Roadblocks for en blocs

By
/ EdgeProp
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August 18, 2018 1:45 PM SGT

The latest property cooling measures have amplified the risks of collective sales, with some owners’ hopes of a windfall hampered by High Court proceedings, while others face the possibility of developers backing out

Kathleen Tan has lived in Brookvale Park for 17 years. “This has been our home since my husband and I got married in 2001, and it’s where our son was born,” says the Singaporean part-time tutor with Nanyang Technological University. “We love the Sunset Way neighbourhood, where we’re surrounded by greenery and nice houses.”
In February this year, the 160-unit, 999-year leasehold Brookvale Park was sold en bloc to a joint venture (JV) between Hoi Hup Realty and Sunway Developments for $530 million. That would translate to gross proceeds of $2.5 million to $4.4 million for each owner.
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Brookvale Park owners are now awaiting the High Court process as owners of five units object to the en bloc sale (Credit: JLL)
Tan, who owns a 1,615 sq ft, threebedroom unit, will therefore receive $2.5 million from the en bloc sale. “We were happy that Brookvale Park was sold en bloc,” says Tan. “We thought the price was fair and, for us, the windfall would definitely help pay for our new place.” Last October, Tan and her husband purchased a terraced house at Merryn Terrace, which is near St Joseph’s Institution, where her son started Secondary 1 this year.

Rise in number of objectors

Owners of five units at Brookvale Park objected to the sale on the grounds of the valuation being too low. After two failed mediation sessions by the Strata Titles Board (STB) in July, a “stop order” was issued, with the case proceeding to High Court for hearing.
Brookvale Park joins a list of en bloc sales awaiting High Court proceedings. It includes The Wilshire, which was sold to a JV between Roxy-Pacific Holdings and the family vehicle of Tong Eng Group for $98.8 million ($1,536 psf per plot ratio) in January; City Towers in Bukit Timah, which was sold en bloc to a unit of CK Hutchison Holdings for $401.9 million ($1,847 psf ppr) in February; and Katong Park Towers on Arthur Road, off Mountbatten Road, which was sold en bloc to Bukit Sembawang Estates for...