SINGAPORE - A sole bid of $20 million for a land parcel in Sentosa Cove seized in a $3 billion money laundering probe was not accepted by OCBC Bank, and the property was withdrawn because it did not meet the reserve price of $27.1 million.

The $20 million bid for the 19,550 sq ft plot in 69 Ocean Drive – formerly owned by Cambodian national Su Baolin before he was arrested with nine other foreigners in the probe – was submitted by a group of four local individuals, according to property consultancy firm Edmund Tie.

The firm was appointed to execute the sale in an open auction held at Amara Singapore hotel in Tanjong Pagar on April 24.

An OCBC spokesperson told The Straits Times: “The outcome of the first sales exercise for 69 Ocean Drive at today’s auction is not unexpected, given the size of the property and current market sentiment.

“There was serious interest expressed by a few people, and conversations are ongoing. We will continue with the process to recover the overdue loans.”

Ten parties, including at least one local developer, had registered to bid in the auction for the plot located at the northern tip of Sentosa Cove sold by OCBC, which is owed over $20 million in loans by Su.

An earlier ST report said Su, who is originally from China, owed the bank about $19.7 million in housing loan and credit card debts. With interest incurred until full payment is made, his debt has exceeded $20 million as at April 15.

Ms Joy Tan, Edmund Tie’s executive director and head of auction and sales, said: “We have to wait for OCBC’s instructions, but the marketing process is still ongoing.

“Interested bidders can still propose offers, and we will consolidate all offers and present them to the bank. It is up to the bank to decide whether to put (the land) up for the next auction, or they may consider, if the price is right, to (seal) the deal.”

Asked about potential risks faced by prospective buyers, Ms Tan said: “For the bidders, they are given the condition of sales with all terms outlined. They have to do their own due diligence.”

Sentosa Cove is the only enclave where foreigners can buy landed property, subject to approval.

A local developer, who did not want to be named, told ST on April 24 that he found the bid of $20 million to be “reasonable”, and had considered building a bungalow or two on the plot.

“But there is only about 80 years left on the lease, so we will not go in to bid. My main concern is the shorter lease. But I still went for the auction because I wanted to see what the market is like for Sentosa Cove land,” the developer said.

Su, 42, who was arrested on Aug 15, 2023, faces 13 charges in total.

It was earlier reported that police seized about $99 million worth of assets in properties, cash, bank accounts and cryptocurrencies in the names of Su and his wife.

The parcel, with an asking price of $27.1 million, or $1,386 per square foot (psf), had housed one of fewer than 10 sea-facing bungalows in Sentosa Cove with a land area exceeding 18,000 sq ft. It has a 99-year leasehold tenure from July 2005, and offers unblocked views of the sea and the Central Business District.

Mr Samuel Eyo, managing director of Lighthouse Property Consultants, noted that the land comprises two plots amalgamated into the 19,550 sq ft parcel, which was sold in March 2021 for about $39.33 million, or $2,012 psf, to Su.

Su had demolished the villa on the site with plans to build a two-storey detached house with a swimming pool before he was arrested.

Mr Eyo noted that “the prospective buyer will have to consider whether to fork out $27.1 million to buy a 20,000 sq ft seafront-facing land with just 80 years left on the lease”.

“Or, for the same price, get a freehold bungalow on the Singapore mainland, even though the plot will be smaller,” he said.

In February, an 8,677 sq ft landed property in Ocean Drive changed hands at $16 million, or $1,844 psf.

Mr Eyo added: “As $27.1 million is the cost of bare land, the buyer will probably have to fork out an additional $10 million to $20 million to build a new bungalow. And the buyer must also make sure he gets a clean title free of encumbrances.”

ST earlier reported that OCBC took legal action to recover the overdue home loan through the sale of the property in August 2023, with the court judgment obtained in OCBC’s favour on Jan 5, 2024.

The Sentosa Cove auction came after DBS Bank put up 13 shophouses for sale to recover loans in the same money laundering probe.

Correction note: An earlier version of this story stated that the $20 million bid was submitted by a group of four local and overseas individuals, and that close to 10 parties had registered to bid in the auction. Edmund Tie has since clarified that the individuals who submitted the bid were all locals and 10 parties had registered to bid in the auction.