The en bloc sale of Thomson View has been fraught with obstacles. Twice failed, one thought it would be lucky on its third trial – sold it was but matters did not end there.
On its last attempt to go en bloc in April 2012, the 255-unit residential development was acquired by Wee Hur-Lucrum, a consortium by Lucrum Capital and publicly-listed Wee Hur Development, in September, for S$580 million.
Occupying a site measuring 540,314 square feet with a plot ratio of 2.1, the gross price works out to S$685 per square foot per plot ratio (psf ppr), inclusive of the associated premiums – believed to be a S$107 million and a S$90 million premium for enhancing the property and increasing the 62 -year remaining lease to 99 years, respectively.
The deal was closed with 84% of share values, or owners of 215 units, giving the nod.
Things did not run smoothly, however, with a small number of owners raising objections to the low sale price and the additional payments received by some owners from the collective sale marketing agent HSR, to give the green signal
In 14 January this year, a stop order was issued by Strata Titles Board after three rounds of mediation failed; whereby 13 owners claimed they were underpaid as the nearby upcoming Upper Thomson MRT station will boost sale value.
Thomson View comprises 100 1,313 sq ft apartments, 54 townhouses of 3,842 sq ft each, another 100 residential units of 2,023 sq ft each and a 1,862 sq ft shop space. Owners were expected to receive proceeds of S$1.62 million, S$3.59 million, S$2.30 million and S$2.82 million respectively from the collective sale.
The dispute was hauled to the High Court in late June with 17 owners of 12 units objecting to the sale on grounds of undervaluation and secret payments by HSR.
On 3 September, Justice Andrew Ang ruled in favour of the plaintiffs and chastised HSR for acting “in bad faith” by giving additiona1 payments to selected owners to support the sale, even though the payments was from HSR's commission. Justice Ang noted that this only means these selected owners benefited.
Wee Hur-Lucrum's lawyer, Lee Liat Yeung of Rodyk & Davidson, stated that it will be some time before it can analyse the verdict and decide on the next step.
The first collective sale for Thomson View was launched in November 2007 and the second in November 2011, but was unsuccessful both times. It seems that it will be thrice 'unlucky'.
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