Kheng Leong bought remaining 45 units at The Nassim

By The Edge Property / The Edge Property | January 17, 2017 10:29 AM SGT
CapitaLand announced that its wholly owned subsidiary, CRL Realty Pte Ltd, has sold its 100% stake in Nassim Hill Realty to Kheng Leong Company. NHR owned the remaining 45 unsold units at The Nassim, a luxury freehold condominium with 55 units. The purchase consideration was $411.6 million.
The Nassim was completed in 3Q2015 and CapitaLand is due to pay extension charges if it fails to sell all the units by 3Q this year, i.e. two years from completion date. The extension charges are computed based on 8%, 16% and 24% of the land purchase price for the first, second and third years respectively. The amount is pro-rated according to the proportion of unsold units.
The Nassim occupies the site of the former ANA Hotel that was acquired by DBS Land (now part of CapitaLand) in 1999. ANA Hotel ceased operations in 2004 and was rezoned for redevelopment into an upscale condo. According to media sources, the book value of the hotel then was $129.7 million. Based on this, the extension charges if the 45 units remain unsold by 3Q this year would amount to more than $8 million.
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The Nassim made headlines in June when an Indonesian family picked up two units at $20.3 million and $13.7 million. In September, a Singaporean buyer shelled out $14 million, or $3,204 psf, for a 4,370 sq ft unit in the project. The ten units sold to-date ranged from $2,248 psf for the $20.3 million unit to $3,260 psf for a 1,927 sq ft unit, based on caveats lodged.