CSC Private rebuttal to Anonynous Flyer No. 1

I take back my comment about the CSC's measured and dignified response. There is nothing 'measured or dignified' about our ever volatile exec CSC member's personal rebuttal which only some (majority only?) owners received.  I got it in a very roundabout manner.

Hmm, I know Raintree Gardens tendered at $1.8M and got $1.9M. hardly FAR LESS (his capitalization).

Does our CSC member ever  'read the newspaper', does he know 'when property cooling measures were introduced'? Does he know 'if a  developer would dare bid for a large pieces of land then'? He sounds so learned, perhaps he should tell us.

He gives only one reason why Enbloc Rd 2 failed - people didn't want to pay Lawyer signing fees. Ah yes, money upfront was just one factor, and not the most important one in my opinion.  Old news.

SP Meeting on 1st July

The SP meeting will be held in the Activity Room. This is a room the size of 2 bedrooms with a maximum capacity of 30 pax. (confirmed by the managing agent). There are 560 units in the estate so around 1000+ owners. If one of their stated reasons for delaying this meeting was to contact as many SPs as possible then the SC had better hope 95% of owners don't turn up. There will be no room for them even holding the meeting twice. 

Holding the meeting twice means 2 sets of owners will not be hearing quite the same things. Questions from one set will not mirror the other. The tone at the meetings might also be different. 

FB page:

Raintree Gardens Template

One of our Minority Mr. G contacted me with very useful information regarding Raintree Gardens. Thank you very much and your Raintree Gardens contact for the following info.

If you recall, Raintree Gardens (Ex-HUDC in Potong Pasir) sold enbloc on 6 Oct 2016 for a whopping $334.2 m ($1.9m/unit).  That sent shock waves through the many ex-HUDCs.  Our RP was still stuck in the doldrums at $1.32 with the SC in denial about it's paltriness and still trying to find ways to justify it instead. When the RP was eventually raised to $1.5M the MA swooned in horror, temporarily resigned and then came back after a dose of smelling salts. But it took Ria Casa to finally put some wind into their sails (they were heading for the rocks otherwise).

Raintree Gardens had a very on-the-ball team. When the RP was stuck at  64% the CSC raised the RP to $1.8 with the help of a few senior residents and achieved the 80% in 10 days. Bravo. The team also knew in advance that an EOGM was not necessary and within 12 days were holding the SP meeting! They didn't need prompting from a Minority blogger that it was just an SP meeting requiring 7 days notice and that they shouldn't  be wasting time running around the estate gathering useless requisition signatures.

We still have to wait 1 month for just the bare SP meeting, the question is why? Why is it not next weekend? I don't buy their excuse that they want to reach as many SPs as possible.

To me, it sounds like the SC/MA/Lawyer are just not prepared and are scrabbling to find out what to do next. The MA should have all his work done and ready to launch immediately. The Lawyer should know the LTSA like the back of his hand and not be searching through Hansard records at this late stage for guidance. Note how RG started their enbloc attempt a month before us and already have their sales proceeds and are moving on. 

This is the order of events which should serve as a template for Tampines Court.

Further Constructive Advice to SC  (talking to the wind here, I know):
1) Hold your SP meeting ASAP. It doesn't have to be a weekend.
2) Go for Public Tender 3 days later.
3) Don't wait for the Government to pull the rug from under Foreign Developers buying up Residential Land.
4) If you are planning to go away on holiday - don't.

I saved them a couple of weeks over the SP meeting that is not an EGOM. Why are they wasting it shilly-shallying?

The way it should be done:

Mechanism to Lower the RP Part 2

After thinking about this long and hard and talking it over with a very learned friend I have come to the conclusion that Mr. Vasan is right and the Lawyer is wrong. The RP cannot possibly be lowered in the way outlined - namely everyone is pegged to their original RP and the RP can be raised or lowered like a yo-yo.

