Enbloc redevelopment

[Icedbs]

 

 

people who just bought into a development may suddenly find themselves in a situation where they lost money just because others wish to cash out.

 

 

 

The above not likely to happen because one of the condition for Strata Board to give approval is that no owner should suffer financial loss. If  anyone has a financial loss,  the developer will need to compensate those owners enough in order for the approval to go through.

 

This is why if a sales committee can get 100% consensus, then SB approval is not needed anymore.  Because this clearly means everyone is happy and nobody is gonna get a loss.

[Kopites]

The above not likely to happen because one of the condition for Strata Board to give approval is that no owner should suffer financial loss. If anyone has a financial loss, the developer will need to compensate those owners enough in order for the approval to go through.

 

This is why if a sales committee can get 100% consensus, then SB approval is not needed anymore. Because this clearly means everyone is happy and nobody is gonna get a loss.

Sim lin still standing as of today.

[Ignissport]

Sim lin still standing as of today.

[Vratenza]

The above not likely to happen because one of the condition for Strata Board to give approval is that no owner should suffer financial loss. If anyone has a financial loss, the developer will need to compensate those owners enough in order for the approval to go through.

 

This is why if a sales committee can get 100% consensus, then SB approval is not needed anymore. Because this clearly means everyone is happy and nobody is gonna get a loss.

It is not unheard of the potential enbloc being factored into the asking price of a development. The nearer it is to achieving the enbloc, the higher the asking.

 

Plus, older resale condo units usually requires quite abit of renovation to update it, so it is understandable that one may spend up to 150k (furnishing included) to do up the place if they really buy in to stay.

 

So these 2 factors might push the owner into financial loss given that recent enbloc deals that went through, the profit margins were not they used to be as large compound good plot ratio developments are all enbloc.

 

The original owners are the ones that are least likely to suffer financial loss.

 

Flippers, well, let's just say they deserve it if they suffer any financial loss..unlikely since they are unlikely to renovate the unit while waiting for enbloc.

 

The real genuine new owners are the ones who are most likely to be disadvantaged by enbloc.

[Icedbs]

It is not unheard of the potential enbloc being factored into the asking price of a development. The nearer it is to achieving the enbloc, the higher the asking.

 

Plus, older resale condo units usually requires quite abit of renovation to update it, so it is understandable that one may spend up to 150k (furnishing included) to do up the place if they really buy in to stay.

 

So these 2 factors might push the owner into financial loss given that recent enbloc deals that went through, the profit margins were not they used to be as large compound good plot ratio developments are all enbloc.

 

The original owners are the ones that are least likely to suffer financial loss.

 

Flippers, well, let's just say they deserve it if they suffer any financial loss..unlikely since they are unlikely to renovate the unit while waiting for enbloc.

 

The real genuine new owners are the ones who are most likely to be disadvantaged by enbloc.

 

Like I have said, if anyone thinks he has a financial loss,  he should put that up to Strata Board and if the case is genuine, then SB will certainly halt the enbloc approval.

[Mkl22]

hi, there are the old and new method of calculating share value. My estate happens to be using the old method of calculating share value(which favours smaller unit) and this old method of share value was utilised in the recent enbloc proposal apportionment payout. However with the latest cooling measure in place, I foresee a very little chance of going enbloc.

 

I will like to ask if let's say the estate goes enbloc in the next cycle maybe 10 years later, will the old method of calculating share value be used ?

It’s always a percentage of floor area and share value. It’s can be 70-90% of floor area and 30-10% of share value. It will never be 100% floor area. Unless it’s a small development where all units are same size and there is no difference.

[Vratenza]

Now is majority approval it will pass. Those that did not give approval still remain in the minority. So if just one unit suffers a financial loss, the SB will stop the enbloc sale? 

 

Wonder why still hear stories of car tyres punctured, scratched... 

Like I have said, if anyone thinks he has a financial loss,  he should put that up to Strata Board and if the case is genuine, then SB will certainly halt the enbloc approval.

 

[Icedbs]

 So if just one unit suffers a financial loss, the SB will stop the enbloc sale? 

 

 

Yes.

