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Thread: Shop owners fight sale of Katong Mall

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    Default Shop owners fight sale of Katong Mall

    [url]http://www.channelnewsasia.com/stories/singaporebusinessnews/view/350095/1/.html[/url]

    [B][SIZE="5"]Katong Mall up for collective sale by tender[/SIZE][/B]

    Posted: 26 May 2008 1807 hrs


    SINGAPORE : Katong Mall is up for collective sale by tender.

    Under the Master Plan, the 99-year leasehold 78,158 square foot commercial development site has a gross plot ratio of up to 3.6, with an allowable building height subject to evaluation.

    It has the potential to be redeveloped into a commercial or retail development with a gross floor area (GFA) of up to 281,369 square feet, subject to relevant authorities' approval.

    To give developers more redevelopment options for the site, Outline Planning Permission has also been obtained for a mixed redevelopment of residential cum commercial development, with an approved plot ratio of up to 3.

    This translates to a permissible GFA of up to 234,474 square feet, and could yield up to some 100 residential and 185 commercial/retail units with an average size of 1,200 square feet and 400 square feet respectively.

    Sole marketing agent Jones Lang LaSalle said the tender will close at 3pm on June 25. - CNA/ms

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    Default Re: Katong Mall up for collective sale by tender

    [url]http://www.businesstimes.com.sg/sub/suite/story/0,4574,280905,00.html?[/url]

    Published May 27, 2008

    [B][SIZE="5"]Katong Mall up for sale with $220m-$250m tag[/SIZE][/B]

    By ARTHUR SIM


    KATONG Mall has been put up for collective sale at the indicative price of $220 million to $250 million.


    [SIZE="1"]Katong Mall: The 78,158 sq ft site could yield up to 100 residential and 185 commercial/retail units[/SIZE]

    The 78,158 sq ft site is zoned for commercial use and has a plot ratio of up to 3.6.

    According to marketing agent Jones Lang LaSalle (JLL), the strata-titled 258-unit mall can be redeveloped into a commercial or retail project with a gross floor area (GFA) of up to 281,369 sq ft, subject to official approval and payment of development charge if applicable.

    Based on this GFA, the unit land price works out to be between $782 and $888 per sq ft per plot ratio (psf ppr).

    JLL local director (investments) Stella Hoh estimates the site could yield up to some 490 commercial/ retail units of an average size of 400 sq ft.

    Ms Hoh also said outline planning permission has been obtained for a mixed residential and commercial development, with an approved plot ratio of up to 3.

    This translates to a GFA of up to 234,474 sq ft, subject to official approval and payment of development charge if applicable, and could yield up to 100 residential and 185 commercial/retail units of average sizes of 1,200 sq ft and 400 sq ft respectively.

    'This scheme would appeal to developers who are looking to capitalise on the demand for residential units in the established Marine Parade enclave,' Ms Hoh said.

    In September 2007 it was reported that a majority owner held 72 per cent of Katong Mall, with the rest divided among about 100 owners. It was also reported that some minority owners were unhappy about a collective sale.

    But Ms Hoh reiterated that 80 per cent approval for the collective sale has been received.

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    Default Re: Katong Mall up for collective sale by tender

    [url]http://www.straitstimes.com/Money/Story/STIStory_241486.html[/url]

    May 27, 2008

    [B][SIZE="5"]Katong Mall on sale for up to $250m - amid controversy[/SIZE][/B]

    [B]Public tender comes after a contentious collective sale approval last year[/B]

    By Jessica Cheam


    ONE of the landmarks of the east, Katong Mall, was put up for sale yesterday at an indicative price of $220 million to $250 million - amid some controversy.

    The 99-year leasehold property comprises strata-titled commercial units used as shops and other businesses.

    But the site can be rebuilt into a mixed development comprising residential and commercial units, said its marketing agent Jones Lang LaSalle (JLL).

    Its public tender comes after a contentious collective sale approval process in September last year.

    About 35 minority owners claimed they were not consulted in the drawing up of the sale agreement, and that the sale process was conducted under the old rules and not the new, stricter ones that took effect in October.

    They also complained of a low reserve price, and said some majority owners had a potential conflict of interest as they were property developers - Nustavino and Habitat Properties - that could bid for the property.

