Business case
Our client, an Asia-focused investment fund, was facing a SIAC arbitration arising from the purchase of a multi-function warehouse in China (TargetCo). The seller was claiming for the final instalment of the consideration, which had been withheld by the buyer (our client) due to the cancellation of a long-term lease, which was a precondition of the purchase agreement.
We adopted a “diminution in value” approach as the warehouse’s value had been permanently diminished by the loss of a large anchor client. Our damage calculation compared the “As Warranted” value without breach with its “As Is” value. We were instructed to prepare damage calculations both ex ante and ex post due to uncertainty around which approach would be preferred under the relevant Singapore law.
We were appointed as quantum expert to evaluate the damage suffered by our client due to the early termination of the long-term lease. Our client’s goal was to demonstrate that its losses exceeded the amount of the final payment.