{"id":29745,"date":"2016-10-13T10:01:19","date_gmt":"2016-10-13T03:01:19","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/shunfu-ville-sale-dispute-could-drag-on-prove-costly-for-owners\/"},"modified":"2016-10-13T10:04:58","modified_gmt":"2016-10-13T03:04:58","slug":"shunfu-ville-sale-dispute-could-drag-on-prove-costly-for-owners","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/shunfu-ville-sale-dispute-could-drag-on-prove-costly-for-owners\/","title":{"rendered":"Shunfu Ville sale dispute could drag on, prove costly for owners"},"content":{"rendered":"


\nThe ongoing dispute over the collective sale could drag on for months and cost the owners up to $400,000 in legal fees. (Photo: JLL)
\nThe sale of Shunfu Ville, the largest en bloc deal since 2007, has hit a brick wall. This week, several newspapers reported that five households at the 358-unit residential development in the Bishan-Thomson area are opposing the sale for a number of reasons, including the expectation of a bigger payout from the buyer Qingjian Realty.
\nThe Chinese developer paid $638 million for the massive 408,927 sq ft site back in May, which works out to a land cost of $747 psf per plot ratio. However, Lianhe Zaobao reported that the minority owners filed an objection with the Strata Titles Board in July, but mediation talks failed, so the case is now going to the High Court.
\nMaking the situation more complicated, plans to build a new project of up to 36-storeys high were thwarted, after the Urban Redevelopment Authority (URA) instructed Qingjian to limit the maximum height to 23 storeys to preserve the view from the nearby MacRitchie Reservoir Park.
\nWhen contacted, Li Jun, Qingjian\u2019s Managing Director, said: \u201cWe will await the final outcome of the collective purchase, and will definitely want to maximise the plot ratio (of 2.8) within the scope of the URA guidelines when it is time to embark on the design.\u201d
\nBut this could take a while due to the ongoing dispute. \u201cThis could drag the entire deal for another six months or more, and add to the costs of the sales,\u201d said Christina Sim, Director, Capital Markets at Cushman & Wakefield. Media reports stated that the owners may have to fork out as much as $400,000 in legal fees.
\nIt\u2019s definitely a setback for the over 80 percent of owners who consented to the sale. Each household stood to gain an average payout of about $1.78 million from a successful sale.
\nDespite this, Sim isn\u2019t surprised that the deal stalled. \u201cUnfortunately, going to the High Court is almost a norm for a collective sale, and I am sure the majority owners and the buyer have factored all these contingencies into their agreement,\u201d she said.
\nGilstead Court in Newton and the Thomson View Condominium along Upper Thomson Road are just two examples of recent en bloc deals which turned sour due to ongoing disputes involving some of the owners, with no resolution in sight.
\nDespite the uncertainties and risks, Sim believes Qingjian will proceed with the Shunfu Ville sale \u201cbecause it appears they have bagged a fantastic plot for a reasonable price\u201d.
\nDeveloped in the late 1980s by the former Housing & Urban Development Company (HUDC), Shunfu Ville has about 70 years left on its lease. Qingjian had revealed plans to build more than 1,000 homes on the site.
\nMeanwhile, property consultancy firm JLL, which brokered the Shunfu Ville sale, declined to comment when contacted by PropertyGuru.
\nIn a statement last week, Karamjit Singh, International Director and Head of Residential at JLL, expressed optimism that the market was slowly turning a corner with three en bloc sales so far this year, up from just one last year and none in 2014. \u201cThis brings the total value of successful en bloc sales to $1 billion,\u201d he said.
\nJLL also brokered the most recent collective sale involving Raintree Gardens in Potong Pasir. The 175-unit development was sold to a joint venture company of UOL and UIC for $334.2 million, or $797 psf per plot ratio.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Shunfu Ville sale dispute could drag on, prove costly for owners<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The ongoing dispute over the collective sale could drag on for months and cost the...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-29745","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-7JL","jetpack-related-posts":[{"id":39667,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/high-court-gives-green-light-to-shunfu-ville-sale\/","url_meta":{"origin":29745,"position":0},"title":"High Court gives green light to Shunfu Ville sale","date":"January 5, 2017","format":false,"excerpt":"\r The collective sale of the HUDC estate faced a major hurdle last year after five owners objected to its sale. (Photo: JLL) The High Court on Wednesday (4 January) approved the collective sale of Shunfu Ville to Qingjian Realty, reported The Straits Times. While no written judgment was issued,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54401,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/shunfu-ville-sale-finally-goes-through\/","url_meta":{"origin":29745,"position":1},"title":"Shunfu Ville sale finally goes through","date":"May 11, 2017","format":false,"excerpt":"\r The court dismissed an appeal lodged by some of the owners who objected to the sale. The collective sale of Shunfu Ville has finally received the green light, after the Court of Appeal dismissed the appeal lodged by objectors, reported the Straits Times. The $638 million sale of the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":61838,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/lakepoint-condo-eyeing-en-bloc-sale-site-bigger-than-shunfu-ville\/","url_meta":{"origin":29745,"position":2},"title":"Lakepoint condo eyeing en bloc sale, site bigger than Shunfu Ville","date":"July 26, 2017","format":false,"excerpt":"\r View of the Lakepoint condominium at Lakepoint Drive. (Photo: Jianwei Huang) Owners of the ageing Lakepoint condominium near Lakeside MRT station are believed to be exploring opportunities to go en bloc in the next two years, or even earlier, according to some residents with knowledge of the matter. PropertyGuru\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23907,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/raintree-gardens-may-be-up-for-collective-sale\/","url_meta":{"origin":29745,"position":3},"title":"Raintree Gardens may be up for collective sale","date":"August 25, 2016","format":false,"excerpt":"\r The collective sale attempt of Raintree Gardens follows the $638 million sale of Shunfu Ville (pictured) in May. Owners of a privatised former HUDC estate have secured the minimum consent level to put the 175-unit property up for en bloc sale, reported The Straits Times. With just over 70\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":30970,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/news-roundup-october-2016\/","url_meta":{"origin":29745,"position":4},"title":"News Roundup (October 2016)","date":"October 21, 2016","format":false,"excerpt":"\r \u00a0 \u00a0 Our top Singapore property stories. Shunfu Ville sale dispute could drag on, prove costly for owners The sale of Shunfu Ville, the largest en bloc deal since 2007, has hit a brick wall. 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