    Whether the consent of owners representing 80 per cent of the share value required for the sale had been obtained was also called into question yesterday.

    One minority owner, Mr Robert Ong, told The Straits Times that five owners had withdrawn their signatures before the new laws kicked in on Oct 4.

    'This means the signatures collected could have fallen below the 80 per cent threshold,' he said.

    When contacted, JLL's local director for investments, Ms Stella Hoh, said that the firm had the 80 per cent level to proceed with the sale.

    On the conflict of interest issue, she said that even if the sale committee members were developers by trade, they were legally allowed to bid as long as they declared their position.

    They would not take part in the tender decision-making and voting process, she added.

    'We believe this site will attract a lot of parties despite the current market, given that there are few private land sites for sale in this area.'

    The four-storey mall has a land area of 78,158 sq ft with a gross plot ratio of 3.6. This works out to a gross floor area of 281,369 sq ft - an indicative sale price of $782 per sq ft (psf) to $888 psf per plot ratio.

    Developers have an extra option: JLL said it has also obtained outline planning permission for a mixed development with an approved plot ratio of three - a gross floor area of up to 234,474 sq ft. This is subject to the relevant authorities' approval and payment of a development charge.

    Located at the junction of East Coast Road and Joo Chiat Road, the project could yield about 490 commercial units of 400 sq ft each, or 100 residential homes and 185 commercial units of 1,200 sq ft and 400 sq ft, respectively.

    Savills Singapore director (business development) Ku Swee Yong said the site was an attractive location, with an increasing population catchment with upcoming condominiums nearby.

    'But given the current market, it remains to be seen whether there will be takers.'

    Meanwhile, all eyes will be on the results of the public tender, which closes at 3pm on June 25.

    [email][email protected][/email]

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    Default Tuan Sing seeks stake in Katong Mall

    [url]http://www.businesstimes.com.sg/sub/companies/story/0,4574,281677,00.html?[/url]

    Published June 2, 2008

    [B][SIZE="5"]Tuan Sing seeks stake in Katong Mall[/SIZE][/B]

    By ARTHUR SIM


    TUAN Sing Holdings, which is looking to divest its hotel assets, is seeking a stake in Katong Mall, which was put up for collective sale last week.

    In a statement released over the weekend, Tuan Sing said that it is looking to dispose of $107 million in loans it had extended to its associate Gul Technologies Singapore (Gul Tech) through an asset swap with the controlling shareholders of Tuan Sing for certain strata units in Katong Mall.

    The asset swap will involve 129 strata shop units at Katong Mall with an aggregate purchase consideration of about $63.1 million. This was arrived at based on the aggregate value of the properties of $130.1 million, representing 70 per cent of the open market value of Katong Mall, but less outstanding borrowings of $66 million and rental deposits and advance rental of about $1 million, which will be retained by the vendors.

    The purchase consideration will be satisfied by Tuan Sing and certain of its subsidiaries novating the Gul Tech loans in favour of the vendors of the Katong Mall units, which are companies under the controlling shareholders of Tuan Sing. This is subject to a $44 million loan waiver by the controlling shareholders.

    Tuan Sing said that the proposed assets swap would be beneficial as it allows the company to secure a 'realistic and tangible recovery of the loans, albeit that Tuan Sing would have to recognise a partial write-down of the loans'.

    It will also transform Gul Tech's equity from a negative to a positive net asset position with the controlling shareholders waiving about $44 million of the loans.

    Tuan Sing said that it had already made provisions for the loans in prior years, and estimated that the net effect of the partial writedown on equity is about $0.7 million.

    The company also said that it planned to dispose of its 50 per cent held hotel assets worth about A$615 million (S$799 million) to third parties as and when opportunities arise.

    Tuan Sing will hold two separate extraordinary general meetings on June 16, 2008, to seek shareholders' mandate for the two transactions.

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    Default Shop owners fight sale of Katong Mall

    [url]http://www.straitstimes.com/Singapore/Story/STIStory_294197.html[/url]

    October 24, 2008 Friday

    [B][SIZE="5"]Shop owners fight sale of Katong Mall[/SIZE][/B]

    [B]18 file protest against en bloc sale, alleging it was done in bad faith[/B]

    By Melissa Sim & Seow Kai Lun


    AT LEAST 18 shop owners in Katong Mall have filed objections to a $219 million collective sale of the East Coast Road complex.

