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Home > Breaking News > Singapore > Story
Feb 20, 2009
Buyer backs out enbloc sale
Developer cites poor market conditions for 11th-hour decision
By Joyce Teo
Owners of Cairnhill Heights will now get their share of the forfeited deposit, after deducting for expenses. -- ST FILE PHOTO
A DEVELOPER has backed out of a planned $44 million purchase of an enbloc sale site in the prime Cairnhill area at the 11th hour - sparking anger from some of the home owners.
The firm, Jewel 1, blamed 'difficult, uncertain and deteriorating market conditions' for its decision to pull out of buying Cairnhill Heights.
The move came just 20 days before the deal to buy the 19-unit condo was due to have been completed on Feb 24, the condo's sales committee said yesterday. The developer, wholly owned by one shareholder, will have to forfeit its 5 per cent deposit of $2.2 million.
'This really feels like a stab in the back. Where is the good faith?' said one owner, also a sales committee member, who declined to be named.
The decision came despite a protracted legal battle in which Jewel fought for the right to buy the site.
The developer outlined its decision in a letter to the lawyer involved in the proposed sale.
Three sale committee members told The Straits Times they felt let down by the developer, as they regarded the firm as a partner in a deal that they had robustly defended against all challenges, believing it was a reputable property developer.
Jewel 1, which was registered in 2006, has only one shareholder and director - Mr Cheong Sim Lam. He was not available for comment.
Mr Cheong's family owns Hong Fok Realty, and he is the uncle of SC Global chief Simon Cheong.
He had agreed to buy Cairnhill Heights in May 2007, at the height of the property boom and amid a frenzy of collective sale deals.
Read the full story in Friday's edition of the Straits Times.
Feb 20, 2009
Buyer backs out enbloc sale
Developer cites poor market conditions for 11th-hour decision
By Joyce Teo
Owners of Cairnhill Heights will now get their share of the forfeited deposit, after deducting for expenses. -- ST FILE PHOTO
A DEVELOPER has backed out of a planned $44 million purchase of an enbloc sale site in the prime Cairnhill area at the 11th hour - sparking anger from some of the home owners.
The firm, Jewel 1, blamed 'difficult, uncertain and deteriorating market conditions' for its decision to pull out of buying Cairnhill Heights.
The move came just 20 days before the deal to buy the 19-unit condo was due to have been completed on Feb 24, the condo's sales committee said yesterday. The developer, wholly owned by one shareholder, will have to forfeit its 5 per cent deposit of $2.2 million.
'This really feels like a stab in the back. Where is the good faith?' said one owner, also a sales committee member, who declined to be named.
The decision came despite a protracted legal battle in which Jewel fought for the right to buy the site.
The developer outlined its decision in a letter to the lawyer involved in the proposed sale.
Three sale committee members told The Straits Times they felt let down by the developer, as they regarded the firm as a partner in a deal that they had robustly defended against all challenges, believing it was a reputable property developer.
Jewel 1, which was registered in 2006, has only one shareholder and director - Mr Cheong Sim Lam. He was not available for comment.
Mr Cheong's family owns Hong Fok Realty, and he is the uncle of SC Global chief Simon Cheong.
He had agreed to buy Cairnhill Heights in May 2007, at the height of the property boom and amid a frenzy of collective sale deals.
Read the full story in Friday's edition of the Straits Times.
