Firm marketing shares in apartments; industry watchers still wary
A new way of selling condominium units here has emerged amid the recent resurgence in the property market.
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Registered three months ago, Primespace Investments Pte Ltd is marketing ‘shares’ in apartments to investors with at least $62,000 to spare.
It has two studio units available – one at One-North Residences in Buona Vista and the other at One Shenton near Raffles Place.
While Primespace says it is selling ‘fractional ownership’, investors will not own the properties directly. The apartments will be bought and held by other private limited companies, and what investors pay for are shares in those vehicles. BT understands investors will not lodge caveats on the properties.
Each of these companies’ share capital will be split into 15 lots. An investor has to pay $62,000 for one lot in the company which owns the One-North unit, or $110,000 for one lot in the company that owns the One Shenton unit.
After the share capital is allotted to investors, Primespace will continue to manage and rent out the properties. It says it will distribute rental income to investors every year, and it is offering a guaranteed yield of 5 per cent for the first year of investment. If an apartment’s value increases by ‘a certain level (usually 40 per cent)’, Primespace will sell it and share the profit among investors. Continue reading
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