NUS played critical role in En Bloc sale

I REFER to Mr Nicholas Kong’s response on behalf of the National University of Singapore (’NUS: No conflict of interest in property deal’, April 2). We minority owners - who have no wish to hawk our homes - of Gillman Heights in which estate NUS, by virtue of its 50 per cent ownership (303 units out of a total of 607), is the Goliath, wish to share our experience in the collective sale of Gillman Heights and, in particular, the critical role played by NUS. 
 
The owners were relieved by NUS’ reassurance at an owners’ meeting on Feb 18, 2006 that it would refrain from casting its vote unless the ‘majority’ of individual owners decided to sell. We assumed, in the case of a collective sale, majority must be at least 80 per cent, or 90 per cent, depending on the legal age of the estate, but definitely not 51 per cent. 
 
Just over 32 per cent (or around 65 per cent of owners of the 304 units) chose to sell. The owners assumed that that should put paid to the collective sale. However, the sales committee left us in suspense. In June 2006, it announced that NUS had decided to join the sellers. With NUS’ 50 per cent, the total percentage jumped to 82.7 per cent. 
 
In May last year, we learnt that Hotel Properties Ltd and two private funds had taken up stakes in the buyer of Gillman Heights, Ankerite, a subsidiary of CapitaLand. CapitaLand would retain a 50 per cent ownership of Ankerite. However, owners of the two funds were not identified. 
 
Only during the High Court appeal in March this year was it revealed that NUS owns one of the private funds. It has a 16 per cent stake in Ankerite. The Strata Titles Board did not have this material information during its hearing of objections in September and October last year and before it issued its ruling in December. Thus, it could not be aware of NUS’ direct financial interest in Ankerite at earlier mediation sessions held in June and July last year. 
 
Mr Kong asserts: ‘The financial interests of the university are aligned with those of the Gillman Heights owners seeking the best sale price for their units.’ In 2006, after the individual owners had made their choice and before the June announcement that NUS would sell, much was going on while the owners were kept in the dark. It belatedly come to light that the delays had much to do with NUS’ ’suggestions’ that the reserve price be slashed by a hefty 20 per cent (a letter to this effect, dated May 16, 2006, was sent by NUS to the chairman of the Gillman Heights sales committee). Was that NUS’ idea of ‘aligning’ its financial interests with those of the owners? 
 
Lam Seng Ming and three other owners

Some owners fight on for their homes

22 minority owners in bid to overturn sale; they simply don’t want to move 
 
A GROUP of owners at Gillman Heights Condominium is fighting hard to stop the $548 million sale of the property, despite reports that hint at a market slowdown. 
 
The deal was struck when the market was in full flight in February last year - but now, such deals to sell en bloc have dried up. 
 
The 22 minority owners are trying to overturn the collective sale of their estate to CapitaLand, Hotel Properties (HPL) and two private funds. 
 
They are appealing on various grounds, including the way the sale process was conducted, how the former HUDC estate’s age was calculated and how the price was achieved. 
 
Three other groups, representing 18 owners, are also in court. One is made up of eight owners from four units who want to know if a supplementary deal to extend the original collective sale agreement is valid. They face legal action from the buyers for alleged breach of contract. 
 
The Strata Titles Board (STB) approved the sale of the 607-unit, 99-year leasehold estate late last year. The sale was inked in February last year at $363 per sq ft (psf) of potential gross floor area. 
 
Owners stand to reap $870,000 to $950,000 per unit - then 40 to 55 per cent above the levels they would have got in an individual sale.

CapitaLand, HPL sue eight owners

CapitaLand and Hotel Properties, which have agreed to buy the 607-unit Gillman Heights Condominium in Alexandra Road for $548 million, are claiming the eight home owners are breaching their contractual obligations. 
 
The eight owners, who together own four units, had filed an application to the High Court last Monday. They want to know if a supplementary deal to the original collective sale agreement is valid. 
 
The eight owners being sued said they, and some others, signed the first deal but not the supplementary one.

Another bid to stop sale

A GROUP of minority owners at the Gillman Heights condominium is making another bid to stop the $548 million collective sale of the huge estate in Alexandra Road. 
 
They filed a High Court appeal yesterday against last month’s decision by the Strata Titles Board (STB) to approve the sale to CapitaLand and other parties. 
 
Among other things, the 22 disgruntled owners are appealing on the grounds that the sale of Gillman Heights should require consent from 90 per cent of owners, rather than the usual 80 per cent.

STB nod for en bloc sale

The Strata Titles Board (STB) had given the green light for the en bloc sale of Gillman Heights Condominium.  
 
Gillman Heights was sold in February for $548 million, or $19 million above the property’s reserve price, to a joint venture formed by CapitaLand, HPL subsidiary HPL Orchard Place Pte Ltd, and two private funds. 
 
Gillman Heights, on Alexandra Road, covers an area of 836,432 square feet and is a 99-year leasehold site. It has a 2.1 plot ratio. 
 
CapitaLand plans to turn the site into a distinctive residential landmark, with about 1,200 homes.