Disclaimer






"I am a BLOGGER NOT an expert. This is a BLOG not a 'go-to' website for official information. I represent no one's view save my own. I have neither legal nor financial training, nor do I have anything to do with the real estate industry. My understanding of the Collective Sale Process is from a layman's position only. My calculations, computations and tables are homespun and may contain errors. Please note that nothing in this blog constitutes any legal or financial advice to anyone reading it. You should refer to your lawyer, CSC or financial adviser for expert advice before making any decision. This disclaimer is applicable to every post and comment on the blog. Read at your own risk."
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There is one thing worse than an Enbloc ----- and that is an Enbloc done badly. Since the majority have the necessary mandate to sell, then they owe it to all SPs to make a success of it. Minority SPs can only watch and wait, if they sell then lets pray it's at a price we can move on with, if they don't sell, then we are happy to stay for a few more years.

THE FACTS ABOUT TC

2005

Dec - Self-appointment of pro-tem En Bloc Committee
Dec - Informal valuation $389,719,233.00

2006
11 Feb - 1st Dialogue session
25 Feb - 2nd Dialogue session
19 April - Draft CSA and cover letter received by owners
14 May - CSA Dialogue session
05 May - First signing of CSA
15th/20th/21st/ 27th May 2006 - CSA signing
09 July - Dialogue session
15 July - CSA Dialogue session
29 July - Update by pro-tem committee tagged after the AGM
05 Aug - Dialogue Session
12 Aug - Dialogue session 
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NEVER SAW THE SC AGAIN UNTIL AFTER THE SALE>>>
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2007
21 January - purported 80% threshold reached
23 January - Press Release:- Sea Breeze apartments sold for $53.8 million
The Sea Breeze apartments on Joo Chiat Road have been sold for $53.76 million, which marketing consultant Jones Lang LaSalle (JLL) believes to be the highest price yet achieved in the area.
At the transacted price, the 56,376 sq ft site, which has a plot ratio of 2.1, sold for approximately $454 psf per plot ratio (ppr). There is no development charge payable, as a result of the high baseline.
Sea Breeze was sold to Grovehill Pte Ltd, whose directors are linked to the Tiong Aik Group whose last project was the 120-unit The Inspira at Arnasalam Chetty Road.
Sea Breeze can be redeveloped into an 88-unit condominium with a gross floor area of 118,391 sq ft.
JLL regional director and head of investments Lui Seng Fatt said that owners of the existing 56-unit apartments enjoyed a 50 per cent premium over current market prices.
The new development could be launched at an average price of between $850 and $900 psf, he said.
In another proposed deal, Tulip Garden, at the junction of Holland Road and Farrer Road, has been launched for collective sale through expressions of interest. The 20-year-old, 164-unit development is located on a 316,709 sq ft site with a plot ratio of 1.6.
Marketed by Savills Singapore, director Steven Ming said the indicative price guide is $900 psf ppr including development charge. This would give the site a price tag of about $456 million.
Based on the plot ratio, about 253 condo units of 2,000 sq ft in size, or 316 units of 1,600 sq ft, can be built. Mr Ming said almost 80 per cent of the residents have agreed on the proposed collective sale.
At the asking price of $456 million, the break even price is $1,250-$1,300 psf. The estimated launch price could be around $1,500.Mr Ming said average prices for recent launches nearby, like Ford @ Holland and Sixth Avenue Residences, are $1,200 psf and $1,100 psf respectively.
In Tampines, a 22-year-old former HUDC development, Tampines Court, has been put up for collective sale with an indicative value of $527 million, inclusive of development charges and differential premium of about $107 million.
It is marketed by Dennis Wee Group. Investment sales director Jimmy Teng said the 702,458 sq ft site has a plot ratio of 2.8 and a potential gross floor area of at least two million sq ft.
‘The successful developer could build about 1,700 units with an average size of 1,250 sq ft,’ he said, adding that developers also have the option to bid for one of the two subdivided parcels.
Source: The Business Times, 23 January 2007
27 January - Press Release:- Tampines Court up for en bloc sale (Weekend Today)
31 January - Announcement of tender in Straits Times
04 February - 80.00% - Statutory 8 week Notice
12 February - Press release:- Collective sale site in next wave may fetch around $1 billion each 
The record for collective sales in terms of absolute dollar price has been broken twice since the start of the year – Horizon Towers in January with $500 million, and Gillman Heights this month with $548 million.
