By Ng Baoying, Channel NewsAsia Posted: 16 October 2009 1846 2009 1846 hrs
SINGAPORE : Owners of the Laguna Park estate along Marine Parade Road have failed to sell their properties in a collective sale.
According to the marketing agent, Credo, only two bids were received when the tender closed on Tuesday, but none were to the satisfaction of the sales committee.
The Laguna Park's collective sale tender raised many eyebrows when it was launched a month ago, because the owners wanted a whopping S$1.2 billion for their estate.
Many analysts thought the price was too high. As it turned out, the marketing agent said one local company, whose shareholders are based in Indonesia, more than matched the reserve price. The unnamed company, in fact, bid S$1.7 billion. But Credo said by Thursday evening, the firm decided to pull out because it could not get its bankers to provide the funds for the bid.
Credo said the second expression of interest came from a prominent local developer. MediaCorp understands the developer is now expected to further negotiate with the majority owners before settling on a firm price. For now, there is no deal from the tender process which has closed. Reactions from residents have been mixed. "I'm indifferent. It's God's will. It doesn't matter to me... I'm not disappointed, neither am I ecstatic," said Laguna Park resident Ng Beng Hong. "I'm very (upset) because we wasted so much time putting together the sales committee... And we'll have to redo this whole effort again the next time round again," said Mrs Liew, another Laguna Park resident.
Laguna Park owners are scheduled to meet on Sunday to discuss the failed tender. The next step is for majority owners to enter into any private treaty deal by December 19 before the collective sale agreement expires. If there is no deal by then, the entire collective sales process will have to be restarted again. - CNA /ls
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