Tag Archives: Fractional Ownership

From ‘fractions of condo’ to a new tack

Posted on 1 Oct 2009 | Comments Off on From ‘fractions of condo’ to a new tack

Primespace is now trying to sell 2 other properties by tender

A company which was marketing ’shares’ in condominium units just a few weeks back has adopted a new tack, and is now putting apartments up for tender.

Following a model similar to that of an unlisted property trust, Primespace Investments Pte Ltd initially promoted ‘fractional ownership’ in two studio apartments, one at One-North Residences and another at One Shenton.

As BT reported on Monday, the apartments would be bought and held by other private limited companies, and investors would pay for shares in those vehicles. This is an unusual way of selling residential property in Singapore.

Each of the vehicles’ share capital would be split into 15 lots. A lot in the company holding the One-North unit would cost US$62,000; a lot in that which owns the One Shenton unit would cost US$110,000.

Primespace has since revamped its website, which is no longer marketing ‘fractional ownership’ in condominium units. It is now trying to sell two other apartments through tender. This is again an uncommon sale method. Continue reading →

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Pssst, want to buy ‘fraction’ of a condo?

Posted on 28 Sep 2009 | Comments Off on Pssst, want to buy ‘fraction’ of a condo?

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.

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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