Complete Property Market Updates of Singapore

June 11, 2008

Regent Garden owners file appeal despite sale completion

Filed under: General,Legal Ground — Propertymarketupdates @ 2:51 am

ONE of Singapore’s most unusual collective sale disputes, over Regent Garden, is now headed for the Court of Appeal even though the sale was completed yesterday.

Last month, the High Court ruled that the $34 million sale of the West Coast Road condo to Allgreen Properties must go ahead.

But now, the owners of 23 out of the 31 Regent Garden apartments have filed papers to take the case to Singapore’s highest court – the Court of Appeal.

They cannot overturn the sale now that it has been completed, but they want the court to rule on certain ‘burning’ questions, and they might seek remedies if they succeed.

They say other people involved in collective sales might be interested in getting answers to these questions.

These majority owners, including owners of two units who did not join the appeal, had earlier sought to overturn the $34 million deal, claiming among other things that their condo had been undervalued.

In a statement, the sale committee said: ‘These questions include whether, in a situation where a minority of owners object to a proposed collective sale, an intending buyer is permitted to go behind the backs of the majority owners and reach a side deal with the minority owners.’

A spokesman for the majority owners said the ’side deal’ referred to the fact that six of the owners who had opposed the sale had received an extra $2 million, divided between them, in return for withdrawing their objections.

Those appealing also want to know whether these minority owners are entitled to retain the extra payments without sharing the sum with the majority owners in accordance with the distribution arrangements in the sale agreement.

Yesterday, all the owners at Regent Garden completed their sale, which means they would each have pocketed a large part of their proceeds, which range from slightly over $700,000 to $1.4 million.

The remaining 5 per cent of their proceeds is due to be released to them when they vacate their homes.

In a statement released yesterday evening, Allgreen described the appeal as ‘curious’, given that the sale and purchase of Regent Garden had been completed earlier yesterday.

‘Allgreen intends to vigorously contest the appeal, and all claims and allegations made by the appellants,’ it said.

Source : Straits Times – 17 May 2008

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