Regent Garden En Bloc Sale Contested

Source : The Business Times, January 19, 2008

Allgreen Properties' purchase of Regent Garden via a collective sale is now being contested by the majority sellers of the property, the company said in a filing to the Singapore Exchange yesterday.

BT understands that the majority owners, who together own 25 of the 31 units and over 80 per cent of the share value in Regent Garden, are saying that the sale price of $34 million was agreed to as a result of a mistake regarding the development charge.

Based on subsequent valuation reports - they claim that the true market value of Regent Garden should be between $39.7 million and $42 million.

BT understands that Regent Garden's sales committee did not officially ascertain the development charge before entering into the agreement with Allgreen.

There is also some unhappiness at the higher prices the minority owners walked away with.

The majority owners now want the High Court to declare that the collective sale is no longer binding.

Alternatively, they are asking that they be paid an additional sum of $5.7-$6.7 million, 'be placed in the same position' as the minority owners of the property', or be paid damages, according to Allgreen's statement.

Allgreen said that it intends to 'vigorously' contest the claims. 'The company's position is that the agreement is and remains valid and binding at the original sale price of $34 million,' it said.

Regent Garden's sales committee filed the originating summons in the High Court on Jan 10. Allgreen was served with the summons on Jan 14.

Allgreen had previously obtained unanimous consent to the sale of Regent Garden, it said.

Allgreen also said that it commenced legal proceedings in the High Court yesterday for an order that the majority sellers complete the transaction in accordance with the terms of the agreement. The minority owners, who have agreed to complete the transaction, have joined these proceedings 'because they have an interest in the matter', Allgreen said.

Allgreen is being represented by Davinder Singh of Drew & Napier, while the minority sellers are represented by Ang Cheng Hock of Allen & Gledhill.

The majority owners are being represented by Molly Lim of Wong Tan & Molly Lim LLC.