Kheng Leong buys 21 Anderson en bloc for $213 mil from Far East Consortium

Kheng Leong Group, the private real estate arm of the family of veteran banker and UOB chairman emeritus Wee Cho Yaw, has bought over 21 Anderson from Hong Kong-listed Far East Consortium International Limited (FEC) for S$213 million. The price works out to S$2,490 psf based on the strata area of 85,552 sq ft for the 10-storey freehold condominium block of 34 units. The development, on land area of slightly over 49,000 sq ft, was completed in the late-1990s and has been refurbished along the way.

Kheng Leong is likely to hold the asset for rental income in the short to mid-term, keeping in view the option for redevelopment.

Market observers suggested that Kheng Leong is unlikely to incur additional conveyance duty (ACD) identical to the additional buyer's stamp duty (ABSD) for the purchase.

The government introduced ACD in March 2017 to plug a tax loophole that some investors had used to save on stamp duty for their residential property purchases by acquiring the properties indirectly, via shares in an entity or entities that own the property.

However, for 21 Anderson, due to multiple layering in the existing holding structure for the asset involving Singapore as well as overseas-incorporated entities, the transaction may not fall under the existing provisions of the ACD legislation.

Photo from: Google Map