HOME owners faced with the momentous decision of selling their home en bloc will soon benefit from a clearer, fairer sales process

HOME owners faced with the momentous decision of selling their home en bloc will soon benefit from a clearer, fairer sales process - and the right to change their minds within five days.

Amid a record number of collective sales in the past two years, some home owners have been left unhappy at the sale process over issues such as how the sales committee is formed.

En-bloc sellers have been plagued by rumours and a lack of clear information on sale procedures. Some home owners with strong emotional attachments to their homes have felt pressured to sell.

In one high-profile dispute, the sale of Horizon Towers for $500 million was blocked on a technicality - the paperwork was not in order - by the Strata Titles Board, after action was taken by owners who were opposed to the sale. They had disputes over issues including the transparency of the sale process. The developers have now taken the sellers to the High Court for failing to see the sale through.

One of the proposed changes will give more power to the board, which can disregard any technical irregularity if it is satisfied that it will not prejudice any owner’s interest.

Another key change is the introduction of strict guidelines on the currently unregulated process of setting up an en-bloc sales committee to oversee a sale. For instance, owners can only form a sales committee and elect members at a general meeting.

Another major change will provide for a five-day ‘cooling off’ period after a collective sale agreement is signed during which a home owner may change his mind.

The proposed changes are contained in an amendment to the Land Titles (Strata) Act, introduced to Parliament by Deputy Prime Minister and Minister for Law Professor S. Jayakumar yesterday.

He first outlined some of the changes in March. More proposals were added after public consultation in April and May - which attracted hundreds of suggestions - and talks with industry experts.

Prof Jayakumar said the extra changes will further enhance transparency and procedural clarity, and offer better protection to affected home owners. There are more than 30 proposed amendments to take effect as soon as early as October.

One change addresses an imbalance in voting rights in some mixed retail, office and residential developments - by adding a new level of owner consent by floor area, before a sale can proceed.

To ensure owners are kept in the know, general meetings must be held to look at issues such as appointing lawyers and consultants, or dividing sales proceeds.

Also, a lawyer must be present to witness the signing of the collective sale agreement, and to explain the legal terms and liabilities. Observers say this move will prevent owners from complaining that they were forced to sell under duress.

To assure owners the best price is reached, a collective sale launch must be made by public tender or public auction. If this method fails, the sales committee can follow up and negotiate with any bidder. Still, a sale by private treaty must be concluded within 10 weeks of the close of the tender or auction.

And an independent valuation has to be obtained on the date the tender closes with bids to be revealed to the owners as soon as practicable - to help them decide if the bids are favourable.

Another change will return any remaining money in a condo’s management and sinking funds to owners - not the purchasing developer.

The Strata Titles Board can increase the amount a minority owner gets from sales proceeds if, say, he spent a lot to do up his home before finding about the sale.

‘All the changes will give owners more say in a collective sale,’ said Mr Nicholas Mak of consultancy Knight Frank. ‘But they come at a price as the sale process will most likely be lengthened.’

GOOD class bungalow at 15 White House Park has become mainland Singapore’s most expensive, after it was sold for a record $1,308 per sq ft

A GOOD class bungalow at 15 White House Park has become mainland Singapore’s most expensive, after it was sold for a record $1,308 per sq ft (psf) - eight years after the historic property was restored and put on sale.

The 22,000 sq ft conservation bungalow - called Glencaird - was sold to a Singaporean for $28.8 million, Wheelock Properties said in a statement yesterday.

Wheelock has been managing the property for Oroll, a wholly-owned unit of The Wharf (Holdings), which is also owned by Wheelock’s parent, Wheelock and Company.

Glencaird is one of 12 luxury bungalows that make up The Glencaird Residences and the only conservation bungalow in the series.

Oroll developed the bungalows.

The other 11 bungalows have already been sold at an average price of $838 psf.

Before it finally found a buyer, Glencaird - a restored, 105-year- old Victorian bungalow with five bedrooms - had sat empty since its completion in 1999.

‘We received several offers for Glencaird over the years,’ said Mr David Lawrence, Wheelock’s chief executive officer, in the statement.

‘However, we felt they were not reflective of the value, given that this is a very unique conservation piece in an excellent location.’

Prior to Glencaird’s sale, the record for mainland Singapore’s priciest bungalow was held by 63 Dalvey Road - sold in March for $16.45 million, or $1,091 psf.

On Sentosa, the highest price fetched by a bungalow plot is $1,473 psf.

Good class bungalows, Singapore’s most prestigious homes, are now enjoying astronomical asking prices amid the property boom.

Source : Straits Times - 30 Aug 2007

Ascott Group has agreed to buy a 99-year leasehold serviced residence in town for $79.3 million

THE Ascott Group has agreed to buy a 99-year leasehold serviced residence in town for $79.3 million, the company announced yesterday.

The property, located at Wilkie Road, is part of lifestyle complex Wilkie Edge, which is under construction. Wilkie Edge is a mixed development consisting of offices, retail, and food and beverage outlets.

The acquisition, to be funded from internal resources and external borrowings, will bring Ascott’s property portfolio in Singapore to 11, with a combined 1,042 units. It will be named Citadines Singapore Mount Sophia and open in the first half of 2009.

‘Citadines Singapore Mount Sophia is strategically located in the heart of Singapore’s upcoming arts, learning and entertainment hub in the Bras Basah-Bugis area,’ said Ascott president and CEO Jennie Chua. ‘It is in the city centre with excellent access to the central business district and the shopping and entertainment attractions of Orchard Road.’

The Ascott Group had earlier inked a memorandum of understanding to manage Wilkie Edge’s serviced residences for an initial 10-year term with an option to extend it for another 10 years.

‘Strong demand for extended-stay accommodation, the vibrant real estate market, and the property’s attractive location are reasons for Ascott to acquire leasehold interests in the serviced residence instead of only managing the property for fee income,’ added Ms Chua. ‘This will enable us to maximise shareholder returns.’

The new property will have 154 units and be Ascott’s first Citadines-branded serviced residence in Singapore. It will cater to the young and trendy, expatriates working in the creative services community as well as foreign students and academics from the nearby Singapore Management University, Nanyang Academy of Fine Arts and LaSalle College of The Arts.

The acquisition agreement is inked between Ascott’s indirect wholly owned subsidiary Ascott Scotts Pte Ltd, CapitaLand Selegie Pte Ltd and HSBC Institutional Trust Services, which is the trustee of CapitaCommercial Trust (CCT).

Just last month, CCT had announced that it is buying Wilkie Edge for $262 million. The pact comes with an option to lease the serviced apartments for a $79.3 million consideration. When this option is exercised, CCT’s purchase price for Wilkie Edge will be reduced to $182.7 million.

Source : Business Times - 30 Aug 2007