Raising the RP in a piecemeal fashion, like pouring water into measuring cylinder, is okay on the way up.  When the 80% is finally reached then everyone is on the same page as there can only be one CSA and one RP. It is nonsense to assume than old CSAs and their old RPs are somehow relevant when in fact they are dead, finished. The fact that owners are not required to re-sign is immaterial as they are deemed to be party to the new RP in the CSA and will receive the same sales proceeds as everyone else. That fact alone proves that their old RP is not active. 

The 80% is crucial, it is pivotal, it is the tipping point at which all things change. The second 12 months is triggered by the 80%, the estate can be sold at 80%, the minority lose their homes to the 80% . It cannot be treated like any other percentage. 

Once the 80% is reached then it is comprised of all majority owners at a single RP. If the RP is lowered then the 80% DISAPPEARS IN TOTAL because no one can be deemed to be below.  A fresh round of signature collection must begin. You can have a supplemental agreement to lower the RP but it must be signed by a fresh 80% .

This would not be considered a 'frivolous objection', I believe, and if the Lawyer's mechanism for lowering the RP is attempted, it would have to be tested in a court of Law.

(The Lawyer was wrong when he advised the SC at the 19th SC Meeting held on 1 June 2017 to hold an EOGM and had to correct his mistake afterward - so is he really, really sure of his wobbly mechanism here?)

Anonymous Flyer No.1

Mystery flyer could have been sent by anyone. It was in a stamped envelope - so this guy spent $168 on postage. 

At the upcoming meeting people can make their feelings known and SC should take their cue from the floor and be open to suggestions. If the majority want to raise the RP (and I mean a strong mandate coming from the floor) then the SC should reconsider. The SC are the agents for the Majority and must take direction from them. 

The present RP is looking on the low side now but the 80% was reached very recently on the back of that RP and if the SC ACT FAST and there is indeed more than 1 bidder out there then it is worth one roll of the dice*.

*To avoid any misreading here (perhaps my euphemisms are unfamiliar), I am  not advocating for the RP to be raised at this point. I am assuming the 80% has been legitimately reached and the SC are ready to launch the tender soon. There could very well be 6 bidders out there salivating at the thought of clinching Tampines Court, there could very well be a bidding war, we could very well surpass our RP.

The Second Period

The First Period is the time taken to reach the  80% within 12 months from Date of First Signature to the CSA.
The Second Period starts from the date the 80% was reached ("the CSA's Date"). This date has yet to be officially announced but  FB page put it at 09 June 2017. During this 12 month period, the CSC has to do many things:

FaceBook

The FB people are getting all hot and bothered about this blog. I assure them I am not in competition with their choice of medium and I visit their page everyday to see if they have any new news and to read all the 82% majority comments. Relax, we can co-exist. I have been here 10 years and I do not post untruths, if I did, they would be found out soon enough.  Note to readers - please take note of the POST DATE when reading old posts as things change very fast in Singapore and they may no longer be pertinent to today's Law or Market.  

The FB page is useful for updates, but they don't really discuss anything except how to get people to sign and how to stop people from visiting this blog. Things need to be brought out in the open and discussed to dispel any misconceptions - example - the Mechanism for Lowering of the RP should that happen. Many people thought it was a fresh 80% until I pushed for an explanation because I knew it wasn't necessarily so. That is vital information for all SPs to know.

Koh Win, Wayne, & Pro Enbloc have made cogent points along the way but their FB page is a poor medium for them to spread their views.  Sad to see you go - but good luck all the same and if you change your mind about making comments here - why don't you start posting using your FB names - that way I might even give you your own label on the right column:)

TC in the News

Florence Regency Reserve Price

Florence Regency has set their RP at a dangerously low mark. People assume that just because other estates have attracted multiple bids, that theirs will, too.

• But what if there is only 1 bid - at or near the RP? Will owners be truly happy that the sale goes through on the lowest possible offer? 

