Asia
SINGAPORE: Asia’s "Fort Knox,” a private, maximum-security vault in Singapore, is for sale.
Le Freeport, a multi storey repository for fine art, precious gems and even JPMorgan Chase & Co.’s stash of gold, has been seeking a buyer since as far back as 2017, so far without success, according to people familiar with the matter.
Owner Yves Bouvier, a Swiss art dealer, has been embroiled in a five-year legal brawl with a Russian billionaire and has been selling assets.
Opened in 2010 at a cost of about S$100 million ($74 million), the vault sits on a large tract of government land with direct access to the runways of Changi Airport.
Formerly known as the Singapore Freeport, the building was heralded as part of the city state’s effort to boost its wealth management industry and become a regional hub for luxury collectibles and bullion trading. For a while, that worked.
Bouvier’s dispute with billionaire Dmitry Rybolovlev "brought some unwanted attention to the facility, but overall it remained the focal point of the gold industry in Singapore, both for institutional and for individual clients,” said Joshua Rotbart, who runs a Hong Kong-based logistics firm specialising in precious metals and has used the vault to store clients’ assets since 2010.
The climate started to change a few years ago when China’s clampdown on luxury spending and an economic slowdown in the region curbed demand for high-value items, while an exodus by many banks from their physical commodity business from 2014 reduced the need for bullion storage.
Losing Money
The venture has lost money for about a decade. It reported accumulated losses of S$18.4 million by the end of last year, according to filings to Singapore’s Accounting and Corporate Regulatory Authority.
Le Freeport Chief Executive Officer Lincoln Ng recently told at least one tenant that the facility is still for sale, but that its owner hasn’t found a buyer, according to one of the people.
In an emailed response to questions about Le Freeport sent via a spokesman, Bouvier declined to comment on whether the business was for sale. He said the "attacks by Mr. Rybolovlev against me in various courts and in the media have had a very negative effect on my business operations worldwide, including on the FreePort in Singapore. Despite this, over the past decade, our vision for the FreePort in Singapore has been proven to be a great success.”
CEO Ng also declined to comment on whether Le Freeport is seeking a buyer.
The operation has cut rental rates to entice new tenants, said two people familiar with the matter. Anchor tenant Christie’s International, which took the entire top floor when the building opened, pulled out last year.
The lobby of Le Freeport features a monumental site-specific sculpture by Ron Arad, La Cage Sans Frontière.
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