Mammoth CapitaLand shrugs off hefty extension charges for unsold units
It forked out $3.5m in Q3.
Even if CapitaLand fails to sell any more residential units in Singapore in coming months, the giant property developer will hardly feel the pinch of the city-state’s hefty extension charges.
According to a report by UOB Kay Hian, the maximum possible amount of extension charges that CapitaLand can face is $147.8m, which will happen if the developer fails to move any of its unsold stock.
Although this figure looks hefty, this represents a mere 0.8% of CapitaLand’s book value and only 3.8% of its total cash balances.
In the third quarter, CapitaLand forked out $3.5m for unsold units at The Interlace and Urban Resort.
CapitaLand sold only 45 units valued at $109m from July to September. For the first 9 months of 2015, CapitaLand sold 151 units valued at $412m.
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