Mount Sophia sub-tenants in fix
15 of them told to move out despite some having spent a tidy sum doing up their units
By Mavis Toh
The Enesis Art gallery at 7 Mount Sophia has been asked to vacate the premises despite its owner, Mr Chin, having spent about $500,000 to do up the place. Mr Chin's two-year lease was to expire only next June. -- ST PHOTO: AZIZ HUSSIN
ART collector Ivan Chin spent half a million setting up his gallery - putting in landscaping, chandeliers, security and sound systems - only to be told four months later that he had to vacate the premises.
He is one of 15 sub-tenants of 7 Mount Sophia who have to go because the master tenant of the site, Westminster Unicampus, breached its tenancy agreement with the Singapore Land Authority (SLA).
Mr Chin's Enesis Art gallery was to house 55 pieces from his own collection, including one by Picasso, reportedly worth an eight-figure sum.
His two-year lease, at a rental rate of $20,000 a month, was to expire only next June.
Westminster's own 22-month lease with the SLA - to use the site as an arts, dance and drama studio - expired on Dec 27.
The SLA said that Westminster, a company registered to conduct distance learning courses, sublet some 60 per cent of the space for commercial usage - in breach of the agreement that it should be no more than 20 per cent.
Not only did Westminster refuse to remedy the breaches, it also sublet the premises to be used as a student hostel.
In addition, it had rental arrears and interest on late payments which amounted to over $136,000.
When The Straits Times visited the former Trinity Theological College site on Tuesday, most of the units were vacant.
The four businesses still in operation said they had been given till the end of the month to move out. Two of their leases had ended in December.
All said that Westminster had given them the impression that their leases would be renewed after two years, and so they had pumped in at least five-figure sums to do up their units.
'If we had known of the situation, we wouldn't have moved in in the first place. It's disruptive for the business,' said a manager of Polystone, a company selling stone products.
Director Barry Hill of office design firm Davenport Campbell said that two previous tenants - a bar and media school - moved out after pumping in large sums, when they discovered that the land was not authorised for such use.
When contacted, Westminster's director Tan Eng Hong said his original intention was to be at Mount Sophia longer and to build a multi-faculty and multi-campus institution.
When asked why he broke tenancy rules and rented out space to businesses, he said that he had made submissions for the change of use of the site but was not able to get them.
'We should have gotten the permit first before leasing it out, but it took us quite long to get everything in place,' said Mr Tan.
The SLA has also started legal proceedings to recover possession of the site, as Westminster has refused to vacate it. It said it would tender out the site again, for approved uses. The Straits Times understands that the site, a national monument, is slated for the creative and artistic industry.
The SLA also said that sub-tenants of state properties should do due diligence checks, and seek it's written consent, as well as legal advice, before signing any sub-tenancy agreements.
For now, Mr Chin hopes that the SLA will let remaining tenants stay till the next master tenant takes over.
'We've already spent so much money on the place, it would be best if I could stay rather than move my pieces to a warehouse,' he said.
mavistoh@sph.com.sg
Rent owed to SLA for another site
WESTMINSTER Unicampus was also in the news recently when it defaulted on its rent to the Singapore Land Authority (SLA) on another site - the former Queenstown Neighbourhood Police Centre at 15 Commonwealth Avenue.
It was announced in 2007 that it had submitted the highest bid to pay a monthly rent of $55,888 for the site.
Westminster was to use the building for an arts, dance and drama studio, an association, and a martial arts and fencing school.
None of this materialised.
Not only did it default on its rental payments - accumulating arrears and late payment interest of more than $184,000 - it also carried out unauthorised renovations.
Westminster sub-let the place, which became an unauthorised canteen and food outlet. It also demolished the toilets on all three storeys of the building, removed the entire front wall of the first storey and set up a 300 sq m shelter.
SLA terminated the tenancy last May, but gave Westminster several opportunities to pay the arrears and remove the unauthorised structures.
Westminster failed to comply and refused to vacate the premises. Last August, SLA got a court order to recover the property.
When asked about the site, Westminster's director Tan Eng Hong would only say: 'It's an investment that has gone sour and we're not able to carry on within our ability.'
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