Hiap Hoe Group is selling its high-end condominium, Treasure on Balmoral, to its controlling shareholder, Hiap Hoe Holdings, to dodge hefty extension fees under the qualifying certificate (QC) rules, reported the media.
In a statement, the company revealed Hiap Hoe Holdings, which owns 69.85 percent of Hiap Hoe, is buying all 48 units in the upscale condominium development in District 10 for $72.83 million after accounting for shareholder loans and other liabilities. The purchase price is based on a market value of $185 million or $1,789 psf for the 103,439 sq ft project.
Treasure on Balmoral (pictured) was first launched in September 2012 at an initial launch price of between $2,044 and $2,375 psf.
The project’s last expression of interest (EOI) in July failed to attract satisfactory offers, with the highest at $1,750 psf, which is below the guide price of $1,850 psf.
Since the project received Temporary Occupation Permit (TOP) in November 2012, Hiap Hoe has to pay extension fees for unsold units from this period. Notably, Hiap Hoe paid around $5.52 million of fees for a further six months from 2 November.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
