Developer reach with S$2 .7mil in extension charges

CapitaLand had had to pay $2.7 million to expand its deadline to sell the remaining units at The Interlace.

CapitaLand forked out S$2.7 million in extension costs for the 127 unsold units in The Interlace. This works out to S$21,000 per 7 psf, noted $ unit or S TODAYonline.

Originally, the remaining flats at the 1,040-unit condominium on Depot Road should have been disposed by 13 March, but because spending the months. have another costs, CapitaLand’s deadline to promote the leftover properties there’s been

Last month, Property Developers’ Organization of Singapore (REDAS) President Augustine Tan estimated that developers in Singapore could carry nearly S$100 million in extension costs for failing to promote their remaining inventory in 2016.

Nevertheless, the developer transferred 222 residential units with a combined worth S$506 million in the city state during the period under review, up from the S$197 million it gained for selling 69 units a year past.

In its latest earnings report, CapitaLand shown that it’s identified purchasers for 8 9 percent of the units it’s launched up to now, adding the 55-unit The Nassim at Nassim Hill and the 109-unit Victoria Park Villas in Victoria Park Road are set to be unveiled in H 1 2016. Its Cairnhill Nine advancement also posted strong sales, with 193 out of the 268 units changing hands as of last Thursday (14 April).

Meanwhile, CapitaLand’s earnings declined by 2.3 percent to S$894.2 million in Q1 2016 on an annual basis, largely due to lower contributions from its developments in Singapore and Viet Nam.

Another cause for the lower revenue is the absence New Launch of good value gain of S$59.6 million as a result of the usage change of Ascott Heng Shan Shanghai in Q1 2015. But the fall in earnings was partially offset by higher contributions from rents at its serviced residence company and CapitaGreen, together with sales in China.

Despite the drop in sales, CapitLand’s gain after taxation and minority interests (PATMI) soared by 35.4 percent year-on-year to S$218.3 million in Q1 2016, thanks to the divestment of a property in China, Somerset ZhongGuanCun Beijing.