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The fate of the Waterfront View estate in Bedok remains in doubt, with a couple fighting the estate’s collective sale deciding to take their case to the High Court.

Mr Yeo Loo Keng and his wife Cheryl Lim - the only unit owners who fought the sale to the end - insisted they would incur a loss of $106,244, which was part of their CPF principal amount and accrued interest owed to their CPF accounts.

However, the Strata Titles Board (STB) had ruled in a landmark decision on Feb 5 that this was not considered a financial loss, as the CPF Board said the couple will not need to make up the shortfall if the net proceeds of the sale, after repaying the bank loan, are less than the amount they owe the CPF.

The couple said they were appealing to avoid being forced to incur a loss.

While the planned collective sale is scheduled to be completed on May 7, it could be overturned by the High Court if the latter rules in favour of the couple.

The couple bought their 14th-floor, 1,711 sq ft apartment 12 years ago for $515,000. Each of the 583 owners will be paid about $660,000 from the sale, from which they will get around $644,000 after deducting legal fees and stamp duty. Mr Yeo, though, argued that it was not enough.

He said he has to pay off a bank loan of $342,844 plus CPF principal amount and interest of $407,599, which makes a total of $750,443.

It was the first time the STB had to decide if CPF money is considered a financial loss in the sale of residential property.

The couple’s lawyer, Mr Leong Yung Chang of Veritas Law Corporation, said the main thrust of the appeal would be that loss of CPF money should be considered a deductible expense.

He also confirmed this will be the first time the High Court will hear such a case.

‘Although we face the risk of losing, we feel the public needs to know the High Court’s position and if it ratifies STB’s ruling,’ said Mr Yeo.

He also said he felt the laws on collective sales, passed in the 1990s, have ’swung the pendulum too far against the interests of minority members’.

‘There’s a general feeling of a need for greater protection for people like my client who are forced to suffer a loss,’ said Mr Leong.

For the collective sale to be approved, the reserve price has to be met and 80 per cent of Waterfront View’s owners have to agree.

Madam Valerie Ong, a 45-year-old housewife whose estate is currently in the process of a collective sale, told The Straits Times that she sympathised with the couple’s position. She said she believes a ‘policy review’ of collective sales is overdue, especially with the huge increase in such sales in the last few years.

Waterfront View’s sales committee member Kevin Tan said he was surprised at the couple’s decision, but was prepared to ‘fight all the way’.

‘If he wants to up the ante, we have no choice but to respond.’

Another resident, Mr David Govinden, said residents would definitely be upset that the couple are taking the matter further, as ‘we thought the chapter was over’.

Mr Yeo said he had no intention of causing inconvenience to residents but was acting within his rights.

‘I don’t want to regret not appealing. This is the final step we can take,’ he said.

Located in Bedok Reservoir Road, the former HUDC estate was sold for $385 million last May to FCL Peak, a joint venture between Frasers Centrepoint and Far East Organization.

Mr Leong estimates it will take a month for a High Court ruling to be made.

When contacted, both STB and CPF said they could not comment until after the ruling.

Source : Straits Times - 2 Mar 2007