 

One of the condition for SB to approve  en bloc sale is nobody should suffer financial loss.

Edited July 13, 2018 by Icedbs

[Mustank]

https://youtu.be/IVEWGINMtHc

[Victor68]

Yes.

 

One of the condition for SB to approve  en bloc sale is nobody should suffer financial loss.

even if you buy at the highest peak and pump in money to renovate and big loan? like that sb might as well require unanimous approval instate of 75% right? 

[Matrix0405]

What are the projects out for tender that likely be stopped by the recent cooling measures?

[Icedbs]

even if you buy at the highest peak and pump in money to renovate and big loan? like that sb might as well require unanimous approval instate of 75% right? 

 

Let me explain the enbloc process.

 

First the residents form a sales committee (SC). SC then appoint marketing agent and the lawyer.

 

Marketing agent will help SC to first get 80% consensus. This 80% is not to get SB approval.  It is to allow the SC to give out tender to interested developers.

 

Assuming they get a developer, SC can then seek SB approval.  It is at this stage that SB will have to evaluate the concerns of those un-consenting owners.  If any of the un-consenting owners here prove they have a financial loss, then SB will halt the approval process.

 

However if the consensus they got is 100%, then SB approval is not required.  Because this is already clear that everybody is happy and nobody is having a loss.

[Ignissport]

Fight fight fight neighbour become enemy because of $$$$....singapore no war no natural disaster only HUMAN DISASTER...all kill each other cos of $$$$

 

Strata Titles Board issues stop order for Cairnhill Mansions en bloc sale

Penthouse unit owner refuses to withdraw objection to how sales proceeds apportioned; case could be headed to court

TUE, JUL 03, 2018


A SECOND collective sale attempt in a week has come up against a speed hump: the Strata Titles Board (STB) on Monday issued a stop order on the en bloc sale bid by Cairnhill Mansions, which could send this case to court.

The Business Times has learned that the owner of the penthouse unit, the only owner who filed an objection to the collective sale bid by the 61-unit Cairnhill Road development, has refused to withdraw her objection to the method of apportionment of the sales proceeds - and this, after two rounds of mediation on May 28 and June 18.

The issuance of the stop order puts an end to mediation, and gives the collective sales committee (CSC) 14 days to apply to the High Court to approve the sale.

This comes on the heels of the stop order issued last Wednesday for the en bloc sale attempt at Goodluck Garden in Toh Tuck Road over the reserve price and development charge.

Construction and property development company Low Keng Huat had bought the 43,103 sq ft Cairnhill Mansions for S$362 million in February via private treaty after the tender closed in December 2017. This was Cairnhill Mansions' fifth attempt at a collective sale.

The owner-occupier of the sole 792 sq m penthouse was supposed to pocket S$15.17 million from the sale; the owners of the other units, which are 188 sq m in size, were to have received S$5.77 million apiece.

But BT understands the penthouse owner disagrees with how the sum of money each owner will get was arrived at. BT found out that each unit's share of the proceeds was determined by the average of three valuations produced by different consultancies, as a proportion of the average valuation of all the units.

The penthouse owner objects to the assessments of the value of her unit because they were made in 2010, without valuers having entered her unit to inspect it; she contends that they may thus not have properly accounted for the amount of enclosed space her unit has.

Marketing agent CBRE declined comment.

The lawyers representing the CSC are Lee Liat Yeang and Ling Tien Wah of Dentons Rodyk & Davidson; those representing the objector are Adrian Tan and Ong Pei Ching of TSMP Law Corporation.

Sing Tien Foo, director of the National University of Singapore's Institute of Real Estate Studies, said the method of apportionment is a critical part of a collective sale.

Kenneth Szeto, a partner at law firm Withers KhattarWong, said the law says the method of apportionment must be fair and equitable, but largely does not provide specific guidelines.

The Singapore Institute of Surveyors and Valuers (SISV) recommends that one or a combination of methods be used for apportionment. These are valuation, strata area (floor area of the unit) and share value (which determines the share an owner has in the common property, his or her voting rights, and amount payable for maintenance of the property).

