No bid for alleged money launderer’s Sentosa Cove land despite lower opening price at 2nd auction
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The plot of land (left, covered by sound barrier) at 69 Ocean Drive, which is up for sale, as seen on April 15.
ST PHOTO: MARK CHEONG
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SINGAPORE – The Sentosa Cove plot previously owned by Cambodian national Su Baolin, who was arrested with nine other foreigners in a $3 billion money laundering probe
The 19,550 sq ft plot at 69 Ocean Drive was put on the block by OCBC Bank
But there were no bids for the plot at the second auction that was held at Amara Singapore hotel in Tanjong Pagar.
In comparison, a sole counter-offer of $20 million was submitted on April 24 at the first auction of the 99-year leasehold site, which had been advertised at a guide price of $27.1 million, or $1,386 psf.
But the counter-offer was not accepted by OCBC
Among those at the May 21 auction were a local businessman and his wife, who were part of a group of four individuals who had submitted the $20 million counter-offer in the first auction.
When approached by The Straits Times on May 21, the couple declined to comment.
In response to ST’s queries, an OCBC spokesperson said the same day: “There has been serious interest expressed by several people in the purchase of 69 Ocean Drive, including at today’s auction, and conversations are ongoing.
“We will continue to explore all avenues to market the property and recover the overdue loans.”
Ms Joy Tan, head of auction and sales at Edmund Tie, which was appointed to execute the sale, said the property consultant will “reach out to all interested parties including the couple at today’s auction, who were part of the group of four individuals that had made the counter-offer in April”.
An earlier ST report said Su, who is originally from China, owed the bank about $19.7 million in housing loan and credit card debts. With interest incurred until full payment is made, his debt has exceeded $20 million as at April 15.
ST reported that OCBC took legal action to recover the overdue home loan through the sale of the property in August 2023, with the court judgment obtained in the bank’s favour on Jan 5, 2024.
Su, 42, who was arrested on Aug 15, 2023, and faced 13 charges related to forgery, fraud and money laundering, was sentenced to 14 months’ jail after forfeiting about $65 million, or 90 per cent, of his seized assets.
It was earlier reported that police seized about $99 million worth of assets in properties, cash, bank accounts and cryptocurrencies in the names of Su and his wife.
The parcel, located at the northern tip of Sentosa Cove, had housed one of fewer than 10 sea-facing bungalows in Sentosa Cove with a land area exceeding 18,000 sq ft.
It has a 99-year leasehold tenure from July 2005, and offers unblocked views of the sea and the Central Business District.
Mr Samuel Eyo, managing director of Lighthouse Property Consultants, said: “With the lower opening price at the second auction, OCBC is showing that they are willing to negotiate.
“The couple who came again for the second auction is probably trying to assess if there are other interested bidders for the plot, and may want to go into negotiations with the bank privately,” he said.
Mr Robson Lee, a partner at law firm Kennedys Legal Solutions, pointed out that the bank “has a duty to obtain a reasonable price based on prevailing market conditions, when it exercises its power of sale”.
He added: “Banks would usually obtain a valuation report to provide an indicative range of the market values for similar properties in the vicinity before conducting any auction. This is to provide a basis for the guide price.
“Even if the property is sold at below the guide price, I am of the view that the bank would satisfy its duty to sell at a reasonable price under prevailing market conditions. The bank cannot be expected to delay the sale indefinitely as there is a holding cost, which would ultimately be borne by the mortgagor under the mortgage agreement.”
