Another day, another set of meetings with lawyers, with no end in sight for the sellers of Horizon Towers but time is fast running out.
The deadline for the aborted sale is today, which means the sellers must decide on a course of action in the face of a $1 billion lawsuit from the intended buyers. But no decision has been made, despite lengthy meetings that went on long into the night.
The Horizon Towers collective sale debacle began last Friday when the Strata Titles Board (STB) halted its sale application on technical grounds. The buyers want the sellers to extend the deadline for four months from today and then file a new sale application with the authorities or appeal to the High Court to reconsider STB’s decision. But that could mean selling the Leonie Hill estate at the $500 million price inked in February.
Prices have rocketed since then and the sellers are not keen to extend the deadline just to see their homes sold at what most now feel are bargain basement prices.
The intended buyers - Hotel Properties Limited (HPL), Morgan Stanley Real Estate and Qatar Investment Authority - have threatened to sue the sellers for alleged breach of the contract inked in February.
They also told the owners of 173 units who voted for the sale that they could be sued for lost profits of between $800 million and $1 billion. This works out to as much as $5.78 million per unit on average.
‘It’s quite shocking that they would take such a drastic step,’ said a 27-year-old resident. ‘We are just a bunch of innocent people who had the intention of going through with the sale.
Mr Victor Ow, 53, agreed: ‘Even though we signed the contract at a lower price, we were prepared to honour it until the STB’s decision.’
The amount the buyers want to claim from each seller is way above the $2.3 million that each of the 199 units would have received from the $500 million sale. Each of the 11 penthouses would have pocketed $4 million or more. Horizon Towers has a 99-year lease.
‘Whether the sellers are liable, that is arguable,’ said a legal industry observer. ‘Potentially, the people who may be liable will be the marketing agent, sales committee and the lawyer, depending on the latter’s scope of instruction.
Horizon Towers’ marketing agent, First Tree Properties, took on the job without seeking a commission from the sellers, whom it was representing. In an unusual move, it was instead going to take a cut from the buyers.
But a typical collective sale agreement would have a provision that appoints the marketing agent and another authorising the sales committee to act on the sellers’ behalf.
Source : Straits Times - 11 Aug 2007
Sunday, August 12, 2007
FINANCIAL market drama notwithstanding, Singapore’s economy is expected to maintain its strong momentum
FINANCIAL market drama notwithstanding, Singapore’s economy is expected to maintain its strong momentum, after expanding by a blistering 8.6 per cent in the April to June quarter.
Notably, economic activity sprinted ahead at its fastest pace since the beginning of last year, this time not because of the performance of its electronics industry, but in spite of it, according to figures released by the Ministry of Trade and Industry (MTI) yesterday.
While the global appetite for locally made electronics deteriorated, second-quarter gross domestic product growth picked up speed nonetheless, on the back of sizzling domestic demand.
With double-digit growth in the construction and financial services sectors, overall growth bettered the 6.4 per cent registered in the previous quarter.
This is despite electronics output eking out a mere 2.5 per cent expansion and electronics exports falling 14 per cent.
It is this diversification away from what used to be the dominant workhorse of the economy that makes up ‘the story behind the numbers’, said Mr Ravi Menon, MTI’s Second Permanent Secretary, at a press conference.
‘One of the most striking things of the current cycle is how well the economy has done, despite the slump in electronics,’ he said.
For one, services have become a key contributor to the economy. The sector grew by 8.4 per cent, compared with a year ago.
Within manufacturing, there are also four other growth engines besides electronics, noted Mr Menon.
These are transport engineering, biomedicals, chemicals and precision engineering.
This has enabled the manufacturing sector to manage 8.3 per cent growth, despite weakness in electronics.
Construction has become the fastest expanding sector in Singapore, as building activity soared 17.6 per cent in the second quarter, compared to a year ago.
The next high-growth industry is financial services, which expanded by 17 per cent, powered by healthy lending activity at home, and burgeoning regional demand for private banking services.
Meanwhile, the hotels and restaurant trade picked up slightly, rising 5.2 per cent.
Overall growth momentum gained pace in the second quarter, surging by 14.4 per cent over the first.
Such momentum, coupled with the diversity of growth sources, means Singapore is more resilient in the face of a slump in any single industry.
As a result, the MTI is forecasting economic growth to range between 7 per cent and 8 per cent this year.
However, two major risks to this rosy outlook are the ‘negative spillover from the United States housing market’ and potential oil supply shocks.
Separately, the Monetary Authority of Singapore foresees the consumer price index (CPI) rising faster next year.