    The owners, some of whom do not want to move from the mall, lodged a protest last month with the Strata Titles Board (STB), which deals with en bloc applications.

    Property group Tuan Sing Holdings bought the mall, which has 256 units, in June.

    It was one of the few collective property deals this year in a market that has been hit by the economic slowdown and rising building costs.

    The shop owners are contesting the sale, though, saying proper procedures were not followed and the deal was conducted in bad faith.

    Key among their concerns is that the two companies that owned 72 per cent of the mall, Golden Cape Investments and Megaton Investments, are wholly owned by buyer Tuan Sing Holdings.

    When the mall went on the market in June, there were two bids - the lower one came from Tuan Sing-owned Golden Cape.

    Although both were above the reserve price of $180 million, the property consultants were asked to negotiate better terms.

    Golden Cape eventually increased its offer to $219 million.

    While the final bid was almost $40 million above the reserve price, unit owner Jeanette Aruldoss said she is fighting the sale as 'a matter of principle'. The 45-year-old said the deal was struck in bad faith.

    But Ms Stella Hoh, a local director at Jones Lang LaSalle, which handled the sale, said proper procedures were followed.

    Store owners also complained the sales committee did not have the 80 per cent majority needed to approve the deal by Oct 4 last year.

    New collective-sale rules kicked in islandwide that day, which meant the whole process would have been scuttled if the 80 per cent threshold had not been reached.

    But Ms Hoh said the committee had 80 per cent support.

    Tuan Sing declined comment when approached by The Straits Times.

    The STB said the collective sale is scheduled to undergo mediation beginning on Nov 10.

    [email][email protected][/email]

    [email][email protected][/email]

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    [url]http://www.straitstimes.com/Singapore/Story/STIStory_294198.html[/url]

    October 24, 2008 Friday

    [B][SIZE="5"]Tenants left in limbo[/SIZE][/B]


    THE battle surrounding the collective sale of Katong Mall has left the complex's stable of enrichment, tuition and music centres in a state of limbo, business owners told The Straits Times.

    While the mall has been sold for $219 million, several minority owners are contesting the deal, making the future uncertain for the building's 28 education-related businesses.

    'Although the place has been sold, nothing has been said to us,' said Mr Richard Lau, a sales manager at X'clusiv Interior, which moved to the mall in July.

    The Straits Times spoke to 20 businesses, which said they would take a wait-and-see approach to finding a new location. Standard leases give most tenants up to six months to vacate the premises. But some fear they will be unable to find similar units for the same rentals at nearby malls, such as Parkway Parade.

    Despite the uncertainty, some businesses have renewed their existing leases - such as Tien Hsia Language School and confectionery Awfully Chocolate - while others have inked new ones.

    But a few are looking elsewhere.

    As soon as the deal was announced in July, Ms Tan Poh Ling, 40, began scouting for an alternative location for her studio, The Ballet and Music Company.

    'All I know is what the papers have reported. So I was worried initially and started hunting,' she said.

    Some parents are concerned that they will be left in the lurch if enrichment centres close shop. That has prompted them to look for other options.

    Business owner Loo Weng Lin, 36, who has a daughter enrolled at a mathematics tuition centre, fretted about a move. 'I finally found a good tuition centre here where my child is improving. Where will I send my child if the centre closes or moves far away?'

    Madam Linda Low, whose daughter attends several enrichment centres in Katong Mall, said the location is ideal.

    The 46-year-old office assistant said: 'It would be very inconvenient if the centres were to move to locations in different parts of Marine Parade.'

    SEOW KAI LUN

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    Basically the journalists are sensationalising this molehill of a story. It will drag on at least another 6 to 9 months at STB and by then Tuan Sing would have no more stomach to redevelop Katong Mall into something else. The global recession will be in full force and Tuan Sing will realise that they have paid 30% too much !!!! Maybe they will not even be able to find financing for their adventure!

    I figure the only thing Tuan Sing can do is to squeeze the less savy and uninformed tenants into paying more for their lease.

    I hope the bright spark at Tuan Sing who initiated this buy will be shitting bricks now....Hahahahaha!!!

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