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Thread: Confirmed: Tulip Garden's en bloc sale to Bravo rescinded

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    Default Confirmed: Tulip Garden's en bloc sale to Bravo rescinded

    [SIZE="5"][B]Owners say enbloc sale of Tulip Garden has been called off[/B][/SIZE]

    By Ng Baoying, Channel NewsAsia | Posted: 07 April 2008 2353 hrs


    SINGAPORE: The enbloc sale of Tulip Garden, a freehold development in District 10, appears to be off.

    Tulip Garden was sold in July 2007 in a collective sale valued at S$516 million. The property is along the prime Holland Road and Farrer Road area.

    Channel NewsAsia understands that owners are now waiting to hear more details from the developer.

    Bravo Building Construction bought Tulip Garden at more than S$1,000 per square foot and the sale was scheduled to be completed by May.

    However, earlier reports stated that Bravo Building Construction was delaying the completion date and there was some talk that it was trying to arrange for alternative financing.

    Some owners of Tulip Garden have already received their share of the deposit for the sale.

    According to earlier reports, Bravo Building Construction has called off another enbloc sale - that of Makeway View in the Newton area and is also said to be delaying the completion date of the sale of Pender Court off West Coast Highway. - CNA/vm

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    gg liao lor

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    Quote Originally Posted by mr funny
    [SIZE="5"][B]Owners say enbloc sale of Tulip Garden has been called off[/B][/SIZE]

    By Ng Baoying, Channel NewsAsia | Posted: 07 April 2008 2353 hrs


    SINGAPORE: The enbloc sale of Tulip Garden, a freehold development in District 10, appears to be off.

    Tulip Garden was sold in July 2007 in a collective sale valued at S$516 million. The property is along the prime Holland Road and Farrer Road area.

    Channel NewsAsia understands that owners are now waiting to hear more details from the developer.

    Bravo Building Construction bought Tulip Garden at more than S$1,000 per square foot and the sale was scheduled to be completed by May.

    However, earlier reports stated that Bravo Building Construction was delaying the completion date and there was some talk that it was trying to arrange for alternative financing.

    Some owners of Tulip Garden have already received their share of the deposit for the sale.

    According to earlier reports, Bravo Building Construction has called off another enbloc sale - that of Makeway View in the Newton area and is also said to be delaying the completion date of the sale of Pender Court off West Coast Highway. - CNA/vm
    Its another horse-racing circuit,filled with racing thrills, the finishing line and the making sense of loose-ends. Time to escape the past, by not picking up the old to rediscover the new.Time also to escape the enbloc embroilment? Time to pack on the kgs.Time to be at a wonderful place-by not carrying the enbloc baggage!

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    Default Re: Owners say enbloc sale of Tulip Garden has been called off

    Published April 8, 2008

    [B][SIZE="5"]Tulip Garden en bloc may be called off[/SIZE][/B]

    [B]Buyer Bravo will 'accept costly missed opportunity' if it's not granted payment extensions[/B]

    By KALPANA RASHIWALA


    (SINGAPORE) The owners of Tulip Garden met over the weekend and BT understands that most of them have taken the view to rescind the $516 million collective sale to an associate company of Bravo Building Construction - if the second 5 per cent instalment due to them is not paid by the deadline of midnight yesterday.

    BT understands the owners could not accede to the Bravo unit's request for another extension to pay up the second 5 per cent instalment which was to have been paid yesterday, to June 7, as well as to extend the completion date of the transaction, which is when it would have to pay up the remaining 90 per cent of the purchase price, from May 28 to Aug 7.

    However, Tulip Garden's owners, through their lawyers, are understood to have informed Bravo yesterday that the payment deadline will not be extended and that they reserve their rights to rescind the sale.

    A Bravo spokeswoman said yesterday the consortium buying Tulip Garden is seeking an 'unconditional extension of time' for making the two payments, that is, it is not prepared to make any further payment to the sellers in exchange for the extensions, until June 7.

    If the sale is rescinded, Tulip Garden owners will keep the $25.8 million or 5 per cent of the purchase price they had been paid so far, BT understands.

    'If these extensions are not obtained, the consortium will accept this costly missed opportunity to develop a stunning 350-unit condo with unmatched features in a prominent Holland Road corner,' Bravo said in a statement.

    Bravo has a minority stake in the consortium buying Tulip Garden. The en bloc sale of Tulip Garden was approved by Strata Titles Board in February.

