Horizon Towers minority owners appeal against Strata board ruling
JUST as the long-running saga over the Horizon Towers collective sale looked about to end, another chapter is unfolding - and other similar disputes are looming.
The minority owners opposing the $500 million collective sale have appealed to the High Court against a ruling last month by the Strata Titles Board (STB), which had permitted the deal to go ahead.
Now, it has emerged that Horizon Towers is not the only condominium caught in a legal battle over a collective sale.
Owners at other estates such as Finland Gardens are also embroiled in similar tangles. The majority owners of the 48-unit estate in Siglap have filed an appeal on the instructions of buyer Sing Holdings - after the STB threw out the $49.5 million sale application in late November.
Another case, that of Phoenix Court, may go to the Court of Appeal, said an industry source who declined to be named. The STB tribunal that heard the Horizon Towers case said it had been guided by the Phoenix Court case. An objecting couple appealed against an STB decision to approve the Phoenix Court sale. The High Court upheld the STB order on Nov 9.
Over in Serangoon Road, Regent Court owners are preparing to file an appeal in the High Court against an STB decision to grant the $34 million sale, sources said.
Also, owners at Airview Towers in St Thomas Walk have filed an appeal in the High Court against an STB decision to reject its collective sale on a technicality.
The sale of Horizon Towers at Leonie Hill was finally approved by the STB - which had earlier thrown out the sale - on Dec 7 after a lengthy hearing, much sweat and tears, and nearly a year after the deal was inked.
Saying a collective "no"
Blocking the sale
Over the past two days, three sets of Horizon Towers minority owners filed appeals with the High Court. They now await a hearing date.
The objectors are believed to be aggrieved by the STB decision as they feel the hearing was not fair.
A key point of contention: The sale committee sold the estate at the reserve price even though it knew the market had already climbed.
The reserve price of neighbouring The Grangeford was revised higher before the Horizon Towers deal was inked. But the sale committee stuck with the $500 million price, which was a reserve price set in 2006.
Protecting his home
One minority owner, retiree K.K. Then, 53, says that even if the High Court appeal failed, he would take the case to the Court of Appeal.
If this happens, the deal could be delayed by another three months.
"My chances of winning may not be high but I will exhaust all legal means to protect my home."
He says he never intended to sell his home as it is something money cannot buy. "My wife and I feel we are victims of the collective sale system."
The transaction hit a snag after some owners felt the $500 million price, which works out to $810 to $820 per sq ft (psf) on average, was not enough in a fast-rising market. Neighbouring The Grangeford was sold en bloc last June for just over $1,800 psf.
The dispute descended into acrimony and the STB then threw the sale out on a technicality before an earlier High Court appeal which resulted in a fresh STB hearing.
Horizon Towers became the first collective sale where majority owners were slapped with a lawsuit for alleged breach of contract. The suit was lodged by the buyers: Hotel Properties, Morgan Stanley Real Estate and Qatar Investment Authority.
Over the past two days, three sets of minority owners or objectors filed appeals with the High Court. The owners had a month after the STB ruling to appeal, and yesterday was the final day. They now await a hearing date - expected within three months.
One minority owner said even if the High Court appeal failed, he would take the case to the Court of Appeal. If this happens, the deal could be delayed by another three months. 'My chances of winning may not be high but I will exhaust all legal means to protect my home,' said the owner, Mr K.K. Then, 53.
The retiree said he and his wife have been drawn unwillingly into the sale process. He said he never had the intention to sell his home as it is something money cannot buy.
The objectors are believed to be aggrieved by the STB decision as they feel the hearing was not fair.
At the STB hearing late last year, a key point of contention was that the sale committee sold the estate at the reserve price even though it knew the market had already moved up.
The reserve price of The Grangeford was revised higher before the Horizon Towers deal was inked. But the sale committee stuck with the $500 million price, which was a reserve price set in 2006.
