Monday, May 18, 2009

Gillman glitches all ironed out

LAST-minute hitches threatening the $548-million Gillman Heights en bloc sale appear to have been solved for now.

Lawyers representing the CapitaLand-led consortium, named Ankerite, buying the 607-unit estate stressed their client had “every intention of completing the purchase”, probably as early as Friday.

This, after estate owners voiced concern the consortium may be finding excuses to back out of the deal by raising issues related to the condo’s funds and an arbitration claim filed against the condo’s management corporation (MCST).

Lawyers for both parties are working towards completing the purchase by Friday, said a CapitaLand spokesperson.

The en bloc sale was due to be completed by May 15 after the Court of Appeal had dismissed a last-ditch attempt by minority owners to overturn the transaction in February.

According to earlier reports, owners stood to receive between $870,000 and $950,000 each for their units upon completion of the sale.

But the transaction stalled after Ankerite’s lawyer Rajah & Tann wrote to Gillman’s sales committee on April 30 querying the transfer of $750,000 from MCST’s management fund to its sinking fund.

Ankerite also had issues with an outstanding arbitration claim by the liquidator of a contractor for the estate.

In a media statement yesterday, Rajah & Tann said the outstanding issues have been resolved after the MCST’s management council placed the amount back into the management fund, and annulled resolutions for the money transfers.

Rajah & Tann also received, on Saturday, a copy of the settlement agreement between the lawyers of the MCST and the contractor.

Source: Today, 18 May 2009

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