SINGAPORE: At least two tenants at Taste Orchard have said they would reject a proposed settlement with master tenant Hao Mart as the current terms do not address the issue of business losses.
A third tenant told CNA that it would only accept the terms if Hao Mart compensates it for its renovation costs.
Affected businesses at the Orchard Road mall have been in limbo since they were informed in September that they would have to vacate by the end of this year. Landlord OG had terminated Hao Mart's lease after less than two years, way ahead of the seven-and-a-half-year lease that was signed.
The five retail floors at Taste Orchard host a mix of tenants, including F&B businesses, hair salons, aesthetic clinics and education centres.
Hao Mart's supermarket chain Eccellente used to occupy three levels.
It had vacated from the basement and was in the midst of moving out of the second floor when CNA visited in September. By Tuesday (Oct 21), Eccellente had moved all its products from the second floor, with only bare shelves, trolleys and equipment in cling wrap left behind.
Only equipment and trolleys remain of Hao Mart's supermarket Eccellente on the second floor of Taste Orchard as of Oct 21, 2025. All its goods and produce have been moved out. (Photo: CNA/Koh Wan Ting)
Tenants told CNA that they had a virtual meeting with Avista Advisory Partners, the business advisory firm appointed by Hao Mart, where the terms of the proposed agreement were set out weeks ago.
The firm then sent out an email with a template settlement agreement over the past weekend.
The email, seen by CNA, reiterated that tenants are supposed to vacate their premises no later than Dec 31 this year. However, it added that Hao Mart can try to grant an extension of up to Mar 31, 2026, "on a best effort basis and subject to confirmation by OG Private Limited".
The email also highlighted three points, including a refund of the tenants' security deposit within two months after Dec 31, 2025 or Mar 31, 2026, whichever is applicable
Tenants were also asked to provide details of unamortised expenditure incurred for the fit-out of their units. This represents costs that have been "rendered unrecoverable or wasted", due to the termination of the tenancy agreement.
Tenants are, however, required to reduce the amount as much as they can by salvaging, selling or reusing items where possible, the email stated.
The third point relates to a requirement for tenants to hand in the unit in the same condition as at the start of their tenancy. Hao Mart is asking tenants to provide an estimated amount which will be incurred for reinstatement, and the amount of time needed.
"Hao Mart will discuss internally and evaluate this information to assess if such reinstatement could be waived and will intimate you accordingly," the email stated, adding that this was not assured or promised.
Empty shelves and equipment in cling wrap stand where a bustling supermarket used to be at Hao Mart's supermarket Eccellente on the second floor of Taste Orchard. (Photo: CNA/Koh Wan Ting)
Two tenants that CNA spoke to under condition of anonymity said that the compensation should take into account the drop in business, pointing to losses incurred since news of the lease termination broke.
Both are hoping to negotiate better settlement terms with Avista, but may resort to legal avenues as "the last step" if this fails.
One tenant described the loss in business as a "sharp and drastic drop", as customers were reluctant to commit due to the uncertainty of continued service. Since September, sign-ups were "very rare", the tenant said. He added that the losses were obvious when comparing the months of August and October.
Apart from compensation, the tenant hopes that Hao Mart can waive rents for the remaining tenancy to help them cope with operational losses. The tenant will be consolidating the data that Avista requested before responding to Hao Mart's offer.
Another tenant similarly said Hao Mart's proposal was not acceptable because it did not take into account the loss in revenue.
"We have customers that we need to give service for the future, they paid for it, ... we're offering service for the long term.
"Ever since they told us (we had to move out), it's hard for us to actually make sales you know, because customers know it's (going to be) closed. How can you promise somebody right now when in three months, you're closed? Nobody would want to commit," said the tenant, who asked for compensation in that aspect.
Without those funds, the business has no money to set up elsewhere, the tenant said.
"We are probably going to get back to (Avista) through our lawyers to request a certain type of settlement. We don't want to go to court, but if that will be refused, we will probably go," he added.
A third tenant said that he would likely accept the settlement if it included the cost of renovation.
CNA has contacted Hao Mart about the proposed settlement. Neither Hao Mart nor OG has addressed CNA's questions in September about why the lease was terminated early.
