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moneyspinner
22-12-10, 19:29
$36 million Sentosa Cove deal called off
He lost about half a million dollars in deposit, agent fees, legal fees, and procedural fees. -AsiaOne

Wed, Dec 22, 2010
AsiaOne
The deal to sell the S$36 million Sentosa Cove home located on Paradise Island has been called off.

According to a report in Lianhe Zaobao, the deal fell through after the buyer realised he paid over the market rate after reading media reports surrounding the sale in May this year.
The house has a land area of 14,983 sq ft and a built-up area of about 17,000 sq ft.
The buyer, who is believed to be a 31-year-old Chinese permanent resident Shen Bin, is the son of Shen Wen Rong, the president of Chinese firm Sha Steel.
The $36 million home
Click on thumbnail to view http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic1tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic1.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic2tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic2.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic3tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic3.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic4tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic4.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic5tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic5.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic6tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic6.html)Shen Bin is currently the chief financial officer of the company, and is slated to take over the company from his father.
According to the daily, he mistakenly believed that $36 million was the market price for the property until media reports said otherwise. He then chose to withdraw from the deal.
He lost about $500,000 in deposit, agent fees, legal fees, and procedural fees.
Reporters were unable to contact him yesterday as he was at a meeting, then later could not be reached on his hand phone.

Wild Falcon
22-12-10, 22:14
An indication that even the super-rich will have no qualms about walking away from a bad deal and bad investment even if they have lots of money to burn. I.e. just because someone is rich doesn't mean he doesn't care about making sound investments.

sleek
22-12-10, 22:19
So will this Super Property Agent still get his/her commission? :D

focus
22-12-10, 22:30
An indication that even the super-rich will have no qualms about walking away from a bad deal and bad investment even if they have lots of money to burn. I.e. just because someone is rich doesn't mean he doesn't care about making sound investments.

But I guess... the question now is this guy who is the CFO of his father's listed company .... Is he really qualified to be a CFO?

I mean.. no matter how rich, when you buy a house, you will ask about the price of the house next door or surrounding.. he does not even do that? Or has he been lied to?

teddybear
22-12-10, 22:51
Paying $2403 psf land price for 99LH in Sentosa (aka Paula Mati)? Ha ha ha! If D9-11 may be Ok, but definitely not in "Paula Mati". :cheers1:


$36 million Sentosa Cove deal called off
He lost about half a million dollars in deposit, agent fees, legal fees, and procedural fees. -AsiaOne

Wed, Dec 22, 2010
AsiaOne
The deal to sell the S$36 million Sentosa Cove home located on Paradise Island has been called off.

According to a report in Lianhe Zaobao, the deal fell through after the buyer realised he paid over the market rate after reading media reports surrounding the sale in May this year.
The house has a land area of 14,983 sq ft and a built-up area of about 17,000 sq ft.
The buyer, who is believed to be a 31-year-old Chinese permanent resident Shen Bin, is the son of Shen Wen Rong, the president of Chinese firm Sha Steel.
The $36 million home
Click on thumbnail to view http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic1tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic1.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic2tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic2.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic3tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic3.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic4tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic4.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic5tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic5.html)http://www.asiaone.com/static/business/gallery/220610_36mhome/images/pic6tn.jpg (http://www.asiaone.com/static/business/gallery/220610_36mhome/pic6.html)Shen Bin is currently the chief financial officer of the company, and is slated to take over the company from his father.
According to the daily, he mistakenly believed that $36 million was the market price for the property until media reports said otherwise. He then chose to withdraw from the deal.
He lost about $500,000 in deposit, agent fees, legal fees, and procedural fees.
Reporters were unable to contact him yesterday as he was at a meeting, then later could not be reached on his hand phone.

bargain hunter
22-12-10, 23:02
he is ah sia gia mah. 31 year old, father's company doesn't seem to be a listed company rite? maybe juz a title and he spends most of his time losing his father's empire? maybe he thought is 36m rmb?!


But I guess... the question now is this guy who is the CFO of his father's listed company .... Is he really qualified to be a CFO?

I mean.. no matter how rich, when you buy a house, you will ask about the price of the house next door or surrounding.. he does not even do that? Or has he been lied to?

