Win-Win Situation for Both Parties
There is finally some good news for the owners of Cairnhill Mansions. A settlement has been arrived at for the S$362 million en bloc sale and the owner who had objected to the en bloc attempt is finally set to receive an additional S$867,004.79.
As per an order issued by the High Court on Thursday (Oct 04), rest of the owners will have to equally bear the above-mentioned amount.
Justice Quentin Loh mentioned in the court that mediation between the Collective Sale Committee and the objector Djie Tjoe Nio which started on Tuesday lasted into the wee hours before it reached a positive conclusion.
The S$867,004.79 additional payment is 0.25% of the total sale proceeds that the other 60 owners are slated to receive. This means that Mrs Nio who was expected to pocket S$15.2 million as per initial estimates would now receive near about S$16 million for her unit that covers 792 sq m area.
As for the other owners who were expected to receive S$5.77 million each would have to part away with S$14,400 each for their 188 sq m units.
There were more than 20 people during the court hearing which included two among the three plaintiffs as well as the members of the Cairnhill Mansions’ Collective Sale Committee.
Mrs Nio, the defendant along with her family members was also present. Justice Quentin Loh ruled that he was convinced that the payment in this case was “just and equitable”. Charles Ho and Sam Chong Keen were the plaintiffs in this case.
As per the law the Court has the right to increase proceeds in the sale for an objector if it is convinced that such an increase would make the receivable just and equitable.
However, in such cases the sum that is paid out from the sale proceeds cannot increase 0.25% or an amount of S$2,000 for individual unit owners whichever is higher.
It may be recalled that in the recent case concerning Shunfu Ville an objector had addressed her objections with the Strata Titles Board (STB).
She had stated to have purchased her unit at a premium price and also had spent large sums of money during renovation. The Collective Sale Committee had to relent and increased the sale proceeds, which was approved by the judge.
Justice Loh during the hearing of the Cairnhill Mansions case said that the sellers have to agree to the High Court order mandating the increase of the proceeds to the objecting owners if it finds them to be just and equitable.
The sale agreement was approved during the EGM which was approved by the subsidiary proprietors.
The sale agreement also mandates the Sale Committee to consent to the any order issued by the High Court in case of such disputes.
Low Keng Huat had acquired the property located at 69 Cairnhill Road in February this year for S$362 million. Interestingly this was Cairnhill Mansions‘ fifth attempt at en bloc sale.
In related development the Civil Engineering and Property Development Company also acquired 67 Cairnhill Road property for a sum of S$100 million.
The penthouse owner objected to the sale stating that the valuation method was inappropriate and this was unfair to her.
She had submitted her objection with the STB which issued a stop order after failed attempts at mediation and the Collective Sale Committee then approached the High Court to seek relief.
Justice Loh said in his ruling that the penthouse owner’s case didn’t relate to a financial loss but it was meant to address the discrepancies that arise during collective sales.
Dentons Rodyk & Davidson’s Ling Tien Wah and Lee Liat Yeang represented the CSC in the case while the penthouse owner was represented by TSMP Law Corporation’s Tan and Ong Pei Ching
Katong Park Towers and The Wilshire are other properties that have received a go-ahead for sale after approaching the High Court in recent weeks.