The owners of Chuan Park are going to participate in mediation about the en bloc sale; a senior counsel has been selected

Sep 29, 2022

On October 18, representatives of Chuan Park owners are scheduled to get together for their first mediation session to try to work out their differences on the en bloc sale of their condominium complex.

According to information provided, the Collective Sale Committee (CSC), which is believed to be representing the majority shareholders, has recruited Senior Counsel N Sreenivasan of K&L Gates Straits Law to help them in the mediation process.

The ten minority owners who are opposed to the transaction have not yet made a decision regarding whether or not they would retain legal representation for the process.

Starting from the date of the first mediation session, the Strata Titles Board (STB) has a total of sixty days to mediate the disagreement that has arisen between the majority owners and the minority owners. In the event that the mediation is unsuccessful, the majority owners will be required to submit an application to the High Court requesting that the collective sale be authorised.

On July 5, the 99-year leasehold apartment was sold to purchasers with connections to the developers Kingsford Group and MCC Singapore for a price of S$890 million. The owners of the 444 residences stand to collect gross revenues ranging from around S$1.16 million for a unit measuring 710 square feet (sq ft) to up to S$2.53 million for a unit measuring 2,045 sq ft. One of the two commercial units will be awarded $1.09 million Singapore dollars, while the other will be valued at $2 million Singapore dollars.

According to a report that was published earlier this month, dissident owners had submitted their objections to the STB. The owners alleged that Chuan Park's CSC and marketing agent ERA Realty had failed to disclose material facts relating to a higher development baseline for the condominium, which would have resulted in a "deep discount" for the purchasers. Other issues were also cited in the objections.

According to our knowledge, the purchasers of Chuan Park have submitted requests to the relevant authorities for approval of a Pre-Application Feasibility Study (PAFS) and an Outline Planning Permission (OPP).

The purchase of the condo is contingent on the Land Transport Authority granting clearance for the purchasers' PAFS to reconstruct the 37,215.6 square metre (sq m) site to accommodate no fewer than 919 dwelling units, assuming an average unit size of 85 sq m.

In addition, and in addition to other conditions, the offer to acquire is subject to the purchasers receiving OPP for redeveloping Chuan Park with a minimum floor space of 89,824 sq m for the development baseline. This is one of the criteria that must be met.

The purchasers have the option to back out of the contract and receive a return of their deposit if any of the conditions outlined above are not satisfied. Up to this point, a preliminary deposit in the amount of 5 million Singapore dollars has been paid.