This is also the worry with Tampines Court. I believe the RP is now on the low side - and we are more likely than the other estates to attract the lowest number of bids due to our fantastic size. What if we only have FEO skulking in the wings with an offer of the bare $1.7m/unit? Or worse, a private offer of $1.6m - take it or leave it? Will the SC come back to the owners at the next SP meeting having signed a conditional sale (or option to purchase agreement) and begin the process of trying to get owners to lower their expectations? A small chick in the hand is worth a bird in then bush? 

Will the lawyers use their possibly erroneous method of finding the difference between the RP2 and the lower RP4 to reach a new 80%? 

MINORITY OWNERS OF TAMPINES COURT

The 80% has been reached. It was never in doubt after the RP was raised and the news of Rio Casa & Eunosville's jaw-dropping sales broke. There is no doubt that price achieved by recent ex- HUDCs has been very exciting, and expectations are now high that TC can join in the party. The sale committee  have the task of making those expectations come true. 

Those who did not sign (and I am one) have done nothing but exercise their statutory right of refusal. We owe no one an explanation or apology. We are now the official Minority and that in itself is a good place to be.   20% = 112 units - no small number even if we are called the Minority. This figure  is not static and will be updated in the column on the right periodically

REMEMBER: NO ONE NEEDS TO SIGN THE CSA FROM NOW ON. 

THE LAW REQUIRES 80% ONLY AND NOT A UNIT MORE. 

The sale committee does not need your signature in order to proceed with the sale.  It is of no benefit to you to sign.

Do not believe anyone who tells you:

• The 80% has been reached, everyone must sign now (Round 1 tactic)
• If we get 100% we don't need to go the the STB (true but there will never be 100% in this estate)
• If you sign you will get the money faster (rubbish)

Being in the Minority means:

• You retain all the rights to your property - until the sale is finalised at the STB/HC.
• You retain your right to make an objection at the STB/HC
• You can still attend and vote at any EOGM/meeting for SPs
• You are free from legal & financial  consequences should a conditional sale collapse.
• The sale committee have a duty of evenhandedness to treat all owners the same. 
• The Minority cannot be penalised for exercising their statutory right.

Being one of the Minority does NOT mean you are against the collective sale, only that you have chosen not to sign the CSA to date.

Minority is not synonymous with Objector at the STB.
The Minority should not be vilified or bullied by the triumphant Majority and vice versa
The Majority have accepted that they have rescinded their right to object to a conditional sale should some unfortunate event occur.

The Minority are the the Majority's only emergency break should they ever need one.

Remember Round 1 when 39 Minority owners stopped a disastrous sale, much to many of the 460 Majority owners' relief. Some Maj. owners were dismayed as they had already bought new homes in expectation of the sale being approved. A lesson to be learnt there.

The 'Second Period' has begun; let's all move forward and see what the future brings.

Eunosville sold for $765 million

This is unbelievable. What a quantum jump from the expected sale price and the actual.  There may have been 7 bidders (comment below)

So, the last 4 ex-HUDCs have been sold in the $700-$900 psfppr range

• ShunfuVille - May 2016 - $747 psf ppr
• Raintree Gardens - Oct 2016 - $797 psf ppr
• Rio Casa - May 2017 - $706 psf ppr
• Eunosville - May 2017 - $909 psf ppr

This makes my Armchair Valuation of $952m ($637 psfppr) look pretty puny.

Eunosville Development Info

Tampines on the Up & Up

HUDC PRIVATISATION JOURNEY (from HDB website)

The HUDC Privatisation Journey


http://www.hdb.gov.sg/cs/infoweb/doc/corporate-pr-17032017-annex

Work in progress:

Rio Casa SOLD

I have no idea what is happening in the market - there is no doubt collective sales are back in favour and there are very hungry developers forming consortiums with deep pockets on the prowl.  I may be a fervent minority owner but even I can't deny that the market is hot at the moment.  Note, the last 3 HUDC collective sales have all been over $700 psf ppr. 

