Payment collected for 98% of sold RiverGate units

Source : Business Times – 8 May 2009

PAYMENT has been collected for 98 per cent of the 542 condo units sold at CapitaLand’s RiverGate project since Temporary Occupation Permit (TOP) was obtained in March, the developer said yesterday.

Payment collection for the remaining 2 per cent, or 11 sold units, is ongoing, and the buyers have been served notice to pay up. The 11 units were ‘all sold separately to individual buyers under the deferred payment scheme (DPS)’, a CapitaLand spokeswoman said.

More than 90 per cent of the 542 RiverGate units sold were under DPS, she added. CapitaLand developed the 545-unit freehold condo in the Robertson Quay area through a 50:50 joint venture with Hwa Hong Corporation.

Asked what CapitaLand will do regarding the 11 buyers that have not paid up, the spokeswoman said: ‘For genuine homebuyers who may face difficulties meeting the payment obligations, we will address these on a case-by-case basis. We will see how we can lend our assistance within the constraints of the obligations under the securitisation structure.’

The progress payments and deferred payment receivables for sold units were securitised through special purpose vehicle Okeanos Investment Corporation, which in January 2007 issued US$477 million ($731 million) of floating rate notes due 2011.

With the proceeds collected for RiverGate so far, the US$477 million of notes are expected to be fully redeemed by the expected maturity date in June 2009, CapitaLand said in a statement yesterday.

RiverGate buyers who opted for DPS paid 20 per cent of the apartments’ price when booking them. Upon obtaining TOP, a further 65 per cent of the price is payable, with the balance of 15 per cent to be paid once the development obtains a Certificate of Statutory Completion and legal completion status from the authorities.

The 43-storey freehold project was launched in phases, with the initial phase in 2005 priced at $1,080 per square foot on average, and the final phase in 2006 priced at $1,600 psf on average. Units in the project have recently changed hands at about $1,200-1,380 psf.

Among those who bought RiverGate units from the developers is property fund manager Ferrell, which acquired 100 units in two tranches – 80 around Chinese New Year in 2005 and 20 later that year.

RiverGate is the first residential project in Singapore to be accorded landmark status by the Urban Redevelopment Authority in recognition of its strategic location and cutting-edge architectural design, CapitaLand pointed out yesterday.

‘At 43 storeys, the development towers above the predominantly 10-storey buildings in the vicinity,’ it said. ‘Against this urban landscape, the majority of RiverGate’s apartments enjoy views of the river and the business district city-scape.’