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Owners of Robin Court and No. 1 Robin Drive are putting their properties up for collective sale for a second time. But this time, their asking price is 40% below their initial expectations.

The indicative price of the combined plots is now S$58 million to S$60 million. No development charge is payable for redeveloping the site.

The prime District 10 parcel at Robin Drive, off Bukit Timah Road, is a few minutes’ walk from the newly-announced Stevens MRT station. It spans more than 40,000 square feet, with a gross plot ratio of up to 1.4.

Credo Real Estate, which is marketing the deal, said the land cost is about S$964 to S$996 per square foot per plot ratio. At this price, the developer is expected to be able to breakeven at about S$1,470 to S$1,500 per square foot.

The new development could accommodate a luxurious residential project with a gross floor area of 62,398 square feet. It could yield 30 apartment units with an average size of 2,000 square feet each. - CNA /ls

Source : Channel NewsAsia - 23 Jul 2008

Majority owners’ last-ditch bid to push through collective sale may bear fruit

AN ELEVENTH-HOUR bid by the owners of Tampines Court to save their collective sale from petering out seems to be paying off.

The deal was in danger of collapsing after the sales committee delayed seeking mandatory Strata Titles Board (STB) approval for the sale.

The STB had scheduled to hear the case only next month, but the sales agreement with Far East Organization and Frasers Centrepoint expires this Friday. The two property giants do not look keen to grant an extension.

As a result, the sales committee last week applied successfully to the High Court to have the STB hear the case earlier.

At yesterday’s hearing, those who objected to the sale had their say, clearing the way for lawyers for majority and minority owners to submit closing statements in writing by Thursday.

The STB had initially set yesterday’s hearing for Aug 7, but that would have killed the $405 million collective sale as it would come after the July 25 deadline.

The deadline fix stemmed from the sales committee’s decision to delay seeking mandatory STB approval for the deal until Jan 7, although all the necessary conditions had been met as early as July 25 last year.

It wanted to wait until the board had ruled on the Gillman Heights sale. Any ruling could have had a bearing on the fate of the Tampines Court deal as both are former Housing and Urban Development Company estates.

The squeeze on dates became potentially disastrous when the STB dismissed an appeal to bring forward the Aug 7 hearing, forcing majority owners to appeal to the High Court last week.

Lawyer N. Sreenivasan, who represents the minority owners, said yesterday the High Court did not explicitly order the STB to rule by Friday. But the board’s deputy president, Mr Alfonso Ang, said it was likely to, in the ’spirit’ of the court’s order.

Sales committee chairman Mathew Lee, who spent the most time on the witness stand yesterday, was grilled on whether he had acted in the owners’ best interests on the issue of the estate’s valuation and the method of distribution of sale proceeds.

The lively session also drew a few laughs, particularly when Senior Counsel Andre Yeap, who represents the majority owners, said Mr Sreenivasan was ‘highly intelligent’, to which the latter interjected: ‘No, I am not.’

Resident Niamh Choo, who also took the stand, told The Straits Times later that one of the minority owners’ biggest concern was that some of the proceeds would be distributed unfairly.

In his closing statement, Mr Yeap said there was insufficient evidence that the sale lacked good faith.

Mr Sreenivasan will make his closing statements to the board today.

Source : Straits Times - 22 Jul 2008

More factors to considerthan just higher bid price :

I REFER to “Time to relook en bloc rules?” (Weekend Today, July 19-20).

On the contrary to what the letter-writer said, there are already enough en bloc rules. Without being privy to certain information, it is incorrect to infer that the Horizon Towers deal was done in bad faith and the proprietary owners did not get the highest price and were “shortchanged” as a result.

In fact, the Judge ruled that the Strata Title Board found the sales committee had made a judgment call to proceed with the offer, and the objectors did not prove the committee had acted in bad faith.

The pertinent question is whether the committee had made the right judgment call.

It was reported that a higher offer was made from a Hong Kong developer, ­Vineyard Holdings. But who is this developer? Does it have the financial means to complete the deal? The objectors were unable to shed any light.

Whether there was a genuine offer on the table, the objectors were also not able to tell.