MAS deputy managing director Ong Chong Tee said the central bank’s preliminary CPI inflation forecast for next year is between 1 per cent and 2 per cent, compared to the 0.5 per cent to 1.5 per cent it expects for this year.
Source : Straits Times - 11 Aug 2007
Notably, economic activity sprinted ahead at its fastest pace since the beginning of last year, this time not because of the performance of its electronics industry, but in spite of it, according to figures released by the Ministry of Trade and Industry (MTI) yesterday.
While the global appetite for locally made electronics deteriorated, second-quarter gross domestic product growth picked up speed nonetheless, on the back of sizzling domestic demand.
With double-digit growth in the construction and financial services sectors, overall growth bettered the 6.4 per cent registered in the previous quarter.
This is despite electronics output eking out a mere 2.5 per cent expansion and electronics exports falling 14 per cent.
It is this diversification away from what used to be the dominant workhorse of the economy that makes up ‘the story behind the numbers’, said Mr Ravi Menon, MTI’s Second Permanent Secretary, at a press conference.
‘One of the most striking things of the current cycle is how well the economy has done, despite the slump in electronics,’ he said.
For one, services have become a key contributor to the economy. The sector grew by 8.4 per cent, compared with a year ago.
Within manufacturing, there are also four other growth engines besides electronics, noted Mr Menon.
These are transport engineering, biomedicals, chemicals and precision engineering.
This has enabled the manufacturing sector to manage 8.3 per cent growth, despite weakness in electronics.
Construction has become the fastest expanding sector in Singapore, as building activity soared 17.6 per cent in the second quarter, compared to a year ago.
The next high-growth industry is financial services, which expanded by 17 per cent, powered by healthy lending activity at home, and burgeoning regional demand for private banking services.
Meanwhile, the hotels and restaurant trade picked up slightly, rising 5.2 per cent.
Overall growth momentum gained pace in the second quarter, surging by 14.4 per cent over the first.
Such momentum, coupled with the diversity of growth sources, means Singapore is more resilient in the face of a slump in any single industry.
As a result, the MTI is forecasting economic growth to range between 7 per cent and 8 per cent this year.
However, two major risks to this rosy outlook are the ‘negative spillover from the United States housing market’ and potential oil supply shocks.
Separately, the Monetary Authority of Singapore foresees the consumer price index (CPI) rising faster next year.
MAS deputy managing director Ong Chong Tee said the central bank’s preliminary CPI inflation forecast for next year is between 1 per cent and 2 per cent, compared to the 0.5 per cent to 1.5 per cent it expects for this year.
Source : Straits Times - 11 Aug 2007
The Inland Revenue Authority of Singapore (Iras) understands from SAEA that there are about 300 accredited agencies, with more than 6,000 agents
I REFER to the letter by Mr Low Swee Kim, ‘How is public protected if agents are not accredited?’ (ST, Aug 7).
The Government encourages and helps to improve the professional standards in the real-estate agency industry through efforts such as the Singapore Accredited Estate Agencies (SAEA) scheme. Consumers have to exercise care and make informed choices when engaging the services of real-estate agents. Discerning consumers would want to engage only suitably qualified estate agents, including those accredited under the SAEA scheme, to be assured of the quality of their services.
The Inland Revenue Authority of Singapore (Iras) understands from SAEA that there are about 300 accredited agencies, with more than 6,000 agents registered with them. There is an ample number of agents from accredited agencies to serve consumers.
Consumers may check whether an agency or agent is accredited by referring to the ‘Accredited Agents Directory’ on www.saea.org.sg.
Chin Li Fen (Ms)
Assistant Commissioner
(Corporate Services Division)
Inland Revenue Authority of Singapore
Source : Straits Times - 11 Aug 2007
The Government encourages and helps to improve the professional standards in the real-estate agency industry through efforts such as the Singapore Accredited Estate Agencies (SAEA) scheme. Consumers have to exercise care and make informed choices when engaging the services of real-estate agents. Discerning consumers would want to engage only suitably qualified estate agents, including those accredited under the SAEA scheme, to be assured of the quality of their services.
The Inland Revenue Authority of Singapore (Iras) understands from SAEA that there are about 300 accredited agencies, with more than 6,000 agents registered with them. There is an ample number of agents from accredited agencies to serve consumers.
Consumers may check whether an agency or agent is accredited by referring to the ‘Accredited Agents Directory’ on www.saea.org.sg.
Chin Li Fen (Ms)
Assistant Commissioner
(Corporate Services Division)
Inland Revenue Authority of Singapore
Source : Straits Times - 11 Aug 2007
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