Method of Apportionment of Sales Proceeds for TC

Tampines Court is lucky in that the units do not vary greatly in size (154 - 161 sqm) and  all enjoy equal share value of 4. There is no one size fits all method of disbursement, it typically can range from full strata area to full share value or some percentage of both . At the end of the day, it is a judgement call.

A more  factual method would be to calculate the common area separately from the strata area:share value. The common area is 21.13% of the Development baseline and the Strata area is 78.87%. So, 21.13% of the sales proceeds would be divided equally between 560 units and the remainder divided by the 50:50 method of apportionment.  But let's not go there as TC does not throw up a huge  problem in this area.

The formula for the 50% strata area 50% share value method is quite straightforward*, and when you apply it to a Sale Price - then this is what each unit will receive before deduction of costs and expenses of the sale.  The Sale Price does not include the DP/DC which is payable by the developer-buyer. I have given some examples of unit proceeds based on different ballpark sale prices. The tables below are my own *, I have not seen the detailed proposals given by the shortlisted MAs, and I do not know what values they might have used.

*The initial formula is  (E + F) / 2  whereby E = a unit's percentage by share value (ie. it's share value / total share value),  F =a unit's percentage by strata area.  (ie, its floor area  / sum total of  floor area of all units). This total floor (strata) area can be ascertained by doing a SLA search, or in my case,  a  URA website, crosschecked with documents from Round 1. The total strata area is 87974 sqm and the total share value is  2240

As a comparison, here is what the sale proceeds would look like if only the Strata Area were considered:-

And what the sale proceeds would look like if only the Share Value were considered:-

 
* The typical floor area and number of units for each type was taken from the affidavit handed in by the en bloc lawyer to the STB in Round 1