No units sold at first auction for luxury properties seized in S$3 billion money laundering case
The auction drew dozens of bidders, but there was no interest in some of the luxury units.
The exterior of Gramercy Park at Grange Road. (Photo: Knight Frank)
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SINGAPORE: The first properties seized in connection with Singapore's largest money laundering case went under the hammer on Thursday (Sep 17) afternoon, but none were sold.
Dozens of people filled the Knight Frank office in Ocean Financial Centre before the auction started, with more queuing to get in.
With most seats filled, there was only standing room for other interested bidders. Most browsed the catalogue on their phones while waiting for the bidding to start, and no photos, video or audio recordings were allowed.
In total, 65 bidders were on site, of which 30 registered beforehand.
The seized properties that were up for auction were:
- Gramercy Park - Four units with guide prices starting from S$3.8 million to S$7.6 million
- Sloane Residences - Two units with guide prices starting from S$3.6 million to S$3.7 million
- Suntec Tower 1 - Grade A office space with a guide price of S$11.5 million
The auction started at around 2.40 pm, with director of auction and sales at Knight Frank Singapore Tricia Tan setting out the ground rules.
Those who won their bids were expected to put down a 5 per cent to 10 per cent deposit as well as sign an offer to purchase and sub-joint memorandum of contract. The sale should be completed within 10 weeks.
Among the offerings, six residential apartments and one office unit are the forfeited assets in connection with the S$3 billion money laundering case, she told the hall.
LUXURY PROPERTIES
Located along Grange Road, Gramercy Park is a 174-unit freehold development with units that come with private lifts. It received its Temporary Occupation Permit (TOP) in 2016, which was when its first residents started moving in.
The bidding on Thursday started with a four-bedroom unit on level 12 that is 2,691 sq ft, with three bedrooms. Despite an excited murmur through the crowd, the unit received no bid at its starting price of S$7.5 million.
The next unit on the 17th floor, which is 2,659 sq ft, opened at S$7.55 million. The first offer came in at S$4 million, to laughs in the crowd, and it was not long before it hit S$6 million.
Bidders were given bid cards to raise and assistants helped them to call out their bids.
The bidding for the unit ended at S$6.7 million, and it was withdrawn as it did not meet the reserve price.
The third unit on the 18th floor, which is 2,185 sq ft, started at about S$6.3 million and drew no interest.
A bidder put in a counter-offer of S$3.2 million for a two-bedroom and study unit on the 21st floor, which opened at S$3.82 million. This rose quickly to S$3.5 million.
This unit drew particular interest from three bidders, who jostled with each other. About 10 bids later, at S$3.75 million, the unit was withdrawn as it did not meet the reserve price.
The auctioneer, Ms Tan, told the hall that the company would "take it offline" with the highest bidder.
Two 3-bedroom units at Sloane Residences, a 52-unit freehold property at Balmoral Road, had guide prices of between S$3.6 million and S$3.7 million. The units, each measuring 1,249 sq ft, have private lifts.
They drew no interest from the bidders and were both withdrawn.
A 60-year-old attendee who declined to share her name said she was interested in the property due to its proximity to Anglo-Chinese School (Barker Road).
But after viewing the apartment, she estimated that she would have to spend at least S$200,000 to renovate the space.
“I think the person who bought it left the window open and never moved in because you can see the wires still hanging from the ceiling, no light fixtures, the microwave and the oven were gone,” she said.
“I wanted to bid much lower, but I think it'd be too embarrassing to bid it too low,” she said, adding that the highest she was willing to bid was S$3 million.
As the auction of the seized properties concluded, attendees gradually filed out of the hall, leaving fewer than half of the audience remaining.
A 3,498 sq ft office at Suntec, described as a premium Grade A office space that is fitted and ready for occupation, opened at S$11 million.
It received only one counter-offer of S$8 million and was withdrawn as well, as it failed to meet the reserve price.
NEXT STEPS?
This includes whether the real estate company can get into private negotiations with bidders to sell the unit, or if it should repeat the auction.
In usual circumstances, the next step is typically to enter a private negotiation with the highest bidder.
Head of auction and sales Tan Tee Khoon said it is "not uncommon" that a "good number" of properties are withdrawn at an auction.
"Usually the auction is filled with a mixed group of people, people who are just curious. They want to find out how auctions work, and in this particular case, there has been a lot of hype generated prior to today," he said.
Asked what the usual success rate is at an auction, he said it was not possible to give a straight answer, as it depended on the auction.
More than 80 properties will be put up for sale from September to mid-2027. They are part of the S$3 billion worth of assets seized after islandwide raids in August 2023 uncovered millions of dollars earned from an illicit gambling ring in Southeast Asia.
Other properties in the auction include other condominiums, factory units, and a Housing and Development Board (HDB) shophouse put up under owner, mortgagee or public trustee sales.
SRI and Edmund Tie and Company (ETC) will each hold auctions on Sep 23.
