For the sake of clarity and openness, the sale committee will need to address the concerns and questions of the residents of Tampines Court at the upcoming EOGM on 21 July. I have compiled a list which I hope the sale committee will be forthcoming enough to answer clearly at the upcoming EOGM. The list of questions following may not be exhaustive but they are pertinent, and many are as yet unanswered.
1. When was the first formal valuation done?
2. How do you justify the reserve price of $389,719,233.00?
3. Do you have a fresh top-up valuation to the Valuation Report that is the basis of $389,719,233.00? If so why has it not been disclosed? If not then why not?
4. Why didn’t the sale committee get a valuation report in the face of escalating property prices between expression of interest in 2005 and the conditional sale on March 25th 2007? Please explain.
5. Why was the Sale Committee not aware that the Market was rising? Did not the property agent advise the sales committee?
6. Why was no mass meeting held with the subsidiary proprietors after the 80% had been reached and before the property was sold? Would it not have been expedient?
7. How was the committee acting in the best interest of the owners by NOT seeking a higher reserve price or providing for a Top Up Valuation?
9. You had a year to market the property from January 2007, explain why you rushed to sell in March 2007 just when it was obvious that the Market was rising in leaps and bounds?
10. Can minority owners appeal to the STB under section 84A (7) (a) to obtain the Alpha sum?
11. Can minority owners, who will incur a cash outlay to cover their costs and expenses of the enbloc sale and/or the outstanding privatization costs appeal to the STB under section 84A (7) (b) to have those costs covered?
12. Will the CPF agree to allow 5% of sale price not to return to the Member’s Account as it will be withheld from the gross sale price until the unit is vacated?
13. If the STB does not approve of the sale, how will the sale committee pay the professional fees of the enbloc solicitor and the property agent?
14. Was the tender exercise open to scrutiny by the owners?
15. Wasn’t this a ‘lack of transparency’ on the part of the sale committee?
16. Why wasn’t a new open tender called?
17. How do you know you got the highest purchase price when there was no new open tender and no one to bid against the purchaser (2)?
18. Why were the names of the Party A and Party B in the tender exercise and the amount tendered kept secret?
19. Explain why owners were not informed of the tender offers as is the norm in other en bloc sales?
20. If Purchaser (1) organization put in a written offer for $390 million + $10 million for the whole site, why did the sale committee enter into a conditional sale with Purchaser (2) , which is not Purchaser (1).
21. Was the possibility of a Beta sum ever mentioned and recorded in the Minutes in any of your meetings with subsidiary proprietors prior to the sale?
22. Was the Beta sum ever discussed at any of the sale committee meetings prior to the sale? Which set of Minutes?
23. Why wasn’t the Beta sum in the CSA along with the Alpha sum?
24. Why didn’t the sale committee commence collection of the Beta sum after the 40% signatures had been reached, as stated in the minutes of the 4th Sale Committee meeting held 10th April 2006 at the MCST office?
25. By not mentioning the Beta sum directly in the CSA, but adding a catch-all clause that sanctioned the sale committee to do anything they wanted (except lower the reserve price), were the signers unwittingly signing for the Beta sum as well?
1. When was the first formal valuation done?
2. How do you justify the reserve price of $389,719,233.00?
3. Do you have a fresh top-up valuation to the Valuation Report that is the basis of $389,719,233.00? If so why has it not been disclosed? If not then why not?
4. Why didn’t the sale committee get a valuation report in the face of escalating property prices between expression of interest in 2005 and the conditional sale on March 25th 2007? Please explain.
5. Why was the Sale Committee not aware that the Market was rising? Did not the property agent advise the sales committee?
6. Why was no mass meeting held with the subsidiary proprietors after the 80% had been reached and before the property was sold? Would it not have been expedient?
7. How was the committee acting in the best interest of the owners by NOT seeking a higher reserve price or providing for a Top Up Valuation?
9. You had a year to market the property from January 2007, explain why you rushed to sell in March 2007 just when it was obvious that the Market was rising in leaps and bounds?
10. Can minority owners appeal to the STB under section 84A (7) (a) to obtain the Alpha sum?
11. Can minority owners, who will incur a cash outlay to cover their costs and expenses of the enbloc sale and/or the outstanding privatization costs appeal to the STB under section 84A (7) (b) to have those costs covered?
