Capitaland is suing the owners of four units of Gillman Heights condominium for breach of contract.
The owners, who belonged to a majority group, had agreed to sell their units in a collective sale agreement with CapitaLand in February last year.
CapitaLand is paying S$548 million for the 607-unit estate and the deal has also received the approval of the Strata Titles Board. But two groups of owners are now contesting the sale.
One group of minority owners has filed an appeal against the sale.
Another group comprising majority owners, which had agreed to the sale, is also having second thoughts.
Last week, this group of majority owners filed an application to the High Court to invalidate the collective sale agreement.
Reports say the issue centres on price, which some owners have been quoted as saying is too low.
Each owner is set to receive between S$890,000 and S$950,000 from the en bloc sale.
In its legal proceedings, CapitaLand is arguing that the sale agreement is binding on all parties that have signed it, especially now that the sale has been approved by the Strata Titles Board.
The suit has been filed by a joint venture firm Ankerite, which is jointly owned by CapitaLand, Hotel Properties Ltd and two private funds. – CNA/ch
Source : Channel NewsAsia – 20 Feb 2008