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 Valuation

The valuation issue is perhaps the most contentious issue in the whole en bloc process of Tampines Court

The facts as subsidiary proprietors know them:

The reserve price was not based on a formal valuation.
This was revealed at an un-minuted dialogue session in April 2007. But a figure like $389,719,233.00 could not have been plucked from the air, so who did the initial, estimated valuation?
At the EOGM held in July 2007: their rationalisation was that the STB regulations only stipulate a valuation not more than 3 months old at the time of application to the Board. Owner's expectations and normal practice do not seem to figure at all in their decision making.

The reserve price was not revised upwards in the 15 months prior to the sale.
Where was the option to revise the price upwards in the escalating property market? Other en bloc estates were keeping pace with the bullish market, why not ours? The Property agent obviously treated the RP as a maximum price, rather than the minimum it should have been.

Let’s look at how the reserve price was adjusted in another ex-HUDC estate Farrer Court:
.
Farrer Court (ex-HUDC):
DECEMBER 2006 ----------$700 MILLION
JANUARY 2007 -------------$840 MILLION
MARCH 2007 ---------------
$1.2 BILLION ---------SOLD!
.
TAMPINES COURT (ex-HUDC)
DECEMBER 2005-----------$389,719,233
JANUARY 2007 ------------$389,719,233
MARCH 2007 --------------$389,719,233 ------
SOLD for $395 million!
.
Note: it is not the actual figure that is important, but the fact the the RP was ADJUSTED UPWARDS reflecting market conditions at the time
.
Media Corps Press, Today online.com
"Jones Lang La Salles national director of investments Lim Song Hai said " For the first quarter of 2007, we've seen a rise in reserve prices in the region of about 30% on average"."
Channel News Asia

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