12. Will the CPF agree to allow 5% of sale price not to return to the Member’s Account as it will be withheld from the gross sale price until the unit is vacated?
13. If the STB does not approve of the sale, how will the sale committee pay the professional fees of the enbloc solicitor and the property agent?
14. Was the tender exercise open to scrutiny by the owners?
15. Wasn’t this a ‘lack of transparency’ on the part of the sale committee?
16. Why wasn’t a new open tender called?
17. How do you know you got the highest purchase price when there was no new open tender and no one to bid against the purchaser (2)?
18. Why were the names of the Party A and Party B in the tender exercise and the amount tendered kept secret?
19. Explain why owners were not informed of the tender offers as is the norm in other en bloc sales?
20. If Purchaser (1) organization put in a written offer for $390 million + $10 million for the whole site, why did the sale committee enter into a conditional sale with Purchaser (2) , which is not Purchaser (1).
21. Was the possibility of a Beta sum ever mentioned and recorded in the Minutes in any of your meetings with subsidiary proprietors prior to the sale?
22. Was the Beta sum ever discussed at any of the sale committee meetings prior to the sale? Which set of Minutes?
23. Why wasn’t the Beta sum in the CSA along with the Alpha sum?
24. Why didn’t the sale committee commence collection of the Beta sum after the 40% signatures had been reached, as stated in the minutes of the 4th Sale Committee meeting held 10th April 2006 at the MCST office?
25. By not mentioning the Beta sum directly in the CSA, but adding a catch-all clause that sanctioned the sale committee to do anything they wanted (except lower the reserve price), were the signers unwittingly signing for the Beta sum as well?
Please refer to this link http://www.goenbloc.com/Enblocsale/STB.htm.
ReplyDeleteWHAT IS THE REQUIRED MAJORITY WHICH MUST BE OBTAINED BEFORE AN APPLICATION CAN BE MADE?
If a development is less than 10 years old [calculated from the date of the issue of the latest Temporary Occupation Permit (TOP) (or Certificate of Statutory Completion (CSC) if no TOP)], the owners of 90% of the share values, share in land, or notional share in the land must agree in writing to sell all the units and common property or land to a purchaser under a sale and purchase agreement (subject to an order of the Strata Titles Board); and
[Sections 84A(1), 84D(2) and 84E(3)]
If a development is 10 years old or more [calculated from the date of the issue of the latest TOP (or CSC if no TOP)], the owners of 80% of the share values, share in land, or notional share in the land must agree in writing to sell all the units and common property or land to a purchaser under a sale and purchase agreement (subject to an order of the Strata Titles Board).
[Sections 84A(1), 84D(2) and 84E(3)].
Note: The date of issue of the TOP or CSC may be obtained from the Building Plan Department, Building and Construction Authority at 5 Maxwell Road #16-00 Tower Block, MND Complex, Singapore 069110 (Tel No: 3251586, Fax No: 3251607).
Can minority group request for TOP or CSC from BCA?
From my understanding, the enbloc sale will proceed so long as 80% has agreed to it and STB approves it, regardless whether the minority agrees or not.
ReplyDeleteDid the Sales Committee / Agent do / use a fresh valuation in 2007 prior to calling for the quotation / tender or was the 2005 valuation report used ?
If the 2005 valuation report was used, would the minority (as well as the majority who have already signed) have a case to appeal to STB to stop the sale as the Sales Committee / Agent would not have fulfilled their obligation / responsibility to the residents to represent and act in their collective interest in doing so by using a valuation report which was outdated and hence fetch a lower sale price ?
Indeed, Tampines Court, being an ex-HUDC does not have a TOP issued to it. Any member of the public can check their TOP or CSC on the BCA website for a nominal fee of $20. A search for my property's CSC revealed that Tampines Court has a CSC (Full) issued on 14/05/2003.
ReplyDeleteSo, technically, we are less that 10 years old going by the regulations.
But, is it enough to stop the sale? We shall see at the STB, but I don't have high hopes here. If the ends (enbloc at all costs) justify the means, then this kind of technicality may be swept under the carpet.