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A third tenant told CNA that it would only accept the terms if Hao Mart compensates it for its renovation costs.
Affected businesses at the Orchard Road mall have been in limbo since they were informed in September that they would have to vacate by the end of this year. Landlord OG had terminated Hao Mart's lease after less than two years, way ahead of the seven-and-a-half-year lease that was signed.
The five retail floors at Taste Orchard host a mix of tenants, including F&B businesses, hair salons, aesthetic clinics and education centres.
Hao Mart's supermarket chain Eccellente used to occupy three levels.
It had vacated from the basement and was in the midst of moving out of the second floor when CNA visited in September. By Tuesday (Oct 21), Eccellente had moved all its products from the second floor, with only bare shelves, trolleys and equipment in cling wrap left behind.
Only equipment and trolleys remain of Hao Mart's supermarket Eccellente on the second floor of Taste Orchard as of Oct 21, 2025. All its goods and produce have been moved out. (Photo: CNA/Koh Wan Ting)
Tenants told CNA that they had a virtual meeting with Avista Advisory Partners, the business advisory firm appointed by Hao Mart, where the terms of the proposed agreement were set out weeks ago.
The firm then sent out an email with a template settlement agreement over the past weekend.
The email, seen by CNA, reiterated that tenants are supposed to vacate their premises no later than Dec 31 this year. However, it added that Hao Mart can try to grant an extension of up to Mar 31, 2026, "on a best effort basis and subject to confirmation by OG Private Limited".
The email also highlighted three points, including a refund of the tenants' security deposit within two months after Dec 31, 2025 or Mar 31, 2026, whichever is applicable
Tenants were also asked to provide details of unamortised expenditure incurred for the fit-out of their units. This represents costs that have been "rendered unrecoverable or wasted", due to the termination of the tenancy agreement.
Tenants are, however, required to reduce the amount as much as they can by salvaging, selling or reusing items where possible, the email stated.
The third point relates to a requirement for tenants to hand in the unit in the same condition as at the start of their tenancy. Hao Mart is asking tenants to provide an estimated amount which will be incurred for reinstatement, and the amount of time needed.
"Hao Mart will discuss internally and evaluate this information to assess if such reinstatement could be waived and will intimate you accordingly," the email stated, adding that this was not assured or promised.
Empty shelves and equipment in cling wrap stand where a bustling supermarket used to be at Hao Mart's supermarket Eccellente on the second floor of Taste Orchard. (Photo: CNA/Koh Wan Ting)
LOSS IN BUSINESS NOT ADDRESSED
Two tenants that CNA spoke to under condition of anonymity said that the compensation should take into account the drop in business, pointing to losses incurred since news of the lease termination broke.
Both are hoping to negotiate better settlement terms with Avista, but may resort to legal avenues as "the last step" if this fails.
One tenant described the loss in business as a "sharp and drastic drop", as customers were reluctant to commit due to the uncertainty of continued service. Since September, sign-ups were "very rare", the tenant said. He added that the losses were obvious when comparing the months of August and October.
Apart from compensation, the tenant hopes that Hao Mart can waive rents for the remaining tenancy to help them cope with operational losses. The tenant will be consolidating the data that Avista requested before responding to Hao Mart's offer.
Another tenant similarly said Hao Mart's proposal was not acceptable because it did not take into account the loss in revenue.
"We have customers that we need to give service for the future, they paid for it, ... we're offering service for the long term.
"Ever since they told us (we had to move out), it's hard for us to actually make sales you know, because customers know it's (going to be) closed. How can you promise somebody right now when in three months, you're closed? Nobody would want to commit," said the tenant, who asked for compensation in that aspect.
Without those funds, the business has no money to set up elsewhere, the tenant said.
"We are probably going to get back to (Avista) through our lawyers to request a certain type of settlement. We don't want to go to court, but if that will be refused, we will probably go," he added.
A third tenant said that he would likely accept the settlement if it included the cost of renovation.
CNA has contacted Hao Mart about the proposed settlement. Neither Hao Mart nor OG has addressed CNA's questions in September about why the lease was terminated early.
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