SINGAPORE – In a stunning legal dispute, a hotel developer is seeking nearly $6 million in damages from 30 unit owners of a condominium located on Killiney Road.

The accusation? Their property is allegedly encroaching into the developer's land, slated for a new hotel construction.

Contention Over Boundary Wall

The contention centers on a strip of boundary wall that reportedly extends beyond the designated boundary into the hotel developer’s freehold property. This includes encroachment involving up to 1.6 cm of steel reinforcing bars and 4 cm of the surrounding cement.

Background of Encroachment

Initially, the encroachment was more severe, affecting a substantial 35-meter stretch of concrete that originated from the Killiney 118 condominium, with depths ranging from 10 cm to 20 cm. Although some rectification work has been completed, court documents reveal that 1.94 sq m of land remains in dispute.

Losses and Claims by the Developer

The hotel developer, Lucrum (Killiney) Hotel and Lucrum (Killiney) Commercial, owners of properties at 110 and 112 Killiney Road, allege that this encroachment has delayed their hotel development plans for 180 days, leading to losses exceeding $4.5 million. Additionally, they claim a reduction in property value amounting to $1,075,000 due to the encroachment of 36.22 sq m of valuable gross floor area, further compounded by $472,102 spent on rectification efforts.

Timeline of Events

Surprisingly, this lawsuit comes more than a decade after the completion of the freehold Killiney 118 condominium in 2013 and five years after the hotel developers purchased the adjacent Tai Wah Building in 2017, which they subsequently demolished in 2019 to pave the way for their ambitious hotel project.

Management Corporation's Defense

In a legal twist, the Management Corporation Strata Title (MCST) of Killiney 118, which has denied responsibility for the encroachment, argued that they were formed only after the condominium's completion. They attribute the encroachment to the original developer, Creslin, a now-defunct subsidiary of Amara Holdings.

Arguments from the MCST

Represented by an array of legal minds from Lee & Lee, the MCST asserts that the so-called "concrete backfill" used was a standard construction measure necessary to prevent water damage and maintain the structural integrity of both the Killiney 118 and the adjacent property.

Visibility and Time-bar Arguments

Adding another layer to the drama, the MCST contends that the encroachment, amounting to a mere 0.59 percent of the total land area, should not come as a shock since it was "clearly visible" during the 2019 demolition. Moreover, they argue that the claims are time-barred under the Limitation Act, which has a six-year limit for such disputes.

Upcoming Court Proceedings

As both parties prepare to return to court for a case conference in December 2024, tensions remain high. The hotel, a seven-story Mama Shelter Singapore Orchard, is under construction and being marketed for $195 million, with expectations to welcome its first guests in early 2025.

Impact of the Legal Dispute

The stakes are high as this legal confrontation not only impacts the developers and condo owners but also threatens to influence the future landscape of hospitality in Singapore.

Stay Tuned!

Stay tuned as this story unfolds! What will be the outcome of this gripping legal saga that pits condominium residents against a high-stakes hotel venture?