The en bloc sale of Gilstead Court in Newton may not proceed as five owners have filed an objection with the Strata Titles Board (STB).
The freehold condominium was sold for S$150.2 million to Tuan Sing Holdings on 17 June, after 43 owners consented to the sale, enough to achieve the 80 percent requirement for the deal, media reports stated.
However, the STB is yet to approve the sale. If the board can’t find a solution to clear it within 60 days, a ‘stop order’ may be issued to block the transaction.
The five minority owners have not signed the collective sale agreement (CSA) as there were clauses that would penalise them financially. It states that sellers who consented will have to put S$2,000 into a common fund to be used in the sale effort.
But those who fail to consent by the tender’s closing date will have to contribute twice the amount, to be withheld from the net proceeds of the sale and shared equally among all consenting sellers. They were also against a clause that requires all other costs related to approval proceedings before the board to be withheld from their share of the net sale proceeds.
It was reported that each non-consenting owner would need to pay S$27,000 accounting for all the extra charges outlined in the clauses.
The collective sale effort was led by former Supreme Court judge Mr Warren Khoo, who is also the executive committee’s secretary. It is believed Mr Khoo drafted the terms and conditions of the tender and collective sale agreement, but he declined to comment due to the on-going proceedings.
Source – PropGuru – 31 Jul 2013