Thomson View sale hits a roadblock

The eye-popping S$590 million collective sale of Thomson View Condominium faces opposition from 13 of its owners who claim the block is undervalued, The Straits Times reported.

As a result, the Strata Titles Board has issued a stop order that takes effect on 14 January as three rounds of mediation for the condo have been unsuccessful.

The main issue is reportedly the sale price. Those objecting feel they should receive more from the deal, noting that the nearby Upper Thomson MRT station, part of the upcoming Thomson Line, should boost the sale price.

The majority owners of the 255-unit property will have to make an application to the High Court for further adjudication.

Meanwhile, the stop order raises concerns that the sale could lead to a drawn out legal battle. According to experts, large-size developments usually face more objections.

“With more owners, there are likely to be more opinions and more people raising concerns, even if nothing might be wrong with the sale,” said a property lawyer.

“We haven’t seen as many stop orders recently because there haven’t been as many collective sales in the past year as compared with the en-bloc boom in 2006 and 2007.”

Thomson View was acquired by Wee Hur Development and Lucrum Capital for S$712 psf ppr in September last year, making it one of the biggest collective sales in recent years. This would give homeowners gross proceeds of S$1.62 million to S$3.59 million, according to earlier reports.

Meanwhile, Lucrum Capital remains “committed to the obligations of the contract”, said Director David Batchelor, while not providing specific details on the issue.

Source : PropertyGuru – 7 Jan 2013

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