Thomson View en bloc: Double trouble?

Our de facto business paper has reported that the legal costs and disbursements incurred by the Thomson View Condominium homeowners who had consented to a proposed $590 million en bloc sale is in the six-figure range.

These costs, from the onset of applications to the Strata Titles Board and to the courts, increased considerably because of new issues that arose when the secret incentive payments made by HSR International Realtors to four owners became public midway through the legal action.

Since the order for the collective sale was refused because the High Court found these offers by HSR amounted to bad faith, the next issue is whether the Thomson View Sale Committee (CSC) will take action against the real estate agency and the four owners, and whether it can recover damages.

Lawyers said the owners of the 215 units had agreed to the en bloc sale. Under the collective sale agreement, the consenting owners are liable to contribute towards legal costs. At this stage, the owners have been asked by the CSC to make payments to account for costs and disbursements. And those who refuse to pay costs may be exposed to a claim by the CSC for such contributions.

Looks like the Thomson view en bloc saga is far from over…

Thomson View: En bloc-ed no more..?!

Apparently the supposed $590 million collective sale of Thomson View Condominium has stalled after 13 owners lodged objection to the deal.

It was reported that the Strata Titles Board has issued notice of a stop order yesterday. This will take effect on Jan 14. Such orders are made only if mediation is unsuccessful. There have been 3 rounds of mediation for Thomson View.

One of the issues raised by the 13 objectors is believed to be the sale price (surprise, surprise!), which they believe undervalues the development. As the Upper Thomson MRT station – part of the upcoming Thomson Line – was announced during the site’s tender period, the objectors believe they should be getting more for the site as the MRT station will be near by.

The majority owners of the 255-unit Thomson View will now have to make an application to the High Court for further adjudication.

The stop order raises concerns that the collective sale process for Thomson View may result in a drawn out legal battle due to the large size of the development.

The 540,314sqft site in Upper Thomson Road was bought by a consortium led by developer Wee Hur Development and private equity investment company Lucrum Capital for $712psf ppr in September last year. It was the fifth largest collective sale made. Owners of Thomson View units – ranging from apartments to townhouses and shop space – were expected to receive gross proceeds of $1.62 million to $3.59 million.

So the Thomson View Condominium collective sale has the making of another Horizon Towers saga, which dragged on for more than 4 years. So would this be another case of only the lawyers making all the money at the end of the day?

Greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through, and captures, the essence of the evolutionary spirit   –    Gordon Gekko

So anyone remembers what happened to Mr. Gekko at the end…?

Click on link below to read our previous posts on the Thomson View collective sale:
http://www.sgproptalk.blogspot.sg/2012/09/breaking-news-thomson-view-sold-for-590.html

Breaking News: Thomson View sold for $590 million!

Thomson View Condominium, a 99-year leasehold residential development located along Upper Thomson Road, has been sold en bloc for $590 million.

Its marketing agent HSR International Realtors said in a statement that this is the largest collective sale deal outside the prime districts of 9, 10 and 11.

It added that the deal reflects the return of confidence among major developers for collective sales sites.

Depending on the size of each unit, the current owners could pocket between $1.62 million and $3.59 million from the sale.

HSR said this represents an en bloc premium of 30% to 40% above the current resale prices of individual units.

Thomson View Condominium comprises 200 units of residential apartments, 54 townhouses and a shop unit.

Under the Master Plan 2008, the site is zoned for residential use with a gross plot ratio of 2.1 and maximum height of up to 24 storeys.

HSR said the unit land price of Thomson View Condominium works out to be about $712psf ppr.

And the developer will have to make payments to the state for enhancing the intensity of the site’s use and for topping up the site’s current lease term of 62 years back to 99 years.

All in, HSR said the total investment costs including construction, fees, interests, taxes and acquisition costs for a new residential project is estimated to be around $1.1 billion.

The deal is subject to approvals by the Strata Title Board (STB) and relevant authorities.

Source: Channel News Asia

Looks like there IS (en bloc) hope yet for estates like Lakeview Estates…

Click on link below to read our previous post on the Thomson View en bloc:
http://sgproptalk.blogspot.sg/2012/04/enbloc-news-thomson-view.html

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Faber Garden Enbloc: Update

The wife and I have heard that the Faber Garden tender has closed on Nov 22 with no bid received. 

But given the $830 million price tag, it is not difficult to appreciate why.

Click on the link below to read our previous post on the Faber Garden collective sale:
http://www.sgproptalk.blogspot.com/2011/10/enbloc-news-faber-garden-dunearn.html

We are now waiting with bated breath for the en-bloc result of Thomson View, which tender will expire on Jan 12, 2012. The asking price of between $595 million and $635 million is a major stumbling block, but we are rooting for this one to go through (vested interest, but no, we do not own a unit in this development)…

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Enbloc News #1: Thomson View

Thomson View Condominium has been put up for sale with an indicative asking price of between $595 million and $635 million, said its marketing agent HSR Investment Sales.

That translates to about $694 to $732 per square foot of potential gross floor area for the residential site located along Upper Thomson Road in District 20.

This includes an upgrading premium of about $130 million to top up the 99-year lease and a differential premium of about $158 million, said HSR.

The 540,314 square-foot site has a possible net saleable gross floor area of 1.272 million square feet.

Thomson View Condominium has been zoned for residential use with a gross plot ratio of 2.1 with a maximum height of up to 24 storeys.

HSR said a future development can yield about 1,012 units of apartments averaging 1,100sqft per unit and 33 strata landed houses averaging 2,500sqft.

A brand new development is expected to fetch a minimum of $1,350 per square foot (psf) to $1,600 psf.
HSR said higher up Upper Thomson Road, units under construction at Thomson Grand are changing hands at average prices of $1,350psf onwards and one unit had achieved a sale price of up to $1,501psf.

Currently, Thomson View consists of 200 residential apartments, 54 townhouses and a shop lot.

The site is open for public tender until 3pm on 12 January, 2012.

Source: Channel News Asia

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