CapitaLand faces $5.1m extension charges for unsold units

10% of combined units at The Interlace and d'Leedon await buyers.

CapitaLand (CAPL) has made little success in attracting buyers for the remaining units at two of its residential projects. As such, UOB KayHian is expecting the firm to see S$5.1m in extension charges in 2H16 from The Interlace (5% unsold) and d'Leedon (5% unsold).

According to the research house, CAPL has rolled out the creative “stay then pay” initiatives for both these projects, which saw decent response.

Moving forward, the management has guided for less-than-sanguine outlook on Singapore.

Management expects the property cooling measures to remain a drag on the market.

Its newly launched 109-unit Victoria Park Villas saw 17 units sold as at end-Oct 16 while 55-unit The Nassim saw another 5 units sold in 3Q16.

Management has opined that office rentals in Singapore will likely remain depressed. The retail portfolio, meanwhile, is expected to provide stable recurring income to cushion domestic headwinds.