exactly how many Singaporean buyers have parted with cash for the Hatten Land project.
One Singaporean investor, Mr Francis Ng, 51, said he had almost finished paying the estimated RM500,000 (S$150,800) for a unit on the 25th storey of Harbour City.
Mr Ng, who owns the popular eatery House of Seafood, said: “I bought this property because it’s developed by a Singapore-listed company.”
Hatten Land was listed on the Catalist exchange in 2017. It functions as the property development arm of Hatten Group, and was co-founded by siblings Colin and Edwin Tan. Mr Colin Tan is the firm’s chairman while Mr Edwin Tan is the deputy managing director.
Hatten Land projects, which are largely based in Melaka, include integrated residential, hotel and commercial developments.
The Harbour City project is undertaken by the developer’s wholly owned Malaysian subsidiary, Gold Mart, and was to be built in two phases.
The first phase consists of Harbour City Mall and one hotel block, due for completion in 2019, while the remaining two hotel blocks fall under its second phase, which was expected to be completed in 2020.
Responding to queries, a Hatten Land spokesman said buyers were required to pay up to 90 per cent of the cost for the construction of the project’s first phase, according to their sales and purchase agreements.
Hatten Land’s delayed project includes the Harbour City development – comprising a mall, theme park and three hotel blocks.
PHOTO: COURTESY OF FRANCIS NG
Documents, dated 2016 and provided by Mr Ng, spelt out that the property would be delivered within four years of the date of the document, barring any causes beyond Hatten Land’s control.
These include “exceptionally inclement weather, civil commotion, strikes, lockout, an act of God, fire, flood” as well as any changes that the buyer wanted to be made.
If Hatten Land failed to stick to the agreement, it would have to pay buyers compensation.
The amount would be calculated “from day to day at the rate of 5 per cent a year on such portion of the purchase price before the goods and services tax which shall have by then been paid by the purchaser… from such due date to the date of the developer’s notice”.
Mr Ng said the compensation details so far have been vague.
However, the Hatten Land spokesman said the firm would honour the terms in the contract and address compensation details once the certificate of completion and compliance for the delayed properties had been issued.
He said: “We will continue to use all reasonable endeavours to complete our projects, and similar to what we have done in the past, we will remain in close communication and engagement with affected property buyers on the updates ahead.”
A group of at least 80 people who had bought units in several Hatten developments, protesting ouside ElementX Mall in Melaka on March 18.
PHOTO: NG KIAN NAM/FACEBOOK
Meanwhile, another investor, who wanted to be known only as Mr Wong, said he had bought a Harbour City unit for about RM530,000.
The 28-year-old Singaporean said his mother bought the property in his name in 2017.
He said: “For most of us buyers, we just want to see the properties being completed.”
Hatten Land said construction for the Harbour City project started in 2016, but faced delays of about 380 days by the third quarter of 2019, leading to the dismissal of its original main contractor, China Construction Yangtze River.
The Hatten Land spokesman said: “Following the termination, the contractor removed all tower cranes and safety platforms, which has complicated the resumption of construction activities for the Harbour City project.”
What followed was a legal battle in May 2020 between China Construction Yangtze River and Gold Mart.
An artist's impression of Harbour City in Melaka. The development was to have been completed in 2020, but construction was plagued by various delays.
PHOTO: HATTEN
The Covid-19 pandemic worsened delays, and Hatten Land proposed a divestment of Gold Mart and the Harbour City project with Tayrona Capital – a Singapore firm now in the process of liquidation.
In February 2023, a notice of termination was issued to Tayrona Capital as it had not complied with its obligations, ending its previous agreement.
Since then, evaluation of the structural integrity of the worksite as well as the acquisition of tower cranes have been conducted, and work is slated to resume once a new contractor has been appointed.
The Hatten Land spokesman said: “Once the new contractor has been appointed, we will then be able to give an approximate completion date for the Harbour City project.”
He added that the development is estimated to be completed within three years, barring unforeseen circumstances.
But buyers like Mr Ng and Mr Wong are not convinced.
Mr Ng said: “I have no confidence in Hatten any more.”
