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."
Drop Down MenusCSS Drop Down MenuPure CSS Dropdown Menu
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.

BUONA VISTA GARDENS


Some en bloc shenanigans reportedly going on in this estate. Will try and get some details...

Comment from BVG owner:
An agent sent out 48 letters of offer to the 48 residents. A check showed that a developer-buyer is very keen on the land, and asked the agent to approach the owners. So it begs the question of whether the agent is working for the owners or the developer. But it is stated clearly in the terms of the "offer" that owners will have to pay 1% commission. There was no legitimate valuation to justify their offer price. Perhaps it was a ballpark price worked backwards from the amount of profits the developer-buyer hopes to get.

There are as many ways to circumvent the LTSA rules as there are to skin a cat. Not having to go through the collective sale process is the dream of developer-buyers and it is only possible in smaller estates with unanimous consent. 

Initially, I thought it was like an 'expression of interest' exercise; whereby if enough owners like the offer price then they would start the en bloc ball rolling for that developer.

But I now realise it's more like the  'hostile takeover en bloc' approach - the buyer will attempt to buy out the properties one by one, perhaps. See post below.

8 comments:

  1. BVG stayer13 August, 2010

    An agent sent out 48 letters of offer to the 48 residents. A check showed that a developer-buyer is very keen on the land, and asked the agent to approach the owners. So it begs the question of whether the agent is working for the owners or the developer. But it is stated clearly in the terms of the "offer" that owners will have to pay 1% commission. There was no legitimate valuation to justify their offer price. Perhaps it was a ballpark price worked backwards from the amount of profits the developer-buyer hopes to get.

    ReplyDelete
  2. no worries...ask the agent to justify the price, better still get another agent to propose their price to compare.

    ReplyDelete
  3. if anyone in BVG is concern over princing, just get another agent to prsent their valuation.. if it is indeed higher, it can be brought up at the eogm for all to see...

    why so paranoid? take hold of your future. No use just complaining...

    ReplyDelete
  4. BVG stayer14 August, 2010

    Hi Annoymous - not complaining but disgusted at the way that we are "hit", and disturbed. There are residents who believe that their target price is met. While there is legitimate concern among others that developer-buyer may start to accumulate units and run the estate down.

    ReplyDelete
  5. oh, yes, that's another nasty possibility.

    The GOLDEN MILE COMPLEX hostile takeover route .. see post under en bloc estates.

    ReplyDelete
  6. few way to reduce the risk:
    - get into the sales comm to have your voice heard
    - bring interested parties to join as well
    - get other margeting agents to share their valuations

    ReplyDelete
  7. BVG stayer15 August, 2010

    Hi Annonymous - we have no SC. Out of the blues, a developer got his agent to send everyone letters of offer, hoping to buy us all out through private treaty.

    ReplyDelete
  8. no worries, no sc, no enbloc. enbloc cannot proceed w/o going thru the proper process. the developer cannot buy you guys thru a private treaty. even if they manage to purchase 80% of the units, they must go through the legislated process.

    ReplyDelete