OLY99
22-12-10, 23:07
When interviewed the agent, she told the media that this clown double the price when he was told the surrounding is transacted at around 15 million. He said very cheap wat. Now said is above market price? Stupid CFO!!! How to trust china company accounts??? I think he kana "F" by his father so LL must cancel deal

bargain hunter
22-12-10, 23:13
yeah. that reminds me of that sunday times article many months ago, he did say cheap! anyway, china ccounts can't be trusted. :ashamed1:


When interviewed the agent, she told the media that this clown double the price when he was told the surrounding is transacted at around 15 million. He said very cheap wat. Now said is above market price? Stupid CFO!!! How to trust china company accounts??? I think he kana "F" by his father so LL must cancel deal

mantrix
23-12-10, 10:31
So will this Super Property Agent still get his/her commission? :D

The agency usually gets 50%

Wild Falcon
23-12-10, 10:41
Well, maybe at the that time, he thought the "luxury" market will "huat" big big like what all the gurus have been predicting since 2 years ago but then realise he make the wrong decision lor. I think everyone make wrong investments every now and then lah - at least he has the guts to admit it is wrong and walk away and lose only $500k. Some people will just complete the transaction and lose MILLIONS to save face.


But I guess... the question now is this guy who is the CFO of his father's listed company .... Is he really qualified to be a CFO?

I mean.. no matter how rich, when you buy a house, you will ask about the price of the house next door or surrounding.. he does not even do that? Or has he been lied to?

ay123
23-12-10, 10:46
Well, maybe at the that time, he thought the "luxury" market will "huat" big big like what all the gurus have been predicting since 2 years ago but then realise he make the wrong decision lor. I think everyone make wrong investments every now and then lah - at least he has the guts to admit it is wrong and walk away and lose only $500k. Some people will just complete the transaction and lose MILLIONS to save face.

i read the newspaper that interviewed the agent. don think is for investment purpose. the newspaper reported he himself ask the agent to double the price when he heard the price of like 15 million. that time i tot he is trying to "wash" money in singapore

ay123
23-12-10, 10:49
this is the comment the idiot made.......

$36m home not a problem http://www.asiaone.com/a1media/site/common/blank.gifBy Goh Chin Lian and Shuli Sudderuddin
When real estate agent Jasmine Png told her client from China that the Sentosa Cove property he was eyeing was about $15 million, he did a double take.
He asked her to repeat the amount.
'Then he asked if it was haunted because he thought it was too cheap,' said Ms Png.

mogyi
23-12-10, 11:49
I think it could be this kid makes daddy angry by fooling around too much or not taking instructions from daddy. So when daddy gets angry, "this month no pocket money for you!" hahaha....

it actually happen to my friend (much smaller scale of course) who's dad is multi millionaire. We were in NUS then and bcos he fools around too much his dad cancel his 2 dr mercs birthday present but again.. later mommy brought for him a 2 door peuguet to make him happy.

jwong71
23-12-10, 13:01
So will this Super Property Agent still get his/her commission? :D

i will ask my frd on her commission part.. if i see her ard casino or some countdown party

focus
23-12-10, 13:46
he is ah sia gia mah. 31 year old, father's company doesn't seem to be a listed company rite? maybe juz a title and he spends most of his time losing his father's empire? maybe he thought is 36m rmb?!

Haha.. that seems the most plausible yet still unflattering explaination for him if he ever does say that..haha..

kingkong1984
23-12-10, 16:03
Maybe it's a sham deal.

I pay $36 million, you give me back $18 million under table. But you must give me the money first before I execute and cannot tell my father. Else no deal. Could also be other conditions...

joking.

mr funny
23-12-10, 16:08
http://www.straitstimes.com/Money/Story/STIStory_616614.html

Dec 23, 2010

The $36 million house that wasn't

By Esther Teo


THE $36 million record deal for a Sentosa Cove bungalow that set tongues wagging in April this year seems to have fizzled out, with the buyer forfeiting a cool $500,000 deposit and more.

Lianhe Zaobao reported yesterday that the buyer of the 14,983 sq ft, 99-year leasehold site on Paradise Island recently backed out of the deal.

He had cold feet after learning from widespread media coverage of the deal at the time that his offer of $2,403 per sq ft (psf) far outstripped market prices.

The psf price could be the highest for a bungalow sale in Singapore, experts said.

The buyer is said to be Mr Shen Bin, a Chinese national who is a Singapore permanent resident (PR). He is believed to be the son of billionaire entrepreneur Shen Wenrong, chairman of China-based steel manufacturing firm Shagang Group.

China's Hurun Wealth Report ranked the older Mr Shen as the 13th richest individual in China this year.

