CapitaLand pays S$2. 7 million extension charge for The Interlace

CapitaLand yesterday said it has paid an extension charge for unsold units at The Interlace condominium while reporting a 35. 4 per cent on-year increase in first quarter net profit to S$218. 3 million.

The property developer said it has paid S$2. 7 million in extension charges for the 127 unsold units, or S$21, 000 (S$7 per square foot) on a per unit basis. Units in the 1, 040-unit condominium along Depot Road had to be sold by March 13, 2016, and have now been given a six-month extension.

Developers face potential extension charges of close to S$100 million for unsold private residential units in 2016, said Real Estate Developers’ Association of Singapore (REDAS) president Augustine Tan in March.

CapitaLand said it has sold 89 per cent of its launched residential projects, adding that 55-unit The Nassim and the 109-unit Victoria Park Villas will be ready for launch during the first half of this year.

It also received strong interest for Cairnhill 9, with 193 out of 268 units sold as of April 14.

The developer sold 222 residential units worth S$506 million in Singapore during the first quarter, compared to 69 units worth S$197 million during the same period a year earlier. Nonetheless, it expects the impact of the property cooling measures to continue to weigh up on the market.

Searching ahead, web design manager and CEO Lim Ming Yan reported the group will find attractive financial commitment opportunities to raise its frequent income in order to maintain advancement gains out of trading materials.

He increased that CapitaLand will maintain steadily its focus on the core stores of Singapore and Cina, growth stores of Vietnam and Dalam negri, as well as the world wide platform of its maintained residences online business.