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."

SALE IS NOT CONFIRMED
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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.

DP for Increase in Intensity

Differential Premiums (to be paid by Buyer):
1) for Increase in Intensity of land (from low to higher plot ratio)
2) for Lease Top-Up (LUP) - topping up to 99 years for leasehold developments 
(you can't open the link because I am rethinking this - I can't compute Normanton's LUP so I figure there's something wrong with my computations...hmmm)

Looking at the Sale price Analysis slide (25 Aug 2017) the DP for increase in land intensity was given as $234,724,555.  They gave the existing plot ratio as 1.555 and it looks like they used the DC rate for Mar 2017 ($3500) instead of the Sep 2017 rate of $4200. Tampines Court was sold on 22 Aug 2017 - in the nick of time before the rate increase perhaps?
Note: the development baseline has not yet been ascertained. Using the lower PR is to the Buyer's advantage. 


1) DP for INCREASE IN INTENSITY OF LAND

Summary Table



TABLES:


STEP 1
Example of calculation from SLA website followed by 4 computations using existing plot ratios 1.55584 & 1.71 and Mar 2017 $ Sep 2017 DC rates respectively





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