Conversion to serviced apartments a costly affair for Newfort Realty

Singapore

A CHANGE of plans that involved converting the residential development on a freehold site off Orchard Road into serviced apartments has come at a hefty cost for Newfort Realty, which has had to cough up some S$10 million in taxes.

Daunted by the abysmal residential market, the private firm held by five shareholders at the end of 2013 pulled the brakes on a planned 68-unit residential project at 18 Mount Elizabeth Road even though a development charge (DC) of S$3.9 million had already been incurred and the showflat was almost ready.