Gillman Heights sale finally completed

http://www.straitstimes.com/Prime%2B...ry_377529.html

May 16, 2009 Saturday

Last-minute hitch threatens sale of Gillman Heights

Buyers raised issues relating to condo's management fund

By Jessica Cheam


THE troubled $548 million Gillman Heights collective sale that was due to be settled yesterday was stalled by a last-minute hitch.

The sale, which has dragged on for two controversy-wracked years, was supposed to have been signed off by last night but the owners' lawyers told The Straits Times that the buyers did not complete the deal.

The sale - first inked in early 2007 - was thought to be a done deal in February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the transaction.

The buyers - a group called Ankerite and led by property giant CapitaLand - raised some issues out of the blue on April 30 relating to routine funds held by the condominium's management.

Now, some owners at the 607-unit estate in Alexandra Road fear that the buyers have got cold feet and are using the funds issue to back out.

Earlier reports indicated that owners stood to receive between $870,000 and $950,000 for their units.

The sale - first inked in early 2007 - was thought to be a done deal in February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the transaction.

But Ankerite's lawyers Rajah and Tann wrote to the sales committee on April 30 about money left in the management corporation's (MCST) management fund. These funds go to the buyers on completion of the sale.

Rajah and Tann wanted $750,000 transferred back into the management fund from the sinking fund and the move approved by residents at an extraordinary general meeting (EGM) before the completion date.

An MCST member who declined to be named said it was 'ridiculous' to request an EGM at such short notice. Residents are usually notified weeks ahead.

He also noted that Rajah and Tann did not raise the issues until April 30 - just two weeks before the May 15 completion date and two months after the appeals court gave the green light.

Ankerite's April 30 letter also raised another contentious point - a separate on-going suit by a local contractor against the MCST.

The MCST had set aside almost $700,000 in the management fund to settle the case but Rajah and Tann requested that $2.3 million be allocated.

The MCST has since settled the suit for around $400,000. This meant it had no need to allocate the $2.3 million but it did transfer $750,000 into the management fund. This was done so that there would be 'no excuses' for the buyers not to complete the sale, said the MCST member.

Law firm Lee and Lee, which is acting for the sales committee, notified Rajah and Tann in a letter seen by The Straits Times that the issues raised had been resolved even though there was 'no legal basis to claim the disputed sums'.

It also warned against delaying or deferring completing the sale of the 99-year leasehold estate.

A CapitaLand spokesman confirmed yesterday that during the 'due diligence process', it had 'raised queries relating to a number of issues'. 'With the view to...the completion of the acquisition soon, CapitaLand has been in constant discussion with the sales committee.'

Ankerite initially comprised CapitaLand, Hotel Properties and two private funds, but CapitaLand will buy up the 10 per cent holding of one private fund for $21.7 million. This will make Ankerite an indirect unit of CapitaLand.

Resident G. Kaur said some neighbours were anxious to see the deal done as they had committed to other properties, 'but for some residents...it means that they can get to enjoy living in their homes a while longer than expected', she added.

[email protected]

It is a sure buy. At less than 400psf at Alexandra, it is stupid not to complete the purchase.

scare scare the sellers a bit mah ~ ;)

Quote:

---

Originally Posted by august

scare scare the sellers a bit mah ~ ;)

---

One week of interest for a few hundred millions is close to one hundred thousands leh ... guess this is the real reason, intially want to drag for 1 month but sellers go to the press so the cheques will arrive 5.30pm on Friday loh

http://www.straitstimes.com/Prime%2B...ry_378185.html

May 18, 2009 Monday

Gillman Heights en-bloc deal is on

By Jessica Cheam


GILLMAN Heights owners can heave a sigh of relief now that the estate's buyers Ankerite have confirmed that the group will go ahead with the purchase of the development.

Property giant CapitaLand, majority shareholder of Ankerite, told The Straits Times in a statement last night that 'lawyers of both parties are working towards May 22 to complete the purchase of the site'.

Its latest move follows a report in The Straits Times over the weekend that Ankerite had failed to complete the sale by its due date, last Friday.

This caused anxiety amongst some owners at the 607-unit estate in Alexandra Road, who feared that the buyers got cold feet, as some owners had committed to buying other properties.

Earlier reports indicated that owners stood to get between $870,000 and $950,000 for their units.

The sale - first inked in early 2007 for a record $548 million at the height of the property market boom - has been dogged by controversy as minority owners fought at every turn to overturn the sale.

It was finally thought to be a done deal in February after the Court of Appeal dismissed a last-ditch plea by minority owners to reverse the transaction.

However, just two weeks before the sale completion date, on April 30, Ankerite raised some issues. Two points of contention were: a sum of $750,000 transferred out of the estate management fund; and separate monies allocated for a lawsuit against the estate's management corporation (MCST) by a contractor who built the estate's clubhouse and swimming pool in 2002.

MCST members said these issues were raised 'at the last minute', but Ankerite clarified yesterday that it took time to carry out the 'due diligence process' and access to relevant documents was granted by the MCST only on Apr 23 and Apr 24.

Ankerite said the sales committee lawyers Lee and Lee notified them that these issues were resolved on the afternoon of May 15 - the sale completion date. However, Rajah and Tann wanted proof that the outstanding lawsuit had been settled, and only received a copy of the settlement agreement on Saturday, May 16.

'With this settlement agreement...the lawyers are working to complete the purchase as soon as possible,' said Ankerite's lawyers.

MCST chairman Kok Chong Weng said he was glad to hear a date has been set to complete the deal, but added that residents might be looking at options to see if any compensation can be claimed for the delay.

