The Beta Sum is a major minority objection at the STB.
The SC gave $405 million as the Sale Price in their Application.
It comprises of $395 million + $10 million
Stamp duty is paid on $405 million
The distribution of this Beta sum is at the discretion of the SC.
Only 239 (out of 560) SPs gave in partial or full financial details.
The Tabulation for Alpha and Beta is therefore incomplete and the final figures remain unknown.
SPs do not know what their sale proceeds will be.
Only Alpha (up to 1% of sale proceeds to cover financial loss) was mentioned in the CSA.
Beta first appeared on 27th March 2007, after the sale.
The remainder of Beta sum is divided between those owners who did not claim Alpha or Beta (ie Omega owners).
There is over $8 million to be divided amongst the Omega owners.
By this distribution method, if 559 owners claim $1000/- then the remaining owner would get $9.44 million.
The method is clearly flawed, as pointed out by a panel member.
The Sale committee applicant admitted on cross examination that the Beta sum distribution was "unfair".
The SC cannot change the method of distribution unilaterally.
The Buyer has refused to amend the S&P to change the method of distribution of Beta.
The SC is stuck with this flawed method of distribution.
The SC, in it's oral submission, tried to change it's position saying that the Sale Price was actually $395 and that the Beta sum was extra.
The following is the A2 Table submitted by the majority at the STB showing the partial distribution of sale proceeds to those who had made their financial situation known to the the en bloc lawyer. This table is incomplete as there are many unknowns outstanding.
(The Table has been edited to erase unit identification)
A2 cropped,circled,shrunk -
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