Dysons sell Wallich Residence penthouse to tycoon Leo Koguan for S$62m

Singapore

THE Dysons behind the eponymous British consumer electronics company are selling their triplex penthouse at Wallich Residence in Tanjong Pagar for S$62 million or close to S$3,000 per square foot on the strata area of 21,108 sq ft, BT understands.

This is lower than the S$73.8 million or S$3,496 psf which the Dysons paid early last year for the residence - Singapore's tallest, perched on the top three levels of the 64-storey, 290-metre high Guoco Tower.

The property is held under Dyson Ltd founder James Dyson's wife, Deirdre.

The buyer is said to be Indonesia-born tycoon Leo Koguan; the US citizen and Texas resident is the co-founder and chairman of IT provider SHI International, which has more than 20,000 customers including Boeing and AT&T according to information on the Forbes website.

Some industry observers said the Dysons' exit price is reasonable. Among other factors, they point to the more cautious overall business sentiment this year amid the Covid-19 pandemic compared with early last year, which may have led the vendors to sell below their original purchase price.

Other considerations were also in play. For one, Wallich Residence is on a leasehold site with a balance tenure of about 89 years. Moreover, Wallich Residence is part of an integrated mixed-use development that also includes offices, retail space and a hotel.

While most residents may enjoy the conveniences and amenities that come from living in a mixed development, some ultra high net worth individuals (UHNWIs) may value the privacy and more exclusive environment in a freehold penthouse or plush apartment within a pure residential project, preferably in a traditional residential prime district such as 9 or 10 .

That said, the triplex penthouse at Wallich Residence offers panoramic views of Singapore's CBD and Sentosa. The top level of the residence has a swimming pool and a terrace area; there is also covered space that may be converted to, say, an entertainment area.

On Level 63 are the living and dining areas, a large gourmet kitchen and back-of-house areas.

Level 62 has five ensuite bedrooms.

BT understands that Savills Singapore acted for the sellers in the transaction. When contacted, the firm declined to comment.

In July last year, just six months after the purchase of the Wallich Residence penthouse, Mr Dyson acquired a newly-built freehold bungalow in the Nassim Road Good Class Bungalow Area, for S$50 million.

"The Dysons have probably found the villa, just a stone's throw from the Singapore Botanic Gardens, to be more suited to their taste. Assuming they are not based in Singapore all the time, they might not have seen much point in maintaining the Wallich Residence penthouse in the CBD," said a market watcher.

Besides the gross loss of S$11.8 million, the Dysons will also be incurring the seller's stamp duty of 8 per cent of the sale price or nearly S$5 million from disposing of the property during the second year after purchase.

When the penthouse was purchased last year, the Dysons, as Singapore permanent residents, would have incurred an additional buyer's stamp duty (ABSD) of 5 per cent (amounting to nearly S$3.7 million) besides the 4 per cent standard buyer's stamp duty (nearly S$3 million) - assuming it was their first Singapore residential property purchase.

Mr Leo, being a US citizen, will not have to pay ABSD on the purchase if he does not own any other Singapore residential properties. (Under the respective free trade agreements, US citizens, along with nationals and permanent residents of Iceland, Liechtenstein, Norway and Switzerland, are accorded the same stamp duty treatments as Singapore citizens.)

Dyson has moved its headquarters from the UK to Singapore. It also had plans for an an electric car project here but pulled the plug on the venture last year as it was not commercially viable.