A Minority Owner's chronicled journey through 3 Collective Sale attempts; the last one being successful. TC was a 560 ex-HUDC estate with a thriving community spirit (up until the enblocs that is). I have moved on to a new, 37 unit Freehold estate. Life is quiet now with zero community feeling.
Congratulations. Pretty sure come with conditions, sold at valuation price better then zero. TC sold above valuation yet some people still want to object.
So far he email just states the success of the sale and the apportionment of the proceeds. I do not think there are any conditions attached to it. I think it is safe to say that we are now "out of the woods"!
There will be conditions for sure. It's quite the norm. No developer will spend this kind of money unconditionally when the total costs of acquiring a piece of land are not known yet.
Your question also reminded me that we have not gotten any confirmation if Rio Casa & Serangoon Ville had any deduction in their gross sales proceeds due to their higher development charges.
The recent news was that Oxley had to raise additional capital, which prompted me to wonder if there were any conditions attached for RC & SV or if conditions can be issued after their public tender. Or perhaps, is Oxley paying all the increase in development charges, which works out to be an additional $71M for both sites.
I forgot to add if that deduction is true, then each RC owner loses 126k and each SV owner loses 142k. After all, gross sales proceeds is not the actual amount of money each owner is getting. It is just a probationary figure.
FR does not have any such conditions. In any case, it is still not confirmed if there were such conditions for RC and SV.
But the rationale that Oxley is SO GOOD to give RC and SV owners $2M per unit and yet be willing to pay our govt another $71M in extra DC, and yet had to raise additional $12M in capital, makes no business sense to me at the moment.
The sales and purchase agreements to be issued by the buyer, should be able to legally state any additional conditions. I do not think FR would be subjected to this kind of worries.
So I was right, it was a blessing in disguise for us. After all, we did somehow had hoped that we could get either Nanshan or Logan to bid at our public tender.
Deduction of 126k and 142k is quite a hard pill to swallow for RC and SV SPs. There could be objectors who think it is not fair, and ignore the STB mediation.
Oxley tried to bid at 580M. The other was Sim Lian at 550M. Kingsford bid was 610M. So if the RP had been at 660M, Kingsford could have bidded at 670M, and everyone at FR would have gotten about 2.0M per unit.
Side note, I thought Sim Lian got their hands already tied at TC?
The conditions are irrelevant as their bid prices did not exceed the valuation. Even after deduction from increase in DC costs, the final gross sales proceeds still has to be above or equal to valuation.
That means Kingsford has to bid at 670M in order to subtract 40M to get 630M, which is close to valuation.
Hi Edwin, so looks like FR's deal is quite safe, compared to SV and RC with the DP difference conditions. Looks like FR and TC has got the best deals for HUDCs this round?
Well, looks like we have forgotten about Eunosville. Even after their deduction due to increased DP, my estimation is that their homeowners still get about or above 2.15M each.
Maybe during June/July next year and after legal completion? I believe FR gets sales proceeds only after legal completion, just as other collective sales. That was the advice given by the lawyer anyway, that we should not buy another property until legal completion is achieved.
Now that FR has been sold, I'm sure future sales will do much better than serangoon ville or rio casa site. Hope oxley crash and burns for the unnecessary stunt it pulled on FR.
where you get the news from?
ReplyDeleteCongratulations. Pretty sure come with conditions, sold at valuation price better then zero. TC sold above valuation yet some people still want to object.
ReplyDeleteOne of the 2 developers confirmed the purchase? I'm amazed at how you always manage to get the info. Will they announce soon?
ReplyDeleteCongrats! Is it one of the foreign developers? At valuation is pretty worth it considering price paid for ppr
ReplyDeleteSold to Logan!
ReplyDeletehttp://www.businesstimes.com.sg/real-estate/hong-kong-listed-logan-property-bags-florence-regency-for-s629m
That is good news! Are there any terms and conditions, eg. like LUP or SPs have to share differential premium cost?
DeleteSo far he email just states the success of the sale and the apportionment of the proceeds. I do not think there are any conditions attached to it. I think it is safe to say that we are now "out of the woods"!