• ShunfuVille - May 2016 - $747 psf ppr
• Raintree Gardens - Oct 2016 - $797 psf ppr
• Rio Casa - May 2017 - $706 psf ppr

I see in the Business Times article give a little more information:

Error fixed

You see, RLV's matter in this Game of Enblocs, where is ours?

My June 2016 Armchair RLV was $637 psf ppr  (RP: $952M) and it looks like it should be well within reach in the present crazed market. 

I have no further qualms about the RP for the moment - but will stay on the SC/MA's tail should the market go up any further.  One thing for sure - there is no going back from the present RP to a lower figure. Those who sign now have the power to hold the line. 

 EUNOSVILLE (ex-HUDC) enbloc tender closing on 31st May. 

The Stop Button

And that, my friends, is the sanest comment of them all - and is exactly what I am going to do. We can all chill out and I will be back when the show is either at Stage 2 or Over - or interesting news pops up like Rio Casa. 

Thank you Anonymous

The Play Button

I don't think I can stand 31 more days of this never-ending thrashing of Tampines Court.

I suspect many of the contributors are property agents because of the similarity in language with their 'un's', ''dun's, and 'pple's.  They delight in talking down the estate. Thank you very much but I do not live in a slum, and I am not surrounded by foreign workers. It is very peaceful and quiet in my corner of the estate and I am surrounded by greenery, being only on the 2nd level. My home is large and airy and there is plenty of room inside for 33yrs of accumulated stuff. 

* I don't want to wade into the replacement issue here - this is a huge topic and needs more careful research than just a quick glance at PropertyGuru. There are many options out there with the present RP - it all depends on your preferences and priorities. My priority happens to be space, a balcony, greenery and not in Tuas.  

I am sure there are 1000 other reasons to sign/not to sign - we all have out reasons and some are more valid than others - eg the lady who said her 85yr old mother can't handle the stairs up to their walk-up apt has a valid reason to sign. The person who says that units are overcrowded with tenants does not have a valid reason, because the solution is to call the URA and get it cleared.

No one is obliged to reveal their reasons to anyone, you do not need to defend your point of view. The minority have a Statutory Right not to sign however irksome it may be to the majority. 

The pros & cons of enbloc are not the focus of this blog - sometimes even I lose my bearings - but the process is, the twists and turns and the actions/inaction of the sale committee as they are at the very centre and ultimately accountable to everyone.  

The Pause Button

I shall not be 'influencing'* the last 6.79% of signatures with my 'negative' comments.  Let the 80% be reached unimpeded by the dastardly influence of a single blogger.

This will make both the impending 80% happy and provide me with the space I need to polish up old posts without attracting menacing comments and me losing my cool in the process.

I need to step back.

That's my plan for the moment, anyway :)

*Note: this is an example of sarcasm as I obviously do not think my opinion can sway 7% one way or the other. After all, 73% have already happily ignored me! 

A secret no more

Well, it looks like Tampines Court might just well reach the hallowed 80% with the latest RP

The RP has been revealed on the FB page again

Note how they were very careful not to mention it on their FB page up until now. It should not have happened, open secret or not - they should show some restraint.

Jointly owned units whereby only one owner has signed cannot be counted as going towards the 80%.

Last Signing Sessions

So, the 'last signing sessions' are coming up. There is still a chance for them to reach the 80% - many estates have reached the 80% only on the last day (Shunfu for example) and there are those who specifically hang back until the very end. They might come out of the woodwork this weekend. They are currently at 69% (from their FB page).

What is clear is that there is a strong appetite for a collective sale in this estate - perhaps even 80%- which the SC/MA failed to harness from the start. Contrary to all the comments on this blog, the estate does not necessarily have to wait 2 years for another attempt, if 50% sign for a requisition then they can fire up at will  .... but more about that later.