But in the works are the next wave of collective sale sites about twice that quantum. These include The Claymore, a prime freehold site of about 246,000 sq ft at Claymore Hill, with a price tag said to be about $1.3 billion, and Farrer Court, a privatised HUDC estate, with a land area of 838,500 sq ft and an asking price believed to be about $900 million. Another large scale residential collective sale in the pipeline is Ridgewood Condominium in the Mt Sinai area, said to have an estimated price tag of over $900 million.
The $1.3 billion price being indicated for The Claymore reflects a unit land price of about $2,030 psf per plot ratio inclusive of an estimated $100 million development charge that its developer will have to pay to the state. This would set a new benchmark price for residential land in Singapore.
Apart from these jumbo collective sale sites, there are a slew of others that could be launched this year, although with slightly smaller price tags.This includes Tampines Court, with a $420 million indicative value, and several in the Farrer Rd area such as Leedon Heights (whose indicative price is said to be about $700 million) and Spanish Village (over $400 million). Tulip Garden was launched last month with an asking price of over $420 million.
The big question on many market watchers’ minds is whether there’ll be takers for so many big-ticket sites. Property agents are predictably sanguine.
‘There will be demand for big plots as increasingly you see developers teaming up with financial partners or funds from overseas. And these foreign players are looking for significant-sized acquisitions, otherwise they won’t bother spending resources studying the local market,’ says DTZ Debenham Tie Leung director Tang Wei Leng.
Agreeing, CB Richard Ellis executive director Jeremy Lake observes: ‘The deal size in terms of absolute dollar quantum is less of a hindrance than it might have been a couple of years ago, as there’s plenty of liquidity now. We see developers teaming up with other developers, or developers teaming up with financial partners, for large acquisitions.’
He acknowledges, however, that pricing is an issue. ‘Minimum pricing set by owners in terms of the unit land price (psf per plot ratio) for en bloc sales is being pushed into uncharted territory,’ he said.
But as residential project launches test fresh highs, the unit land prices being sought by some owners may not be completely far-fetched – although they seem high relative to previous benchmark prices for residential land, Mr Lake added.
An important factor that affects developers’ ability to raise prices of their high-end projects is supply in the location, note property players. And supply is one factor developers take into consideration when trying to decide whether or not to buy a collective sale site.
‘If you have just one large en bloc site in the vicinity but no new projects nearby, then the developer will find it easier to control the market and move up his selling prices. But when you have a few big ones in the same location, developers may be less enthusiastic about bidding for big en bloc sites in such micro-markets.’ One such example, say property watchers, is the Farrer Rd area.
However, Savills Singapore managing director Michael Ng, whose firm is marketing three sites including Tulip Garden and Spanish Village, is confident saying that the sites are in District 10, a prime district.
‘The area’s pull will become even stronger when the Farrer MRT Station (under Circle Line) opens,’ he said. ‘In fact, the area is just five minutes’ drive from the Grange Rd area where condo units are commanding $2,000 psf or even higher,’ he added.
Over at Tampines Court, marketing agent Dennis Wee and the appointed lawyer for the majority owners, Phang & Co, plan to make the huge, 702,162 sq ft leasehold site more digestible to prospective developers by dividing it into two smaller plots.
Developers will be invited to bid for one or both sites. The award will seek to maximise the overall sale price achieved for the two sites combined.
‘If one party submits the highest bid for one plot and another for the second plot, then both developers will have to jointly agree to buy the entire site as the two halves must be sold together,’ explains SK Phang, principal in the law firm.
After completion of the sale of the site, the developers would then partition the site into the two halves and each developer will become the sole owner of the half he has bid for.
As far as owners of the 560 units in the estate are concerned, their sale proceeds will be the average of their share value in the estate and the floor area of their unit – regardless of which subdivided plot their unit stands on.
Source: The Business Times, 12 February 2007
 
