BT : STB rejects Horizon en bloc sale - 4 Aug 07
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Dan @ 94 777 977
Aug 7, 2007, 7:46:36 PM8/7/07
to News - En Bloc
Published August 4, 2007
STB rejects Horizon en bloc sale
Without going into details, the board says that statutory requirements had
not been met
By MICHELLE QUAH
(SINGAPORE) Jubilant minority owners of Horizon Towers hugged and
congratulated one another in court yesterday after the Strata Titles Board
(STB) threw out the en bloc sale of the Leonie hill property on a
technicality.
'While some have made the issue out to be one about money, to some others
it's more than that - my clients are now very happy that they can keep their
homes.'
- Philip Fong of Harry Elias
'While some have made the issue out to be one about money, to some others
it's more than that - my clients are now very happy that they can keep their
homes,' said Philip Fong of Harry Elias Partnership, who represented a group
of minorities.
But not everyone is pleased. The buyers of Horizon Towers - Hotel Properties
Limited (HPL), Morgan Stanley Real Estate and Qatar Investment Authority -
are considering their next move, which could include legal action against
the sellers and the sales committee of Horizon Towers.
HPL said last night that it is 'considering STB's decision and reserves all
its rights, including its rights against the subsidiary proprietors of the
property who signed the collective sale agreement and the sales committee of
the property'. It said that it would make further announcements if and when
there are material developments.
HPL was represented by Senior Counsel K Shanmugam and William Ong of Allen &
Gledhill.
HPL's stock fell 20 cents to close at $4.68 yesterday.
STB's rejection of the sale was unexpected - as was its brief, two-line
judgment delivered after lunch yesterday.
Lawyers for the parties, who had spent a week putting their arguments to the
board, told BT that they were taken aback when STB announced abruptly that
it had decided to reject the application for a collective sale order because
'statutory requirements' had not been met.
STB did not say what these requirements were. And attempts by BT to contact
STB and the sellers' representative, Senior Counsel Jimmy Yim of Drew &
Napier, were unsuccessful.
But BT understands that the application for a collective sale order may have
been rejected because insufficient notices were posted and some documents
were not filed.
STB's decision could have been prompted by arguments put by Senior Counsel
Michael Hwang, representing a minority owner.
Mr Hwang said that his client objected to the collective sale because the
application for the sale order did not comply with provisions in the Land
Titles (Strata) Act, which governs collective sales in Singapore.
Legally, if an application to STB does not comply with requirements laid out
in the Act, the board does not have the jurisdiction to grant an order, even
if there are no objectors.
Some 84 per cent of Horizon Towers owners backed the collective sale - more
than the 80 per cent requirement - but STB's approval was still needed for
the deal to go through.
STB's decision yesterday to dismiss the application means that the en bloc
sale of the property is effectively off. While the sellers have the right to
appeal against the board's decision, the lengthy process involved means that
the deal is unlikely to be sealed by the Aug 11 deadline for the sale.
This could now pave the way for Horizon Towers to be sold at a higher price,
thanks to the recent property boom.
The two-block development was pledged to be sold en bloc for $500 million in
February. The price reflects a unit land price of $810 to $820 per square
foot per plot ration (psf ppr), including a premium to top up the lease to
99 years from the remaining term of about 71 years.
If later collective sales are anything to go by, Horizon Towers could fetch
a higher price. The development next door, The Grangeford, was pledged for
sale in June to Overseas Union Enterprise for $625 million or about $1,820
psf ppr, including a premium to top up the lease.
That is the highest collective sale price paid for a 99-year leasehold
property on a psf basis - and part of the reason for the Horizon Towers
saga.
Horizon Towers' majority owners, after signing off on the deal, became
unhappy with the significantly lower price they were to receive.
STB rejects Horizon en bloc sale
Without going into details, the board says that statutory requirements had
not been met
By MICHELLE QUAH
(SINGAPORE) Jubilant minority owners of Horizon Towers hugged and
congratulated one another in court yesterday after the Strata Titles Board
(STB) threw out the en bloc sale of the Leonie hill property on a
technicality.
'While some have made the issue out to be one about money, to some others
it's more than that - my clients are now very happy that they can keep their
homes.'
- Philip Fong of Harry Elias
'While some have made the issue out to be one about money, to some others
it's more than that - my clients are now very happy that they can keep their
homes,' said Philip Fong of Harry Elias Partnership, who represented a group
of minorities.
But not everyone is pleased. The buyers of Horizon Towers - Hotel Properties
Limited (HPL), Morgan Stanley Real Estate and Qatar Investment Authority -
are considering their next move, which could include legal action against
the sellers and the sales committee of Horizon Towers.
HPL said last night that it is 'considering STB's decision and reserves all
its rights, including its rights against the subsidiary proprietors of the
property who signed the collective sale agreement and the sales committee of
the property'. It said that it would make further announcements if and when
there are material developments.
HPL was represented by Senior Counsel K Shanmugam and William Ong of Allen &
Gledhill.
HPL's stock fell 20 cents to close at $4.68 yesterday.
STB's rejection of the sale was unexpected - as was its brief, two-line
judgment delivered after lunch yesterday.
Lawyers for the parties, who had spent a week putting their arguments to the
board, told BT that they were taken aback when STB announced abruptly that
it had decided to reject the application for a collective sale order because
'statutory requirements' had not been met.
STB did not say what these requirements were. And attempts by BT to contact
STB and the sellers' representative, Senior Counsel Jimmy Yim of Drew &
Napier, were unsuccessful.
But BT understands that the application for a collective sale order may have
been rejected because insufficient notices were posted and some documents
were not filed.
STB's decision could have been prompted by arguments put by Senior Counsel
Michael Hwang, representing a minority owner.
Mr Hwang said that his client objected to the collective sale because the
application for the sale order did not comply with provisions in the Land
Titles (Strata) Act, which governs collective sales in Singapore.
Legally, if an application to STB does not comply with requirements laid out
in the Act, the board does not have the jurisdiction to grant an order, even
if there are no objectors.
Some 84 per cent of Horizon Towers owners backed the collective sale - more
than the 80 per cent requirement - but STB's approval was still needed for
the deal to go through.
STB's decision yesterday to dismiss the application means that the en bloc
sale of the property is effectively off. While the sellers have the right to
appeal against the board's decision, the lengthy process involved means that
the deal is unlikely to be sealed by the Aug 11 deadline for the sale.
This could now pave the way for Horizon Towers to be sold at a higher price,
thanks to the recent property boom.
The two-block development was pledged to be sold en bloc for $500 million in
February. The price reflects a unit land price of $810 to $820 per square
foot per plot ration (psf ppr), including a premium to top up the lease to
99 years from the remaining term of about 71 years.
If later collective sales are anything to go by, Horizon Towers could fetch
a higher price. The development next door, The Grangeford, was pledged for
sale in June to Overseas Union Enterprise for $625 million or about $1,820
psf ppr, including a premium to top up the lease.
That is the highest collective sale price paid for a 99-year leasehold
property on a psf basis - and part of the reason for the Horizon Towers
saga.
Horizon Towers' majority owners, after signing off on the deal, became
unhappy with the significantly lower price they were to receive.
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