Owners typically approve by vote the method of apportionment in an extra-ordinary general meeting.

Mr Szeto said most residential en bloc sales consider share value and strata area. The weightage is determined by the property consultants, since in some cases, the difference in strata area may not be proportionately reflected in the share value allocated to the different-sized units.

Nicholas Mak, executive director of ZACD Group, said residential developments tend to opt for a combination of strata area and share value, as these concepts are easily understood by owners. However, valuations can be contentious because of their more subjective nature, he said.

An independent valuer's report confirming that the method of apportionment is fair and equitable must be submitted as part of the application to the STB for a sale order.

BT understands that Cairnhill Mansions' CSC will have five months to obtain a sale order from the High Court under the sale-and-purchase agreement with Low Keng Huat. The long stop date is 14 months from the date of the contract, or if the purchasers are unable to obtain outline planning permission within eight months from the date of the contract.

In the cases of Cairnhill Mansions and Goodluck Garden, the High Court will consider the merits of their respective CSCs' application for a sale order, and decide whether there are grounds against the granting of the this order, said Tan Ching Chern, another Withers KhattarWong partner.

In the en bloc boom in the last decade, the Holland Hill Mansions collective sale bid also went to court. The High Court held that the objector to that sale would have been paid more if the method of apportionment had been done only on the basis of strata area. However, the court ruled that the 50-50 strata-area and share-value methods used in calculating apportionment had not been made in bad faith. The Court of Appeal upheld this decision and the collective sale was successfully completed.

In the case of Gilstead Court, the Court of Appeal held that asking the minority to pay double the amount that the majority had paid initially to contribute to the costs of the collective sale was an act that lacked good faith.

A Low Keng Huat representative told BT it could not take action until it had heard of STB's move from its lawyers.

[Kusje]

Wondering if any "confirmed" enblocs will fall thru.

[Ignissport]

Wondering if any "confirmed" enblocs will fall thru

 

seems like this country no need study hard no need work hard...just buy right property u huat x 3 can retire [crazy]for a  lucky few....one of my friend bought tampines court $400k...recently i met him...laughing all way to bank...$1.7M...few years ago i visit his house like damm shiok so big..1700 sq feet..me stupid...that time no brain to buy...he told me to buy so we can be neighbours...i also gong gong...neber buy...now lan lan...oh got to go cannot type anymore boss coming     work work work until balzzzz drop  

[BanCoe]

its always the penthouse owner KPKB one....... dont know if they are greedy or aggrieved but i cannot imagine a 792 sqm unit which is like over 8500 sq ft apartment here in the first place with 15million can get a landed equivalent I'm quite sure and I am sure his apartment might be already a 2 or 3 level unit most likely (with the top floor open space only mostly) 

 

 

Fight fight fight neighbour become enemy because of $$$$....singapore no war no natural disaster only HUMAN DISASTER...all kill each other cos of $$$$

 

Strata Titles Board issues stop order for Cairnhill Mansions en bloc sale

Penthouse unit owner refuses to withdraw objection to how sales proceeds apportioned; case could be headed to court

TUE, JUL 03, 2018


A SECOND collective sale attempt in a week has come up against a speed hump: the Strata Titles Board (STB) on Monday issued a stop order on the en bloc sale bid by Cairnhill Mansions, which could send this case to court.

The Business Times has learned that the owner of the penthouse unit, the only owner who filed an objection to the collective sale bid by the 61-unit Cairnhill Road development, has refused to withdraw her objection to the method of apportionment of the sales proceeds - and this, after two rounds of mediation on May 28 and June 18.

The issuance of the stop order puts an end to mediation, and gives the collective sales committee (CSC) 14 days to apply to the High Court to approve the sale.

This comes on the heels of the stop order issued last Wednesday for the en bloc sale attempt at Goodluck Garden in Toh Tuck Road over the reserve price and development charge.

Construction and property development company Low Keng Huat had bought the 43,103 sq ft Cairnhill Mansions for S$362 million in February via private treaty after the tender closed in December 2017. This was Cairnhill Mansions' fifth attempt at a collective sale.

