Requirement

The revision of plot ratio for One Tree Lodge has stirred the owners’ interest in exploring a collective sale for their estate.  This was because the owners were likely to receive an amount that was estimated to be 40-50% above their individual selling price with the new plot ratio.

Colliers was approached by the sales committee to pitch for the appointment to market the development on behalf of the owners.

Challenge

A reserve price of 50% above market value was agreed upon by 80% of the owners. The bids received however fell short of the price. Colliers’ challenge was to persuade the owners to accept the new price.

The other challenge was to overcome objections from those  owners who claimed that the sale would cause financial loss to them. According to the Land Titles (Strata) Act, a sale may not take place if the minority owners were likely to suffer a financial loss.

It was through much persuasion that Colliers managed to convince the owners to sell their property at a price that was below their expectation. In addition, majority of the owners also consented to compensate the objector for his financial loss.

Despite the agreement to compensate the objector, the objector tried to claim for other expenses by bringing the case to the High Commission.

Result

After a 12-month process, the case was settled out of court. The development was eventually sold to Soildbuild for S$38.2 million.

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