The collective sale of Brookvale Park located at Sunset Way received a major jolt as the Strata Titles Board issued a ‘Stop Order’ on Wednesday after seven owners objected to the same of the site.
STB had tried to mediate between the two parties on 12th June and 24th July but it failed to yield any positive results. Considering the impasse, the matter is most likely headed for the High Court.
The 160-unit condominium was sold for S$530 million earlier in February in a private treaty deal. The site was picked up by a joint venture comprising Sunway Developments and Hoi Hup Realty.
Sources aware of the deal have said that the dissenting owners have raised their objection to the valuation of the property that was carried by Savills.
They have objected to this property that has a 999-year lease being benchmarked with 99-year leasehold sites during the valuation process. They had even hired the services of an independent valuator whose price was 10% higher compared to the one used during the sale.
Donaldson & Burkinshaw the lawyers for Brookvale Park’s Collective Sales Committee as well as their marketing agent JLL have declined to comment on the issue.
Reality experts said that as per the norms the Collective Sales Committee has to obtain a valuation report from an independent valuator during the close of tendering exercise.
This report is opened during the close of the tender and is meant to ensure that the site has been sold at fair market value.
There are several en bloc sales that have been issued a Stop Order by the STB and have approached the High court and awaiting order. In all cases that include The Wilshire, Goodluck Garden and Cairnhill Mansions one of disgruntled party(s) have refused to withdraw objections despite multiple rounds of mediation.
In last week’s developments the High Court had granted sales order for The Albracca off Meyer Road rejecting the objections of the dissenter.