The owner-occupier of the sole 792 sq m penthouse was supposed to pocket S$15.17 million from the sale; the owners of the other units, which are 188 sq m in size, were to have received S$5.77 million apiece.

But BT understands the penthouse owner disagrees with how the sum of money each owner will get was arrived at. BT found out that each unit's share of the proceeds was determined by the average of three valuations produced by different consultancies, as a proportion of the average valuation of all the units.

The penthouse owner objects to the assessments of the value of her unit because they were made in 2010, without valuers having entered her unit to inspect it; she contends that they may thus not have properly accounted for the amount of enclosed space her unit has.

Marketing agent CBRE declined comment.

The lawyers representing the CSC are Lee Liat Yeang and Ling Tien Wah of Dentons Rodyk & Davidson; those representing the objector are Adrian Tan and Ong Pei Ching of TSMP Law Corporation.

Sing Tien Foo, director of the National University of Singapore's Institute of Real Estate Studies, said the method of apportionment is a critical part of a collective sale.

Kenneth Szeto, a partner at law firm Withers KhattarWong, said the law says the method of apportionment must be fair and equitable, but largely does not provide specific guidelines.

The Singapore Institute of Surveyors and Valuers (SISV) recommends that one or a combination of methods be used for apportionment. These are valuation, strata area (floor area of the unit) and share value (which determines the share an owner has in the common property, his or her voting rights, and amount payable for maintenance of the property).

Owners typically approve by vote the method of apportionment in an extra-ordinary general meeting.

Mr Szeto said most residential en bloc sales consider share value and strata area. The weightage is determined by the property consultants, since in some cases, the difference in strata area may not be proportionately reflected in the share value allocated to the different-sized units.

Nicholas Mak, executive director of ZACD Group, said residential developments tend to opt for a combination of strata area and share value, as these concepts are easily understood by owners. However, valuations can be contentious because of their more subjective nature, he said.

An independent valuer's report confirming that the method of apportionment is fair and equitable must be submitted as part of the application to the STB for a sale order.

BT understands that Cairnhill Mansions' CSC will have five months to obtain a sale order from the High Court under the sale-and-purchase agreement with Low Keng Huat. The long stop date is 14 months from the date of the contract, or if the purchasers are unable to obtain outline planning permission within eight months from the date of the contract.

In the cases of Cairnhill Mansions and Goodluck Garden, the High Court will consider the merits of their respective CSCs' application for a sale order, and decide whether there are grounds against the granting of the this order, said Tan Ching Chern, another Withers KhattarWong partner.

In the en bloc boom in the last decade, the Holland Hill Mansions collective sale bid also went to court. The High Court held that the objector to that sale would have been paid more if the method of apportionment had been done only on the basis of strata area. However, the court ruled that the 50-50 strata-area and share-value methods used in calculating apportionment had not been made in bad faith. The Court of Appeal upheld this decision and the collective sale was successfully completed.

In the case of Gilstead Court, the Court of Appeal held that asking the minority to pay double the amount that the majority had paid initially to contribute to the costs of the collective sale was an act that lacked good faith.

A Low Keng Huat representative told BT it could not take action until it had heard of STB's move from its lawyers.

 

[Enye]

wah...792 sqm penthouse

 

must be a mansion

 

 

[Victor68]

Let me explain the enbloc process.

 

First the residents form a sales committee (SC). SC then appoint marketing agent and the lawyer.

 

Marketing agent will help SC to first get 80% consensus. This 80% is not to get SB approval.  It is to allow the SC to give out tender to interested developers.

 

Assuming they get a developer, SC can then seek SB approval.  It is at this stage that SB will have to evaluate the concerns of those un-consenting owners.  If any of the un-consenting owners here prove they have a financial loss, then SB will halt the approval process.

 

However if the consensus they got is 100%, then SB approval is not required.  Because this is already clear that everybody is happy and nobody is having a loss.

i fully understand and appreciate the process. in theory, it is an unanimous agreement. the fact you have the 80% quota is to be able to 'push though' via sb. now it is the 20% to justify why they are not agreeing.

 

financial loss also need to justify otherwise where got so many high court cases to fight right.