Luxury properties seized in S$3 billion money laundering case fail to sell at auction

[SINGAPORE] A two-bedroom plus study apartment at Gramercy Park drew the keenest bidding among seven properties seized in connection with Singapore’s S$3 billion money laundering case, but failed to sell under the hammer on Thursday (Sep 17).

All seven properties – four apartments at Gramercy Park, two at Sloane Residences and an office unit at Suntec Tower One – were withdrawn after failing to meet their reserve prices, which were not disclosed.

The Knight Frank auction at Ocean Financial Centre drew 65 attendees, including 30 registered bidders. The rest were walk-ins.

The room was packed, with some attendees standing at the back.

Tan Tee Khoon, head of auctions and sales at Knight Frank Singapore, said that it was not uncommon for properties to be withdrawn at an auction despite a sizeable turnout, as some attendees might merely be curious observers.

Bidding was most active for unit #21-07 at Gramercy Park. The fully furnished, freehold apartment spans 1,292 square feet (sq ft) and comprises two bedrooms and a study.

It had an opening price of S$3.82 million, or S$2,957 per square foot (psf).

After offers of S$3.2 million and S$3.3 million were rejected, bidding picked up at S$3.5 million and rose in mostly S$25,000 increments as three interested parties competed for the unit.

The highest offer came in at S$3.75 million, or about S$2,902 psf. The auctioneer withdrew the property after the bid fell short of its reserve price.

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Some 42 of Gramercy Park’s 174 apartments, or about 24 per cent, are two-bedroom plus study units.

A renovated four-bedroom apartment at #17-01 also drew interest. The 2,659 sq ft unit, which has unblocked views, opened at S$7.55 million, or about S$2,839 psf.

Initial offers of S$4 million and S$4.5 million were rejected before bidding picked up from S$6 million. Two bidders subsequently traded offers, taking the price to S$6.7 million, or around S$2,520 psf. The property was withdrawn after the highest bid failed to meet its reserve price.

Tricia Tan, director of auction and sales at Knight Frank Singapore, said that the firm would update the relevant authorities on the results.

The authorities would then decide whether to conduct another auction or enter into private negotiations with interested bidders.

“There is interest, but (the bids) did not meet the reserve prices set,” she noted.

She added that a sale becomes binding only when the hammer falls, after which the successful bidder must pay a 10 per cent deposit and sign the sale contract.

Interest was more muted for the remaining five seized properties. 

At Gramercy Park, a 2,691 sq ft, four-bedroom unit at #12-09 was withdrawn after opening at S$7.5 million, while a 2,185 sq ft, three-bedroom unit at #18-02 was withdrawn at its opening price of S$6.285 million.

Completed in 2016, Gramercy Park is a freehold District 10 development at 57 Grange Road, within a luxury residential enclave near embassies and Good Class Bungalow areas.

At Sloane Residences, another freehold development in District 10, two three-bedroom apartments of 1,249 sq ft each were withdrawn. The sixth-floor unit opened at S$3.65 million, while the eighth-floor unit opened at S$3.68 million.

The sole commercial property among the seven seized assets was a 3,498 sq ft office at Suntec Tower One, with a 99-year lease from March 1988.

It opened at S$11 million, but an offer of S$8 million, or about S$2,287 psf, was rejected before the property was withdrawn. The sale would not have been subject to goods and services tax.