UOB cracks down on Lippo Group, seven others on back of massive Sentosa loan default

The loans are worth over $181m.

UOB is reported to be suing a subsidiary of Lippo Group along with seven other debtors over loan defaults on 38 Sentosa condominium units.

According to Maybank Kim Eng, the borrowers have over $181m in housing loans for the purchase of 38 condominium units at the Marina Collection in Sentosa. 37 out of the 38 loans that UOB financed have defaulted.

UOB claimed that it was not informed of the 22-34% discounts offered for the units and that the buyers had
secured inflated home loans from the bank.

“We understand from management that these loans were already classified as NPLs in 2Q-3Q14. Cross-checks with disclosed financials indicate a net increase of SGD169m in UOB’s housing NPLs during these two periods. Management does not expect more to be recognised. Some specific provisions have been made and not much more is expected. This is because the loans have LTVs of 75%, based on current market valuations. No unit has been auctioned off,” stated Maybank Kim Eng.