08 March - Close of Tender
25 March - Sold by private treaty

Purchase price: $395,000,000.00 + $10 million Beta Sum = $405 million
Dev. charge + Dif. Premium = $107 million
$260 psf of potential gross floor area. (pgfa) including developmental charges and differential premium.
*Average gross sale price per unit : ~$705K before adjusting for Alpha sums, deduction of costs and expenses etc
(as stated in property agent letter dated 27 March 2007) 

 
28 March - Press Release:- Tampines Court being sold for $405 million (Business Times)
28 March - Dialogue session
1-April - Dialogue session
21 April - Sale and Purchase presentation
31 March - 80.71% - Statutory 8 week Notice
03 May - Outline Planning Permission (OPP)
25 May - 81.6% - Statutory 8 week Notice
22 June - Upgrading to 99 yrs lease
30 June - Minority Dialogue session
19 July - 81.6% - Statutory 8 week Notice
21 July - EOGM
26 July - RPA in principle date of approval
28 July - AGM
12 Aug -
19, 20 August - Collection of disbursement fee ($781.25) from majority owners
5 September - Appointment of Valuer
12 September - 82.14% - Statutory 8 week Notice
06 November - 82.14% - Statutory 8 week Notice
27 December - Notice of application for Sale in 4 Newspapers
31 December - 82.14% - Statutory 8 week Notice 
2008
TAMPINES COURT CASE: STB 02/2008
07 January - Application for sale to the STB
18-22 January - minority objections filed
29 February - Day 1 minority mediation at the STB . Group of 39 legally represented, plus 4 single objectors with no legal representation.
10 April - Day 2 minority mediation
09 June - Day 3 minority mediation
16,17,18 June - STB Hearing. Group of 32 minority legally represented and 2 independent minority.
19 June - Buyer does not agree to amend the S&P Agreement (Beta Sum)
23 June - Interlocutory Application to Amend Application (in chambers).
Application withdrawn
27 June - Buyer not minded to agree to the extension of time (S&P)
30 June - Interlocutory Application to bring forward the date for the adjourned hearing
02 July - Minority objection to bring date forward
09 July - Arguments for and against presented
10 July - Further arguments added
11 July - Application dismissed by STB
16 July - majority apply to High Court to have the date of hearing brought forward : High Court originating Summons 941 2008/P
18 July - High Court Originating Summons 941 2008/P
Mir Hassan bin Abdul Rahman and Another v Attorney-General[2008] SGHC 147
Court allows date to be brought forward
21 July - STB Hearing day 4 and Majority Oral Submission
22 July - Minority Oral Submission
23 July - Written submission
24 July - Extra submissions?
25 July - STB dismissed the sale. Grounds for dismissal: lack of good faith in sale price and method of distribution.
25 July midnight- Qualifying Certificate expiration, Sales and purchase agreement expires.

The End of En bloc Round 1
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26 July - Annual AGM
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Aug - Aug 2009: general repairs to the estate. New car labels. New Access gate cards. Tree pruning and general landscaping works. New CCTV camera system at guard houses and side gates. Accounting problems solved.
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2009
Aug 2009 - Annual AGM. Repainting &  Repair works approved.

Oct 2009 - Repainting of estate, re-tiling of ground floor lift lobby, re-tiling of low-rise ground floor. New letterboxes, signage, dustbins, benches, replacement of corroded water pipes and other R&R works.



2010
April 2010: estate repainting and other R&R works completed.
Over 20% unit turnover since Aug 2008
Gathering of requisitions for a second attempt at a collective sale by a new owner in 2010
29 Nov - letter of requisition for EOGM from less than 20% of owners by share value to the Management Council


2011
10 Jan - Notice of EGM for the purpose of collective sale sent to all SPs with 29 Nov letter showing less than 20% by share value of SP's requisitioning.
24 Jan - Amended Notice of EOGM for the purpose of collective sale with new requisition letter dated 19 Dec 2010 with amended list of requisitionists
29 Jan  - EGM 1 for Collective Sale of Tampines Court


Quorum: 47% at 2.30pm

Number of SPs elected to the sale committee: 12 (6 new owners since 2009, 6 old owners)
One nominee refused to give full disclosure of her interests and that of her associates' interests in the estate. 

Itshometome later unearthed that this SC member had not disclosed :-
a) her co-mortgagee's second unit in the estate and 
b) her sister's holding of 2 units in the estate. 
Subsequent emails to the managing agent to void this member's nomination (in accordance with the Schedule) proved fruitless.
Letter dated Mar 24 to sale committee on the matter also proved fruitless.
Email to en bloc solicitor  went unanswered but was followed shortly by the resignation of the said SC member in Aug 2011 for 'personal reasons'. 
Time taken between EGM 1 and resignation of errant SC member: 7 months. So, no one actally 'voided' her nomination thereby proving that Paragraph (2) of the Third Schedule is bogus :

he shall, before his election, declare at the general meeting convened for such election, the nature and extent of all such conflicts of interest or potential conflicts of interest.
(2) The election of any person who fails to comply with sub-paragraph (1) shall be void.

26 Feb - SC Meeting
16 Apr - SC Meeting: 5 Marketing Agent presentations
03 May - SC Meeting: Shortlisting of Marketing Agents
23 May - Requisition letter to managing agent  for EGM 2
04 Jun -  Notice of EGM 2 sent to SPs (dated 4 Jun)
18 Jun -  SC Meeting: Legal presentation no.1
25 Jun -  SC Meeting: Legal presentation no.2
02 Jul EGM 2  for the purpose of collective sale (2-5.30pm)



Quorum: 30.71% (172 Units with share value 688) at 2.20pm







10 Aug - SC Meeting: Draft CSA
10 Aug - SC Meeting: Resignation of 2 SC members, amended CSA
20 Sep -  SC Meeting: EGM Agenda, Draft CSA, Reserve price, Recess Area
01 Oct -  SC Meeting: CSA discussion with lawyers and SPs
12 Nov - SC Meeting: no quorum:
19 Nov - SC Meeting: SC member resignation, letter of appointment of lawyer and MA, statement of income & expenditure of the SC, the RP, breakdown of En Bloc Fund, consider motion sent in by SP, finalisation of resolutions for EGM 3


ACCIDENTLY DELETED MOST OF ENBLOC Rd2   - so have to do again!





1 comment:

  1. Anonymous09 June, 2009

    you mean TC has a new lease of 99 years? That makes this condo less than 5 yeas old in term of lease?

    ReplyDelete