    In its statement, Bravo said that it and its majority consortium partners for the purchase of Tulip Garden intend to complete the purchase. Bravo did not identify the consortium partners. 'Since December 2007, major foreign institutional investors and a few local investors have expressed strong interest to form the consortium. The current turmoil in financial and stock markets matched with sporadic bad news have caused unforeseen delays in securing ultimate approvals to commit funds,' Bravo said in its statement.

    Bravo also indicated that approval for Tulip Garden's sale from Strata Titles Board in February came earlier than anticipated. 'Coupled with the consortium's strategic decision to significantly increase equity to balance the current cautious lending by banks, the current deadlines for next payments have become too constricted and no longer practical,' it added.

    BT understands that Tulip Garden owners declined to further extend the completion date of the sale of Tulip Garden as the STB had already given its order for the sale, binding all owners to a sale, and the sales committee does not have the powers to vary the completion date of the sale beyond the originally agreed May 28. The date was based on three months from receiving the STB order for sale, as stipulated in the sale and purchase agreement for Tulip Garden inked last year.

    Assuming Tulip Garden's sale is rescinded, it may be a while before the prime District 10 site is back on the en bloc bandwagon. If owners wish to do a fresh en bloc sale, they would have to do it under revised collective sales rules that took effect in October last year and which are more stringent.

    The $516 million deal for the property worked out to a unit land price of $1,018 psf per plot ratio. No development charge is payable.

    Last month, the $162.8 million collective sale of Makeway View in the Newton area to another associate of Bravo was rescinded. BT reported that one per cent of purchase price paid by Bravo so far was forfeited.

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    Default Re: Owners say enbloc sale of Tulip Garden has been called off

    April 8, 2008

    [SIZE="5"][B]Tulip Garden sale off? How the deal went[/B][/SIZE]

    [B]Condo owners likely to call off $516m en bloc deal after developer misses payment deadline[/B]

    By Joyce Teo, Property Correspondent


    THE $516 million collective sale of Tulip Garden condominium near Holland Road seems to be dead in the water after the developer missed a payment deadline yesterday.

    The condo owners appear poised to formally call off the deal and pocket a cool $25.8 million - the original 5 per cent deposit paid by developer Bravo Building Construction.

    Bravo would forfeit the sum if the deal is scrapped. That would mean each of the 164 unit owners could pocket more than $100,000 on average.

    The cancellation of a collective sale because of a cash crunch is a rare event. Bravo and its partners say they have had trouble raising the necessary funds.

    Earlier this year, the $162.8 million collective sale of Makeway View in the Newton area was ditched by an associate of Bravo. The firm said a higher-than-expected development charge was the reason for backing out. A deposit of $1.63 million was reportedly forfeited.

    Last Saturday, Tulip Garden owners held a meeting and indicated in an informal show of hands that they wanted to cancel the sale if Bravo missed the latest payment, also $25.8 million. This payment had already been delayed at Bravo's request from the middle of March.

    By late yesterday, no payment had been made. Bravo was putting on a brave face but it was, in effect, accepting that the deal appeared to have been lost.

    The developer had asked for more payment extensions - to make the next 5 per cent payment by June 7 and then complete the deal by Aug 7.

    But based on last Saturday's meeting, the owners appear unlikely to agree.

    Almost all the owners at the meeting indicated that they wished to call off the sale and keep the deposit if Bravo did not pay up by yesterday, according to the people present.

    A Bravo spokesman said yesterday that the firm is now seeking an 'unconditional' extension of time.

    'If these extensions are not obtained, the consortium will accept this costly missed opportunity to develop a stunning 350-unit condo with unmatched features in a prominent Holland Road corner,' she said. The condo is on the corner of Holland Road and Farrer Road.

    Bravo inked a deal to buy the freehold site in July last year. It was due to have been completed late next month.

    The Bravo spokesman said the firm has been seeking partners since November last year.

    'The current turmoil in the financial and stock markets matched with sporadic bad news have caused unforeseen delays in securing ultimate approvals to commit funds,' said Bravo. It added that the Tulip Garden owners had consented to the sale earlier than anticipated.

    'Coupled with the consortium's strategic decision to significantly increase equity to balance the current cautious lending by banks, the current deadlines for next payments have become too constricted and no longer practical,' it said.

    Bravo added that it has tied up with two local and two foreign parties to buy Tulip Garden. But unless an extension is given, they will not be offering more money, said the spokesman.

    She said that if Tulip Garden owners still want to attempt to sell en bloc, they may face an 'unwelcome lower bid price' given weaker market conditions.