The younger Mr Shen - touted to be the successor in heading up the firm - is said to have forfeited more than $500,000 when he backed out of the deal, including the deposit, commission, lawyers' fees and administrative charges.

Experts said the move is unlikely to have a large impact on prices since the record price was a 'one-off' occurrence.

OrangeTee research head Tan Kok Keong said there would be marginal impact on current asking prices since few sellers price their properties as ambitiously.

He added that as Sentosa Cove is the 'playground for the rich' and is the only area here where non-PR foreigners can own landed homes, the demand and prices of property there - especially landed types - would remain healthy.

Mr Colin Tan, research and consultancy director of Chesterton Suntec International said, however, that the aborted deal might be good for the market as asking prices on Sentosa Cove might now become more realistic, facilitating transactions between genuine buyers and sellers.

The 2 1/2-storey bungalow beside the waterway has a private pool and a berth for a yacht. It last changed hands in September last year for $20.18 million or $1,347 psf.

The property was first sold in April 2007 by Ho Bee, the developer of Paradise Island, for $18.1 million or $1,208 psf.

hopeful
23-12-10, 16:17
points taken from another forum,

nobody notice the time frame?
May and December 6 months gap, OTP that long?
or is the newshound very inefficient?

If sign OTP, seller can sue the buyer for specific performance.
Lucky for him, China has 1 child policy - so company will still go to him.

august
23-12-10, 19:27
points taken from another forum,

nobody notice the time frame?
May and December 6 months gap, OTP that long?
or is the newshound very inefficient?

If sign OTP, seller can sue the buyer for specific performance.
Lucky for him, China has 1 child policy - so company will still go to him.

not unusual for buyer to ask for longer completion, in this case 6 mths

bargain hunter
23-12-10, 19:57
but option exercised and caveat lodged liao leh. still can dun complete and won't get sued? curious...


not unusual for buyer to ask for longer completion, in this case 6 mths

acidic.straw
23-12-10, 20:07
i read the newspaper that interviewed the agent. don think is for investment purpose. the newspaper reported he himself ask the agent to double the price when he heard the price of like 15 million. that time i tot he is trying to "wash" money in singapore

Even if he is willing to double the price, shouldnt his agent do her due diligence to get the best deal (meaning lowest price) for him? :confused:

hopeful
23-12-10, 20:10
not unusual for buyer to ask for longer completion, in this case 6 mths

Don't know about that, because never bought that expensive a property before :o
However if buyer put only miserable 1% option fee and ask for 6 months option......
Thought the longer the option, the seller will ask for more % option fee.

hopeful
23-12-10, 20:13
Even if he is willing to double the price, shouldnt his agent do her due diligence to get the best deal (meaning lowest price) for him? :confused:

Why would the agent shot herself in the foot? The bigger the quantum, the more her commission and the bigger her bragging rights.
She had already done her duty by informing him of the prices.

acidic.straw
23-12-10, 20:55
Why would the agent shot herself in the foot? The bigger the quantum, the more her commission and the bigger her bragging rights.
She had already done her duty by informing him of the prices.

She may have already shot herself in the foot by her action. If the story is true, then she may have breached her duty as an agent in not demonstrating her fiduciary duty to her client ie to act in the best interest of the client. Sorry, just informing him of the general prices is not enough to cut it as acting in the best interest of the client.:doh:

ay123
24-12-10, 08:31
really cannot understand why he must double the price. isnt he able to get 2 units with that price?? he can just add 1 million each above the transacted price :confused: :confused: :confused: . something fishy behind the deal

mogyi
24-12-10, 09:20
really cannot understand why he must double the price. isnt he able to get 2 units with that price?? he can just add 1 million each above the transacted price :confused: :confused: :confused: . something fishy behind the deal

MONEY LAUNDRY ....

hopeful
24-12-10, 09:30
Maybe he was not approved by LDU ?
He got 2 choices, admit he stupid or admit he not approved by LDU.
If admit he was stupid, he lose face and $500k ++ only.
If admit he is not approved by LDU, lose even more face. Sentosa LH landed is supposed to be easy for foreigners to obtain. If he cannot obtain despite paying double the market rate, that's means he really is undesirable person.

hopeful
24-12-10, 09:33
She may have already shot herself in the foot by her action. If the story is true, then she may have breached her duty as an agent in not demonstrating her fiduciary duty to her client ie to act in the best interest of the client. Sorry, just informing him of the general prices is not enough to cut it as acting in the best interest of the client.:doh:

So you think she would get sued by the PRC fellow? What are his chances of winning?