It Gets Green Signal to Proceed
In a major relief to the Collective Sale Committee of Katong Park Towers in Arthur Road, the High Court has given nod to the sale of the site.
This comes after some of the owners had objected on the en bloc process including the apportionment method that was decided.
Eldan Law’s Edwin Lee who was representing the Sale Committee informed that during the hearing on Tuesday (Oct 02) the High Court issued an order of sale.
The site was bought by one of the units of Bukit Sembawang Estates for S$345 million in the month of March following a tendering process.
The developers had paid 20% premium on the reserve price.
After an application was submitted with the STB (Strata Titles Board) on 16th of April for the site’s sale, a small group of owners objected.
In mid-July the STB issued a stop order after attempts at mediation failed to yield positive results.
As per one objector the apportionment method was unfair. According to the objector the CSC’s apportionment method had given 90% weightage to valuation, 5% to share value and strata area which translated to the price of their shop unit coming to S$365,000.
This, the objector termed unfair and believe equal weightage should have been given to all the three factors when calculating value for the individual units.
The lawyers who represented the Collective Sale Committee on the other hand argued that the said apportionment method was used as it ensured less variance for premiums across different residential units where valuation was given priority.
In case the three elements were given equal weightage, it would benefit only the shop unit owners and lead to massive losses for the residential unit owners.
Mr Lee informed that the High Court had agreed to the arguments that 90-5-5 method that was used was acceptable as it considered premium over valuation.
He however also cited the case of Meyer Road’s The Albracca where the apportionment method of giving equal weightage to valuation, share value and strata area was considered to be the most unbiased by the court.
He added that the courts would consider premium over valuation in cases where premiums are considered to be fair towards all parties and in such cases the courts would give nod to a sale.
There was another objection by a residential unit owner who felt that having to pay S$197,967 seller stamp duty wasn’t justified but the judge dismissed this argument and said that the same cannot be considered in the case.
It must be mentioned that High Court doesn’t give nod to collective sales where there are unfair practices.
The court usually considers the sale price of the site, the apportionment method used and the relationship between the sellers and the buyers while deciding in these matters.
There are many other en bloc sales that are in the process of knocking the doors of the High Court and this include Cairnhill Mansions and Brookvale Park.
Also, in case of Goodluck Garden the arguments have been heard but the judgement hasn’t been delivered as yet.