The additional $10 million is not exactly compelling when apportioned over 210 condo units. It is also not an amount so huge that Horizon Partners could not counter with a higher offer.

Since Horizon Partners’ offer met the reserve price, it is logical and makes good business sense to secure a sure deal with an established buyer. On that basis, the committee made the right judgment call to seal the deal.

It is noted that the unhappiness and manoeuvre came about when it was learned that a neighbouring development was sold for more than double the price.

Our laws should not be changed just because certain factions failed to get their ways.

Source : Today - 21 Jul 2008

High Court orders STB to move hearing ahead of July 25 deadline

THE Tampines Court en-bloc sale was handed a lifeline by the High Court yesterday when it ordered the Strata Titles Board (STB) to bring forward a crucial hearing date.

Just a week ago, the sale had seemed as good as dead when the STB refused to change an Aug 7 hearing date. This meant the hearing would take place after the July 25 expiry date of the sales deal.

And the buyers - Far East Organization and Frasers Centrepoint - had already said they were unlikely to extend the deadline.

But the court yesterday granted an appeal by the majority owners. This means the STB must now hear remaining objections to the sale on Monday, four days before the deal expires.

Even with the new hearing date, STB registrar Bryan Chew said there was no guarantee a decision will be made by July 25.

‘(It) depends on how long the witnesses take on the stand,’ he said.

Thereafter, lawyers have to make their submissions and the board has to deliberate.

Senior counsel Michael Hwang, who was acting for the majority owners, told The Straits Times that the High Court application was made on two grounds.

First, that the hearing was set for a date beyond the six- month life of the specific board constituted to hear the estate’s sale.

The owners also contended that it was wrong for STB to fix that date when it knew the sales agreement would expire on July 25.

Lawyer N. Sreenivasan argued for the minority owners and said that the STB was not obliged to complete a sale by a date set by the sellers and buyers.

The estate’s deadline squeeze stemmed from a sales committee decision to delay seeking STB approval for the deal until the board had ruled on the Gillman Heights sale.

The decision on Gillman Heights could have had a bearing on the fate of the Tampines Court deal as both were former HUDC estates.

The Tampines Court committee eventually applied for sale approval on Jan 7, although all the necessary conditions had been met as early as July 25 last year.

Meanwhile, the sale has caused much tension and division in the estate.

‘The whole en-bloc process has been dragging for too long and is upsetting residents,’ said owner Mansur Husain.

Majority owners feel the sale price - about $700,000 for each unit - is above what the homes could get on the open market. But minority owners believe the amount is too low, given that private home prices in Tampines have shot up in the last year.

An independent analyst, Savills’ director of marketing and business development Ku Swee Yong, said fair value is likely from $500,000 to $700,000.

Some homes can command premiums based on individual attributes, he said. Comparing prices of Tampines Court to those of new condos in the area is ‘not too accurate’ as the estate does not have comparable facilities, he pointed out.

Source : Straits Times - 19 Jul 2008

Letter from Ong Cher Meng

I REFER to “Landmark ruling” (July 18).

The judge has ruled that the fact that a higher offer was received for the en bloc sale of Horizon Towers is not within the purview of the Strata Title Board (STB); neither are any allegations of less-than-stellar conduct among the parties.

And that if the STB has to hear such matters, it would never get its job done.

So, if I get an offer for my home of say, $7 million and the en bloc sales committee of my condo gets an offer of $5 million, would my recourse be to sue in the courts while the STB can rule in favour of the $5-million sale and proceed? This defies logic and good business sense.

Moreover, if the STB is not equipped to handle matters pertinent to good faith, the highest sale price, the conduct of sales committee, et cetera, it is time that the approval of en bloc sales be given to a specialised legal tribunal which is equipped to do so.

Further, if the Land Titles (Strata) Act does not provide sufficient coverage to protect the rights of a subsidiaryproprietor who expects a fair and holistic hearing of their grievances, it is time for all en bloc sales to be held inabatement until such matters can be seriously addressed.

Horizon Towers is a mega test case for en bloc sales and it is time to take stock of our laws.

Source : Weekend Today - 19 Jul 2008