Goodluck Garden en bloc hits road block

The en bloc sale of Goodluck Garden on Toh Tuck Road, agreed on in March for $610 million, has hit a road block.

This comes after seven minority owners objected on the grounds that information was withheld which would have allowed them to sell the property for a higher price.

Owners of the 210-unit freehold residential development will go to court after the Strata Titles Board (STB) issued a stop order yesterday, in a move that analysts noted may have developers thinking harder about their due diligence on such sales.

It is understood that two rounds of mediation by STB were held this month.

This means the board is unable to approve the en bloc application and the collective sale committee (CSC) will have 14 days to apply to the High Court to seek approval for the sale. The Straits Times understands this is what it will do, and a hearing of the court application could occur in September.

Goodluck Garden was sold to Qingjian Group above the reserve price of $550 million, the fifth largest collective sale this year and the property’s first collective sale attempt.

The price also represented a 12.5 per cent premium over what ST understands was a $542 million valuation at the close of tender.

Objectors to the sale made their grievances known in a blog post yesterday afternoon.

They claimed the CSC and marketing agent Knight Frank had told residents there would be a development charge (DC) for the site, but it turned outthat there would be no such charge. Knight Frank said it was unable to comment.

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