It has been a sad end to Thomson View’s fourth attempt to launch for collective sale as the Collective Sale Committee failed to gather the minimum 80% approval from the owners to launch en bloc.
It joins the club of several condos that have failed over the last few months. The 255-unit condo which is located off Upper Thomson Road and in an attempt to encourage owners had risen the price thrice to $938 million but it was able to garner only 76% signatures.
Tan Kin Lian, Chairman of the Collective Sale Committee said that the sale agreement expired on the 24th of September.
The estate had 200 apartment units, 54 townhouses and a single shop unit that covered an area of 540,314 sq ft.
According to Tan who ended his career as NTUC Income’s Chief Executive if the sale had gone through, each apartment owners would have pocketed $2.6 million to $3.7 million while the owners of the townhouses would have received $5.5 million each.
He added that many owners weren’t attracted to the sale despite the promise of a bumper payout.
A resident of the estate Mrs Lai said that she did not feel terribly upset with this failed attempt. She said that she had supported this collective sale as the price promised was attractive.
The lady who has two children and is in her 40s also added that she was happy living here as the property was spacious with 2000 sq ft. area and such kind of space is hard to find anymore.
Mr Tan said the seller’s stamp duty was one of the major factors for resistance among some owners while others weren’t happy about the method of apportionment.
Some of the residents’ love living in Thompson View and don’t want to move out. But for people like Mrs Lai who had been a resident of this place for about two years and was mandated to pay the seller stamp duty but the promised proceeds would have been good enough to pay the duty as well as fund her new home.
According to Mr Tan one of the bones of contentions for the owners who had consented to the sale of the estates would have been the legal costs in case the sale would have gone to the court as it happened during their last failed attempt in 2013.
He said that many owners had learnt their lesson last time when they had to incur huge legal fees in their attempt to sell the property.
It may be recalled that back then the High Court had decided against the $590 million en bloc sale attempt as it had found that the marketing agents HSR International Realtors had tried to bribe four owners in its bid to get their signatures on the sale agreement.
The legal costs for the 2015 owners who had signed the agreement in 2013 nearly touched six figures.
Mr Tan questioned the logic of only the consenting owners to bear the legal fees for such disputes as owners who stay away from signing tend to enjoy a free ride.
Some owners he added often stay away from signing the agreement fearing the legal costs if the case were to reach the doors of the court.
He suggested an idea where by a small fraction of the sale amount (In event of successful Sale) which doesn’t exceed 0.5% should be set aside for the owners who sign the agreement to reward them for the risk they take upon their shoulders initially.