Tag Archives: Collective Sale

Tussle over privatisation of Lagoon View

The court has thrown out a case against an owner at the Lagoon View condo.

District Judge Seah Chi-Ling has dismissed the Lagoon View Owners Association’s (LVOA) case to compel an owner to contribute to a privatisation levy, reported The Straits Times.

The group had sued Mr S.V. Chandran, 80, for refusing to fork out the $35,500 sought from each homeowner at Lagoon View, a condominium in Marine Parade comprising five residential blocks.

The ruling is a setback for the association, as all the other owners have paid their fees.

In total, the LVOA intended to collect $16 million to purchase the estate’s common areas from its owner, the Ministry of Finance (MOF).

Upon completion of the deal, the association would have been able to proceed with the privatisation of Lagoon View, enabling it to redevelop the 99-year leasehold condominium, add new amenities, or put it up for collective sale.

In its argument, the LVOA insisted that the majority of owners were in favour of buying the common-area land during a special general meeting (SGM) in May 2010. In the following month, at least 80 percent of the members agreed to pay the levy before the deadline in December 2010.

After that, the association initiated the privatisation exercise with the Singapore Land Authority (SLA), which was completed in August 2011.

Mr Chandran, a retired police officer, countered that the LVOA failed to obtain the 80 percent threshold, as stated in its own resolution, within the deadline, which he claimed was October 2010, or two months before the date stated by the association.

According to the resolution, if the LVOA does not secure enough votes by the deadline, it is mandated to hold another SGM, but it did not do so.

Advertisements

Balestier Point may go en bloc

Balestier Point resize

Photo: balestier12011.blogspot.com

Balestier Point (pictured), a mixed-use freehold development, may be put up for collective sale for approximately $250 million to $350 million, or around $1,337 to $1,872 per sq ft per plot ratio (psf ppr), reported The Straits Times.

The property’s owners appointed an eight-member collective sale committee in October 2015 and ERA Realty as the marketing agent in January this year. However, they have yet to set the date for an extraordinary general meeting to obtain the owners’ approval.

Completed in 1986, the 62,315 sq ft property comprises an 18-storey residential block and a two-storey retail podium with basement. The site is zoned commercial and residential under the 2014 Master Plan, with a building height limit of 30 to 36 storeys and a plot ratio of 3.0.

Owners may be motivated to sell considering the above-market premium for the said property. Last month, a 1,119 sq ft apartment located on the ninth floor was sold for around $1 million or $900 psf.

They are also banking on the fact that the Balestier area has been undergoing rejuvenation, with the completion of the integrated hotel-park complex comprising Zhongsan Park, Zhongsan Mall and the Days and Ramada hotels in 2014.

“It is within the Novena medical hub area and we are exploring the possibility of applying for change of use, subject to approval by the authorities,” said ERA Realty agent Stanley Koo.

Property consultancy CBRE noted that the most recent collective sale within the area was Skysuites 17, formerly Diamond Tower, for around $49.6 million or $582 psf ppr in April 2010.

“Due to the cutback on residential land offered through the Government Land Sales programme, developers may want to look at collective sales as an alternative source of land. At the end of the day, the most important thing is to bridge sellers’ and buyers’ expectations,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia.