Regent Garden Owners Deny Trying To Back Out Of Deal

Source : The Straits Times, Jan 24, 2008

MAJORITY owners at Regent Garden have denied that they are ‘greedy’ and trying to back out of a collective sale they are challenging in court.

The 25 owners told The Straits Times that they only want the court to clarify if the agreement with Allgreen Properties can proceed even if the price undervalues their property.

They want to know whether the contract is still binding in a case where the development charge is wrong.

The owners are also upset that Allgreen paid more money to the six minority owners, who did not vote for the sale, than it did to those who backed it.

The 25 owners inked an agreement last April to sell their property in West Coast Road to mainboard-listed Allgreen for $34 million.

One of these owners is former MP Aline Wong, who stepped down from the chairmanship of the Housing Board last year.

But the owners are claiming that the price is too low as the actual development charge - which is much lower - was not obtained. They want damages of between $5.7 million and $6.685 million from Allgreen.

The damages claim is based on two revised valuation figures that use the correct development charge.

The owners wrote to Allgreen last month, claiming that the sale price of $34 million was a ‘mutual fundamental mistake’ as it factored in a far higher development charge.

Allgreen said last Friday that it intends to ‘vigorously contest this action, and the claims and allegations made by the majority vendors’.

The Straits Times understands from the majority owners that they are only ’seeking clarification and fairness’ from the courts.

They want to know if the sale can go ahead at this ‘undervalue’ and not at ‘market value’.

They also query if minority owners can be entitled to additional payments from Allgreen but not share them with the majority owners.