First industrial property linked to S$3 billion money laundering case sold for over S$3.2 million

Of the five industrial properties subject to sale restrictions in connection with the S$3 billion money laundering case, a factory unit at Shun Li Industrial Park has been sold by private treaty for more than S$3.2 million after failing to sell at its first auction.

The sale was handled by property consultancy ETC. The factory unit at Shun Li Industrial Park in Kaki Bukit Avenue 1 spans 8,880 sq ft and has about 30 years left on its lease.

At its first auction on 23 September, the factory unit had an opening price of S$3.63 million. A buyer offered S$3.1 million, but the offer was rejected and the property went unsold. The buyer and seller subsequently concluded a sale by private treaty.

ETC declined to disclose the exact transaction price, saying only that it exceeded S$3.2 million.

ETC also held an auction for another seven confiscated properties on Thursday (29 October), but all went unsold attracting no bids. Among them was a penthouse at South Beach Residences, which was being auctioned for the second time. Its opening price of S$25.32 million was close to that in the previous round.

Joy Tan, Head of Auction & Sales, ETC, told the media that buyers now tend to favour private treaty deals rather than bidding at auctions, unless bidding at the venue gets lively.

She also said that market interest remained strong despite some luxury homes failing to sell at earlier auctions; viewings at Paterson Suites, for example, remained active.

Tan also noted that many buyers were looking for bargains and making bids too low relative to seller expectations. In addition, a large proportion of the luxury homes had yet to be put up for auction, prompting some buyers to adopt a wait-and-see approach and slowing the pace of sales.

Meanwhile, prospective buyers of some units nearing completion of sale need to undergo know-your-customer (KYC) checks. Tan could not disclose further details at this stage.

Of the more than 80 properties confiscated in the S$3 billion money laundering case, 38 luxury residential units have been put up for auction. Five luxury residential units and one industrial property have been sold.