Shophouses connected to S$3 billion money-laundering case are now up for sale

SINGAPORE: A total of eight shophouses linked to the suspects in the country’s biggest-ever money laundering case have been put up for sale, The Business Times (BT) said in a report.

Three properties carry a price tag of S$61.1 million, the report said late on Friday (Jan 26). These were bought by Wang Dehai, one of the ten suspects arrested by the police last August in connection to money laundering schemes.

The assets involved in the schemes had been valued at S$2 billion at the time of the arrests. This amount has since grown to more than S$3 billion, with the police seizing additional assets—including properties and vehicles—and issuing warrants of arrest for two more suspects.

The three properties advertised for S$61.1 million are at Stanley Street in Chinatown. BT reports that Aalto Group owns them. This holding company lists an individual identified by the police as a person of interest, Su Fuxiang, as its only director.

The shophouses are marketed by global real estate consultants and agency Knight Frank for a receiver appointed for Aalto Group, BT added. The five other shophouses are allegedly worth S$45 million and were put on the market last month.

In the final three months of 2023, the sales of shophouses decreased in the wake of the billion-dollar money laundering case.

The Straits Times reported earlier in the week that the fourth quarter of 2023 was the lowest for shophouse sales in 13 years, with caveats filed for only 15 transactions. In contrast, 37 were filed in the quarter before.

Also, sales in the fourth quarter of last year only reached $95 million, showing a 70 per cent drop from almost $321 million in the fourth quarter of 2022.

“After the money laundering crackdown, we saw fewer foreign buyers. Owners did not immediately drop their asking prices.

For months, both owners and buyers adopted a wait-and-see approach. But after a long lull period and a notable drop in transaction volumes, some owners are now more open to negotiation,” ST quoted Mr Richard Tan, founder of PropNex Shophouse Elites, as saying.

Last August, authorities seized and froze over S$1 billion in assets, including luxury real estate, vehicles, luxury goods, gold bars, cryptocurrencies, and cars. The 10 suspects—nine men and one woman—are Su Baolin, Su Haijin, Chen Qingyuan, Su Wenqiang, Lin Baoying, Zhang Ruijin, Wang Dehai, Su Jianfeng, Vang Shuiming and Wang Baosen, were arrested by the Commercial Affairs Department.

Last week, the police announced the names of two additional suspects identified in the case: Su Yongcan, 33, and Wang Huoqiang, 29, both of whom are Cambodian nationals who previously held a passport issued by the People’s Republic of China (PRC).

Su and Wang are said to have left the country just before the Police carried out their operations in the money laundering case on Aug 15, 2023. /TISG

Read also: Warrants of arrest issued for 2 more suspects as SG’s biggest money laundering case tops S$3 billion