HIS condominium may have been sold en bloc, but Mr LK Yeo, 42, is not happy. He says he wants more from the sale and is even prepared to go to the High Court to fight his case. He had bought the 1,700 sq ft three-bedroom unit at Waterfront View on Bedok Reservoir Road for $515,000 six years ago. The en bloc price for each flat is $660,000. On paper, it looks as if he's gained $145,000. But after the sale, he said he will not have any profit and will be down by $80,000, which he would have to pay to the CPF and the bank. (See report on facing page.) Why? 'Interests costs,' he explains. At the same time, he said the money spent on renovation - more than $140,000 over a period of time - would go down the drain. His younger brother, Mr Yeo Loo San, who lives next door, is also refusing to sell. He has a similar flat as his older brother. He too, feels that he should get more money for his flat. The Yeos live on the 14th floor, the topmost floor of their block. They are among the 13 people who are refusing to sign the sale agreement at the ex-HUDC estate. When news broke that the sprawling 583-unit project was sold for $385 million after talks with FCL Peak, a joint venture between Frasers Centrepoint and Far East Organization, newspapers called it a 'jackpot'. This was because the price was a 65 per cent premium above the $400,000 an average unit could have fetched in the open market. Not surprisingly, more than 90 per cent of residents have signed the agreement to sell. Only an 80 per cent consent is needed for an agreement to be signed with the buyer. Lawyer Kevin Tan, who sits on the sale committee, said: 'Some people may not want to sell. This is their right. We must see what the Strata Title Board says. 'The persuading has already been done. Now it is a matter of waiting.' As the deal does not have unanimous approval, the parties are meeting the Strata Titles Board (STB) for mediation. If the STB feels that the brothers have a case, then it could order that the sale not go ahead. For the Yeos, it is not a matter of blocking the sale, but getting 'fair compensation' for their homes. The younger Mr Yeo, who works in a family firm together with his brother, asked: 'Many people who are willing to sell are those who bought their units for $180,000 or thereabouts. They would truly have a windfall. But what about the minority who are suffering a loss like us?' He is married and does not have any children. He added: 'In principle, I am not against selling, but I want to be able to buy a comparable unit in this area with the sales proceeds.' A similar-sized unit overlooking the reservoir would cost around $900,000, said the older Yeo. And this is what he and his brother have asked for. It is understood that the sale committee have offered more than the base price of $660,000 to the brothers but this has been rejected. They didn't want how to reveal the amount offered. 'With this amount and the payments we have to make to the banks and CPF, we are almost looking at a downgrade,' said the older Mr Yeo. The two groups of residents will appear before the STB today. If they cannot come to an agreement, they would then go to court. LEGAL COSTS If the Yeos see this all the way to the High Court and lose, they would end up with just $660,000. In addition, they have to pay legal costs for both sides. The other side has appointed Lee and Lee as their lawyers. How far are they willing to go? The older Yeo, who has a 7-year-old daughter, shrugged. 'We feel that we need to bring this further along than has been the case. 'We have not yet decided where is the end point. 'In the meantime, there are still people who insist on congratulating me. There is nothing to be happy about.' Why some owners resist sale INDUSTRY experts The New Paper spoke to said there may be different reasons why some people resist en bloc sales. Mr Sam Tan, the CEO of NRA Real Estate, said: 'Some people resist selling their homes because of sentimental value, but most of the time, the disagreement is over money and money distribution.' Commenting on the $80,000 that Mr Yeo had to pay back to the CPF and the banks, he said this was not surprising. 'Depending on the loan, the terms differ. Also some loans may include overdrafts, so the interest rates are different.' According to Mr Eugene Lim, an assistant vice-president of ERA, sometimes a minority resists the sale because not everybody is happy with the distribution method. 'For example, if there is an equal distribution method, those who have a high floor and a good view, would say, 'Why am I being paid the same amount?' 'The other reason could be that they have paid a high price and are suffering losses, even though the property is going for an en bloc sale.' Like the Yeos, an 80-year-old widow is fighting a lone battle against an en bloc sale. Madam Chow Ai Hwa has turned to the Strata Titles Board to block the sale of Eng Lok Mansion, a prime estate beside Gleneagles Hospital in Napier Road, The Straits Times reported. Her 62 neighbours have all signed the deal. Napier Properties had offered $138 million for the freehold property in March, netting each owner about $2.16 million - double what they would have received if they had sold their units individually. Madam Chow, who is arguing the case herself, has lived there for 37 years and was the first occupant of her apartment. In her affidavit to the board, she claimed that properties in the Tanglin area can fetch $3,000 per sq ft. That would mean $4.7m for each owner. She is also disputing the fact that money was being divided equally, irrespective of the size of the flat. She is not holding out for money, but is asking for an apartment at the new development instead. Madam Chow wants to stay on as she feels the spirit of her late husband, who died in 2002, lingers in the house. She now lives alone. |