DeleteThere will be conditions for sure. It's quite the norm. No developer will spend this kind of money unconditionally when the total costs of acquiring a piece of land are not known yet.
DeleteYour question also reminded me that we have not gotten any confirmation if Rio Casa & Serangoon Ville had any deduction in their gross sales proceeds due to their higher development charges.
DeleteThe recent news was that Oxley had to raise additional capital, which prompted me to wonder if there were any conditions attached for RC & SV or if conditions can be issued after their public tender. Or perhaps, is Oxley paying all the increase in development charges, which works out to be an additional $71M for both sites.
I forgot to add if that deduction is true, then each RC owner loses 126k and each SV owner loses 142k. After all, gross sales proceeds is not the actual amount of money each owner is getting. It is just a probationary figure.
DeleteWow that is a big amount. But does FR have similar conditions as RC and SV?
DeleteFR does not have any such conditions. In any case, it is still not confirmed if there were such conditions for RC and SV.
DeleteBut the rationale that Oxley is SO GOOD to give RC and SV owners $2M per unit and yet be willing to pay our govt another $71M in extra DC, and yet had to raise additional $12M in capital, makes no business sense to me at the moment.
The sales and purchase agreements to be issued by the buyer, should be able to legally state any additional conditions. I do not think FR would be subjected to this kind of worries.
So I was right, it was a blessing in disguise for us. After all, we did somehow had hoped that we could get either Nanshan or Logan to bid at our public tender.
Dont think there is solid case here like FL for STB phase or high court
DeleteDeduction of 126k and 142k is quite a hard pill to swallow for RC and SV SPs. There could be objectors who think it is not fair, and ignore the STB mediation.
DeleteYay yay!!!!! We have a buyer! Finally sold.....so happy!
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteIf Valuer knows the.highest bidder price then do the valuation,how can we know the valuer is not affected.by the highest bidding price?
ReplyDeleteOxley placed a bid below the reserve price of $600m for FR. Why they even bid? I won't be surprised if they have strategies to suppress the price.
ReplyDeleteInteresting revelation, though I did sort of guessed it. So who was the other bidder that gave a bid below our RP of 600M?
DeleteOk got the info just now.
DeleteOxley tried to bid at 580M. The other was Sim Lian at 550M. Kingsford bid was 610M. So if the RP had been at 660M, Kingsford could have bidded at 670M, and everyone at FR would have gotten about 2.0M per unit.
Side note, I thought Sim Lian got their hands already tied at TC?
But FR SPs will have to share cost with Kingsford if there is increase in DC. There were many conditions as well in their 27Sep tender bid.
DeleteThe conditions are irrelevant as their bid prices did not exceed the valuation. Even after deduction from increase in DC costs, the final gross sales proceeds still has to be above or equal to valuation.
DeleteThat means Kingsford has to bid at 670M in order to subtract 40M to get 630M, which is close to valuation.
Hi Edwin, so looks like FR's deal is quite safe, compared to SV and RC with the DP difference conditions. Looks like FR and TC has got the best deals for HUDCs this round?
DeleteWell, looks like we have forgotten about Eunosville. Even after their deduction due to increased DP, my estimation is that their homeowners still get about or above 2.15M each.
DeleteHow long do you think FR will get sales proceeds? RC and EV might not have even gotten their proceeds even though their deals were done much earlier.
DeleteMaybe during June/July next year and after legal completion? I believe FR gets sales proceeds only after legal completion, just as other collective sales. That was the advice given by the lawyer anyway, that we should not buy another property until legal completion is achieved.
DeleteNow that FR has been sold, I'm sure future sales will do much better than serangoon ville or rio casa site. Hope oxley crash and burns for the unnecessary stunt it pulled on FR.
ReplyDeleteWhat stunt? They can bid whatever they want to. Its business.
Deletesure got cocky quickly havent you?
Deleteso dont come back begging and crying for oxley when FR gets stuck in High Court or one of the thousand things that can happen to derail your enbloc
Hello people! Lets wish each other well. Do not ill wish others. Lets use this forum to discuss and share and not tearing each other apart.
DeleteAgreed
Deletehttps://youtu.be/dRN99zNjRHY