    Tulip Garden sold for about $1,018 per sq ft (psf), more than its earlier guide price of $900 psf in January last year. The development has 164 units comprising 96 flats, 66 maisonettes and two shophouses.

    If the sale works out, flat owners stand to reap $2.5 million to $4.2 million while maisonette owners would receive about $3.4 million each. The shop units would get about $1.1 million each.

    Amid last year's booming market, Bravo also made two other fairly large collective sale deals: Pender Court, off Telok Blangah Road, at $80 million in July last year, and Makeway View.

    Bravo has postponed the completion of Pender Court's sale until late this month.

    Given the slower market, more sellers are now open to lower prices. Yesterday, Royalville, a freehold mixed development off Sixth Avenue, was relaunched for sale en bloc at a lower indicative price of around $305 million.

    It was offered for sale in a Nov 9 tender, which failed to attract bidders at its earlier guide price of $330 million to $350 million.

    [email][email protected][/email]



    [B]How the deal went[/B]

    July 2007: Bravo Building Construction decides to buy Tulip Garden en bloc for $516 million. It later pays a 5 per cent deposit of $25.8 million.

    February 2008: The Strata Titles Board approves the sale. The sale completion date is set for May 28.

    March 13: Bravo is due to pay another $25.8 million, but asks for - and is granted - an extension of time until yesterday.

    March 18: Bravo asks to extend the payment deadline from yesterday until May 5. It also asks to set back the sale completion date from May 28 to July 23.

    March 24: Before agreement for its earlier requests can be given, Bravo asks for further extensions of time to pay by June 7, instead of yesterday, and to complete the sale by Aug 7, instead of May 28.

    April 5: Owners indicate in an informal show of hands to cancel the sale and take the $25.8 million deposit if Bravo misses the payment deadline yesterday.

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    Quote Originally Posted by Unregistered
    Its another horse-racing circuit,filled with racing thrills, the finishing line and the making sense of loose-ends. Time to escape the past, by not picking up the old to rediscover the new.Time also to escape the enbloc embroilment? Time to pack on the kgs.Time to be at a wonderful place-by not carrying the enbloc baggage!
    Agreed. Farewell. Don't have to keep playing the "harp."The next enbloc play the "harmonica."

    Its " S P A C E " "WITHOUT" " BOUNDARIES" for the "T U L I P S"

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    "Some owners of Tulip Garden have already received their share of the deposit for the sale."


    Sounds like there will be high serious consequences here, because LEE & LEE vividly told the owners that the money will only be paid to the owners after deduction off all the FEES? They don't know what needs to be deducted yet. This sentence also implies that the SALES COMMITTEE gave preference to some owners?

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    Default Re: Owners say enbloc sale of Tulip Garden has been called off

    Quote Originally Posted by Unregistered
    Agreed. Farewell. Don't have to keep playing the "harp."The next enbloc play the "harmonica."

    Its " S P A C E " "WITHOUT" " BOUNDARIES" for the "T U L I P S"
    I missed the opportunity to buy an unit at 500psf back in 2003. I am gald that the possibility is still alive and kicking. My agent told me that I may be able to get it in 2 years time when the oversupply situation develops.

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    Cool Re: Owners say enbloc sale of Tulip Garden has been called off

    Quote Originally Posted by Unregistered
    I missed the opportunity to buy an unit at 500psf back in 2003. I am gald that the possibility is still alive and kicking. My agent told me that I may be able to get it in 2 years time when the oversupply situation develops.

    I seriously doubt the price will drop that low.

    Just look at WORLDWIDE inflation. Even if the real value of the property drops, its INFLATED value in 2 years time will at least be what it is today.

    Other pros (e.g. increased immigration) and cons (sub-prime related problems) being disregarded on the basis that they cancel each other out.

    To counterack the above, you may want to invest your cash in bonds or stocks first, if you are not yet in a hurry to buy property.

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    Default Re: Owners say enbloc sale of Tulip Garden has been called off

    Quote Originally Posted by Analyst
    I seriously doubt the price will drop that low.

    Just look at WORLDWIDE inflation. Even if the real value of the property drops, its INFLATED value in 2 years time will at least be what it is today.

    Other pros (e.g. increased immigration) and cons (sub-prime related problems) being disregarded on the basis that they cancel each other out.

    To counterack the above, you may want to invest your cash in bonds or stocks first, if you are not yet in a hurry to buy property.
    Well it could happen again. Remember 1996 when price was up there no one believed it could come down that low....so its a possibility.

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