After 22 years, a bid to reclaim land plot sold to Government
Monday • October 17, 2005
Valerie Law
[email protected]After acquiring a plot of land in Geylang under the Land Acquisition Act about 22 years ago from a private owner, the Singapore Land Authority has not made any changes to the acquired land, which was intended for a "public purpose" or redevelopment.
Now, the previous land owner, Teng Fuh Holdings, has decided to go to court to reacquire it from the Government through judicial review proceedings.
"Teng Fuh essentially wants a declaration for the order of the acquisition to be rescinded, and that the property be transferred back to the company as the rightful owner," said Mr Zaheer K Merchant of Messrs Madhavan Partnership, one of the lawyers representing Teng Fuh.
In response to questions from Today, a spokesperson for the Singapore Land Authority (SLA) confirmed that the land was acquired for a public purpose, namely for general development (Government Gazette dated Feb 26, 1983).
"The matter concerning Teng Fuh is now before the courts. As such, it would not be appropriate for us to comment on it Â… The State is represented in these proceedings by the Attorney-General's Chambers," she said.
Teng Fuh Holdings is willing to repay the dues on the land, which is the $4.2 million that the Government paid, subject to whatever further or other orders the Court may make, said Mr Merchant.
"What they are seeking is purely commercial relief in nature, pursuant also to their consultations with tax counsel," he added.
If successful, this will be the first time that a private enterprise has quashed an acquisition order and recovered its land from the Government.
Teng Fuh Holdings, a company established in 1977, is a holding company involved in the development of private residential properties such as Gallop Ridge, Balmoral Condominium and Holland Peak. It provides warehousing services on the Geylang site.
In Feb 1983, the Government acquired the land from Teng Fuh Holdings, stating it was needed for a "public purpose viz General Redevelopment".
Under the provisions of the Land Acquisition Act, compensation was awarded to the Teng Fuh on the basis of the market value of the land as at Nov 30, 1973, a value that was lower than the value of the land when the of acquisition was published.
After the land was acquired, it continued to be occupied by the company under a temporary occupation licence.
The land was included as a "Comprehensive Development Area" in the 1985 Master Plan, indicated as a "Residential" zone in the 1993 Kallang Development Guide Plan, and zoned as "Residential" in the 1998 and 2003 Master Plans.
"The land is still in its original physical state and nothing has been done to it herein," Teng Fuh wrote in its affidavit.
A single-storey warehouse property located 100 metres down the same stretch of road at No 398 Kallang Road was not acquired under the Act, and remains in private ownership.
"This is the first of its kind. It is unique in the sense that the Government has done nothing at all to the piece of land whereas in the other cases, the Government always did something for land acquired — be it for conservation purposes or for the widening of roads," said a source close to the deal.
For example, after it was acquired by the Government, Orchard Boulevard was widened, he noted
"The only change in this case seems to be converting an owner into a tenant. If the Government's plan is to redevelop the land for residential purposes, then Teng Fuh can also do it," he said.
According to Savills (Singapore) Pte Ltd, a property consultant acting for Teng Fuh, the fee for the company has been more than $21,000 per month from day one.
The total amount paid to the land authority is much higher than the amount the Government paid them. Today, the site is estimated to be worth about $80 million.
Mr Zaheer K Merchant and Ms Sophine Chin of Madhavan Partnership will represent Teng Fuh Holdings in Court tomorrow for the initial leave application hearing.
"A further date for the substantive hearing will be fixed if the initial application is granted by the Court," said Mr Merchant.
Mr Leung Yew Kwong and Mr Ong Sim Ho of Messrs Ong Sim Ho are the tax counsel for Teng Fuh.
