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Thread: Banker Wee Cho Yaw buys all 45 unsold units at The Nassim for $411.6m

  1. #1

    Default Banker Wee Cho Yaw buys all 45 unsold units at The Nassim for $411.6m

    http://www.straitstimes.com/business...-at-the-nassim

    Banker Wee Cho Yaw buys all 45 unsold units at The Nassim for $411.6m

    Developer CapitaLand avoids millions of dollars in penalties with Kheng Leong's buy

    One of Singapore's richest men, veteran banker Wee Cho Yaw, has bought all 45 unsold units at upmarket condominium, The Nassim, for $411.6 million.

    The bulk sale gets developer CapitaLand off the hook over penalties that apply to unsold properties after a stipulated period. The penalties could have run to millions of dollars.

    Mr Wee, chairman emeritus of United Overseas Bank, bought the properties through his family's private real estate arm, Kheng Leong.

    The deal values the property at $407.2 million, or $2,300 per sq ft.

    CapitaLand said the agreed property value represents a bulk sale discount of about 18 per cent on the current individual unit sale price.

    This is in line with a range of discounts seen at recent bulk sale transactions, such as the 156 units sold at Nouvel 18 at a discount of about 16 per cent, as well as the 30 units sold at iLiv@Grange with 23 per cent off.

    The 45 units at The Nassim make up a strata area of 16,446 sq m, and was sold by CapitaLand subsidiary CRL Realty, which owns the property developer Nassim Hill Realty.

    Other individual buyers have snapped up 10 units in the property at 18, Nassim Hill, which features 55 units in eight five-storey blocks.

    It was previously reported that some of these buyers include Mr Sigid Wonowidjojo and his relative. Mr Wonowidjojo's family controls Indonesian cigarette maker Gudang Garam.

    Of the 45 units purchased by Mr Wee, three are five-bedroom units, and 16 are four-bedroom units. The remaining 26 are three bedders.

    The deal is the latest in a series of recent bulk sales of residential units which developers have done to avoid the Qualifying Certificate (QC) penalties.

    Under the Residential Property Act, developers issued with a QC upon buying private residential land must finish building the project within five years of acquiring the site and sell all units within two years of obtaining a temporary occupation permit (TOP).

    Failing that, the developer pays extension charges pro-rated to the proportion of unsold units.

    The Nassim, which received its TOP in August 2015, would have had to pay extension charges by August this year on unsold units.

    CapitaLand estimated that if the 45 units had been unsold by August, it would have had to pay $9.3 million in the first year. These fees would have jumped to $27.9 million by the third year.

    Developers paid far more in extension charges last year compared with the same period for 2015. As at Oct 27, the Government collected about $58.2 million in fees, up from just $24.9 million collected in the whole of 2015, said the Singapore Land Authority last year.

  2. #2

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    the wily old fox has bought. normally he would wait for blood but now he let capitaland make $161m off him.

  3. #3

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    he will need to pay 15% absd ?

  4. #4

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    Quote Originally Posted by taggy View Post
    he will need to pay 15% absd ?
    no need. he bought the developer company from capitaland.

  5. #5

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    Quote Originally Posted by bargain hunter View Post
    the wily old fox has bought. normally he would wait for blood but now he let capitaland make $161m off him.
    but come to think of it. 2300psf is probably closer to current replacement cost. capitaland can make $161m from him only because the land was acquired cheaply long ago i suppose.

  6. #6

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    Quote Originally Posted by bargain hunter View Post
    no need. he bought the developer company from capitaland.
    wow like that he can hold on to the 45 units, and sold 1 by 1 when market turns good again?

  7. #7
    Join Date
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    I would guess that he calculated that he would still be able to make another $161m or even much more from selling the units piece by piece at a good price later on.........

    Capitaland needs to generate cash inflow every year to meet dividends payment, so they have to cut short their profits...........

    Quote Originally Posted by bargain hunter View Post
    the wily old fox has bought. normally he would wait for blood but now he let capitaland make $161m off him.

  8. #8

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    Quote Originally Posted by taggy View Post
    wow like that he can hold on to the 45 units, and sold 1 by 1 when market turns good again?
    yes. i think that's the whole idea.

  9. #9

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    Quote Originally Posted by teddybear View Post
    I would guess that he calculated that he would still be able to make another $161m or even much more from selling the units piece by piece at a good price later on.........

    Capitaland needs to generate cash inflow every year to meet dividends payment, so they have to cut short their profits...........
    capitaland also has to save millions in QC penalties which they cannot account to shareholders if they hold on for long term. on the other hand, wee cho yaw's company, being 100% singapore owned can hold for long term.

    the interesting thing is that wee cho yaw's purchase seem to signal that he is positive on freehold CCR.

    combine that with this analysis: https://www.bloomberg.com/news/artic...ree-year-slump

    in particular: "Hong Kong’s November increase in stamp duty to 30 percent for foreigners makes Singapore’s 18 percent rate more attractive to overseas buyers, particularly mainland Chinese who are seeking investments abroad to help shield them from a further weakening of the yuan."

    that may have accounted for the increase in high value purchases spotted in Nov and Dec.

  10. #10
    Join Date
    Aug 2009
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    ... u know, at his age, still bother about making money ? this one got to take a long time to monetize, by then ..

    maybe he already had some creative schemes behind ... like packaging into some Pty Backed Note and sell to PEs.

  11. #11

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    Quote Originally Posted by taggy View Post
    wow like that he can hold on to the 45 units, and sold 1 by 1 when market turns good again?
    Yep. It's a good deal. So why not?

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