Brookvale Park en bloc bid latest to be headed to court
Source: Business Times
Date: 02 Aug 2018
Author: Yunita Ong
The collective sale of Brookvale Park in Sunset Way, issued a "stop" order by the Strata Titles Board (STB) on Wednesday, is likely headed to court.
This follows the failure of STB's mediation on June 12 and July 24 to get seven owners to withdraw their objections to the sale of the development for S$530 million.
Wednesday's development means the collective sale committee now has two weeks to apply to the High Court to obtain a sale order.
The 160-unit condo had found a buyer in a joint-venture between Hoi Hup Realty and Sunway Developments in February this year through private treaty.
Sources told The Business Times that the dissenting owners disagree with an independent valuation report by Savills, which valued Brookvale Park at S$530 million; their view is that the report was wrong to compare the 999-year leasehold condo to sites with 99-year leases.
These objectors are believed to have paid for a separate valuation report, which valued Brookvale Park 10 per cent higher, upon comparing it with freehold or 999-year properties.
The lawyers for the collective sale committee at Donaldson & Burkinshaw, and marketing agent JLL, declined comment.
The collective sale committee is required to procure from an independent valuer a report on the development at the close of each tender exercise. This valuation report is opened at the close of tender, and ensures that the selling price is at fair market value, experts told BT.
Other collective sale efforts currently awaiting High Court proceedings following "stop" orders as a result of owners refusing to withdraw their objections following STB mediation include those of Goodluck Garden, The Wilshire and Cairnhill Mansions.
Last Friday, The Albracca in Meyer Road was granted a sales order following High Court proceedings in June, after a lone objector dissented.
Source: Business Times © Singapore Press Holdings Ltd. Permission required for reproduction.