Meanwhile, chief executive of CapitaLand Residential's Singapore operations Patricia Chia said in a statement yesterday that 'going forward, we are looking at presenting our other projects such as the proposed development at the Gillman Heights Condominium site at the appropriate time'.

[email protected]

http://www.businesstimes.com.sg/sub/...33432,00.html?

Published May 18, 2009

Gillman Heights site sale: last-minute hurdles cleared

Lawyers for both buyers and sellers look at the new deadline of May22

By UMA SHANKARI


(SINGAPORE) The consortium that bought the Gillman Heights condo site in a collective sale has 'every intention' of completing its purchase, its lawyers said in a statement.

While the sale was not completed by the previous deadline of May 15, lawyers for the buyers and sellers are now looking at the new deadline of May 22 after two last-minute hurdles were cleared.

The buyer of Gillman Heights - a group called Ankerite, which is led by property giant CapitaLand - was supposed to have completed the $548 million purchase last Friday.

But the sale of the 99-year-leasehold estate on Alexandra Road, which has dragged on for two years now, has not been signed off yet. The deal was first inked in 2007.

Ankerite's lawyers, Rajah & Tann, had on April 30 queried the sales committee on two issues, which have since been resolved. With those obstacles cleared, Rajah & Tann is now working with the sales committee's lawyers from Lee and Lee to close the deal as soon as possible.

'The lawyers of both parties are working towards May 22, 2009 to complete the purchase of the site,' said a CapitaLand spokeswoman yesterday.

One sticking point was the transfer of $750,000 from the management corporation's (MCST) management fund to the sinking fund in August 2007 and March 2008, which was discovered during the due diligence exercise.

Rajah & Tann wanted the money transferred back into the management fund, as money from this fund goes to the buyers upon the completion of the sale.

This issue has since been resolved. Rajah & Tann said in its statement that the money will remain in the management fund, as the management council of the MCST has annulled its previous resolutions transferring money to the sinking fund.

The second contentious point was a separate suit by a local contractor against the MCST. But this appears to have been settled as well. Rajah & Tann said that on Saturday it received a copy of the settlement agreement signed by the MCST's solicitors and the solicitors for the contractor.

Ankerite initially comprised CapitaLand, Hotel Properties and two private funds, but CapitaLand will buy up another 5.5-10 per cent of the company from the stake now held by one of the private funds. This will make Ankerite a CapitaLand subsidiary.

The sale of Gillman Heights finally got the go-ahead in February this year after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the deal. Earlier reports had indicated that owners of the estate's 607 units stood to receive between $870,000 and $950,000 for their apartments.

http://www.businesstimes.com.sg/sub/...34421,00.html?

Published May 23, 2009

Gillman Heights sale finally completed

CapitaLand unit to develop site into 1,000-unit condo

By UMA SHANKARI


THE $548 million sale of Gillman Heights Condominium to Ankerite Pte Ltd, a subsidiary of CapitaLand, was completed yesterday, the developer said in a statement. Ankerite will redevelop the site into a condominium with about 1,000 apartments.

The sale was not completed by the previous deadline of May 15, leading to some speculation that the collective sale might be off. But lawyers for the buyers and sellers quickly clarified that they were looking at the new deadline of May 22 instead.

The sale of the 99-year-leasehold estate on Alexandra Road dragged on for two years since the deal was first inked in 2007. The sale of Gillman Heights finally got the go-ahead this February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the deal.

But last week, last-minute hurdles emerged.

One sticking point was the transfer of $750,000 from the management corporation's (MCST) management fund to the sinking fund in August 2007 and March 2008, which was discovered during the due diligence exercise.

The lawyers for the buyers wanted the transfer reversed. That issue, and a separate suit by a local contractor against the MCST, were both eventually resolved - clearing the way for the sale to go through.

Earlier reports had indicated that owners of the estate's 607 units stood to receive between $870,000 and $950,000 for their apartments.

http://www.straitstimes.com/Money/St...ry_380529.html

May 23, 2009 Saturday

Gillman Heights sale finally goes through

By Jessica Cheam


THE protracted and controversial sale of Gillman Heights finally came to an end yesterday when owners and buyers completed the $548 million deal.

Lawyers Lee and Lee, acting for the Alexandra Road estate's sale committee, told The Straits Times last night that the deal had finally gone through.

The fate of the estate's sale seemed to hang in the balance when purchasers Ankerite, led by property developer CapitaLand, did not complete the sale by its May 15 due date.

The estate's owners were concerned that the buyers had got cold feet but Ankerite's lawyers, Rajah and Tann, said the buyers had every intention to complete the sale.

Ankerite had raised some issues regarding the estate's management funds and an outstanding legal suit, and wanted proof that these matters were resolved before going ahead with the deal. Rajah and Tann said it received the relevant documents on May 16 - after the completion date.

In a separate statement, CapitaLand confirmed that the 607-unit Gillman Heights purchase by its indirect unit Ankerite was completed yesterday.

This puts an end to a saga that began when the sale was first inked in February 2007. Each owner is expected to get between $870,000 and $950,000 for their units.

The sale was fought at every turn by minority owners, but the Court of Appeal in February dismissed their last-ditch plea to reverse the deal.

Management committee chairman Kok Chong Weng said yesterday that residents are relieved the sale is finally over: 'We have to move on from here.'

The only issue left is whether any compensation will be paid for the one-week delay in the sale. Resident Lim Ah Kim said she felt that owners should be compensated by being paid interest.

Lawyers from both sides are said to be considering the issue. 'If this interest issue should arise, it will be dealt with accordingly,' said a Rajah and Tann spokesman.

The site will now be redeveloped by Ankerite 'into a condominium with approximately 1,000 apartments', said CapitaLand.