Gillman Heights Sale Finally Completed

Source : The Business Times, May 23, 2009

CapitaLand unit to develop site into 1,000-unit condo

THE $548 million sale of Gillman Heights Condominium to Ankerite Pte Ltd, a subsidiary of CapitaLand, was completed yesterday, the developer said in a statement. Ankerite will redevelop the site into a condominium with about 1,000 apartments.

The sale was not completed by the previous deadline of May 15, leading to some speculation that the collective sale might be off. But lawyers for the buyers and sellers quickly clarified that they were looking at the new deadline of May 22 instead.

The sale of the 99-year-leasehold estate on Alexandra Road dragged on for two years since the deal was first inked in 2007. The sale of Gillman Heights finally got the go-ahead this February after the Court of Appeal dismissed a last-ditch plea by minority owners to overturn the deal.

But last week, last-minute hurdles emerged.

One sticking point was the transfer of $750,000 from the management corporation's (MCST) management fund to the sinking fund in August 2007 and March 2008, which was discovered during the due diligence exercise.

The lawyers for the buyers wanted the transfer reversed. That issue, and a separate suit by a local contractor against the MCST, were both eventually resolved - clearing the way for the sale to go through.

Earlier reports had indicated that owners of the estate's 607 units stood to receive between $870,000 and $950,000 for their apartments.