Horizon Towers’ Failed Buyers Allege Breach Of Contract

Source : The Straits Times, 7 Aug 2007

In the wake of a scuppered Horizon Towers deal, the failed buyers have sent a letter to lawyers representing the majority owners who signed the original sales deal, alleging the sellers are in breach of contract.

The three joint buyers - Hotel Properties Limited, Morgan Stanley Real Estate and Qatar Investment Authority, the investment arm of the Gulf Arab state of Qatar - estimate their loss arising from the aborted deal to be in the region of $800 million to $1 billion.

Hotel Properties’ group executive director Christopher Lim confirmed yesterday that the letter had been sent to law firm Tan Rajah & Cheah.

The consortium of buyers are urging the sellers to consider alternative courses of action. These include extending the deadline for the sales option beyond this Saturday.

There is currently provision for the sales committee to extend the deadline by four months. This would enable a fresh application be filed with the Strata Titles Board.

The move is the latest twist in the contentious collective sale of Horizon Towers. The sale was aborted late last week after months of bitter wrangling between neighbours and lawyers.

Last Friday, the Strata Titles Board ruled in favour of the protesting minority owners of the two tower blocks in Leonie Hill, which were due to be sold for $500 million to the developers.

The ruling in favour of minority owners was the first such ruling in seven years, and came after the board decided that the proper sales procedures were not followed.

The saga began soon after the neighbouring Grangeford condominium was sold en bloc at a far higher asking price per sq ft than the price offered for Horizon Towers.

Unhappy Horizon Towers residents banded together to call an extraordinary general meeting to replace their sales committee. Several of the original members subsequently resigned.