Tea & Info Session on the En-Bloc.... Saturday Feb 10 at 2.30 PM... Teresa Ville Function Room

Dear Teresaville SPs,

1.       You have one year to sign the Enbloc CSA, so please take your time to make this important decision.  Attached is some information that may be of interest.

2.       You are invited to join us for:

Tea & Info Session on the Enbloc,   focusing on the valuation for Teresa Ville   Date:      Saturday, 10 Feb 2018   Time:      2:30 PM   Venue:   Teresa Ville Function Room   Tea and light refreshments will be served

RSVP:     Please Whatsapp your name, building & unit number to 9134-5119

Please Note:       This is a private session to help SPs understand their options and the potential valuation of Teresa Ville. It is not an EOGM, and organisers reserve the right to request those who cause undue/ unproductive disruption to leave the room.

About the organisers:           We are a group of fellow SPs from diverse backgrounds - investors, families with young children, retirees, etc. We are not against an Enbloc, but are concerned by the lack of transparency and discussion on important factors that can contribute to a higher valuation for Teresa Ville (see attached info).  We believe that the current Reserve Price in the CSA undervalues Teresa Ville (a rare freehold asset in a central location), and will hand most of the upside/ profits from this sale to the developer rather than the SPs.

-------------------------------------------------------------------------------------------------------------------------

TERESA VILLE ENBLOC RESERVE PRICE

..CONSIDERATIONS FOR AN INFORMED DECISION

对于TERESA VILLE集体出售保留价的的关键考虑

Dear Fellow SPs,

We would like to share with you the considerations below to assist you with this major enbloc decision that impacts your family home and personal wealth. Signing the Collective Sales Agreement (“CSA”) is a very important decision as it gives the Collective Sales Committee (“CSC”) broad decision rights regarding the collective sale if the Minimum Price i.e. Reserve Price (“RP”) is met (subject to other customary clauses).

我们想与您分享以下的考虑，以帮助您做出个明智的集体出售的决定。 签署集体出售协议（Collective Sales Agreement/”CSA”）是一项非常重要的决定。因为CSA 会给予集体出售委员会（”CSC”）广泛的决定权，保留价 (Reserve Price /“RP”)是 保护业主的关键条款。

This note is meant to highlight what we regard as important issues for the enbloc based on our research and analysis, and is not meant to be taken as advice on your decision regarding the enbloc. It is very important that you properly consider all relevant information for your independent and rational consideration.

本文旨在强调基于我们的研究和分析，我们认为集体出售的重要问题，并不意味着做为业主（”SP”）对集体出售决策的建议。 为了您的独立和理性的考虑，您要妥善考虑所有相关信息。

Please visit http://www.teresavilleowners.com/ and email teresavilleowners@gmail.com for queries.

  

Sincerely,

Your fellow SPs who have done their homework

------------------------------------------------------------------------------------------------------------------------

1.   HAVING THE RIGHT RESERVE PRICE IN THE CSA IS YOUR BEST SAFEGUARD – you cannot rely entirely on the CSC and Huttons to push for the most optimal reserve price for all SPs.

在CSA中拥有最合理的RP是SP最好的保障 : SP不能全靠CSC和Huttons来建议最优RP

·       The CSA gives the CSC significant powers to make decisions on behalf of SPs. The key protection SPs have is that the sale price cannot be below the Minimum Price (i.e. RP).

CSA赋予CSC重大权力代表SP进行集体出售，SP的最佳保障是RP因为最终交易价格不能低于RP。

·       The CSC comprises of an overwhelming majority of members in favour of completing the enbloc quickly.

CSC由绝大多数强力倾向集体出售的成员组成，并且这些成员都急着尽快完成集体出售。

·       Note that a few “independent” members of the CSC have resigned, who were not part of the original pre-prepared "Group of 7" -   see  http://www.teresavilleowners.com/2017/07/some-observations-reflections-by-sp-who.html and http://www.teresavilleowners.com/2017/09/was-csc-properly-elected-at-eogm.html

请注意，CSC的一些“独立”成员已经辞职。

·       Huttons is paid only if an enbloc happens – Huttons would prefer the certainty of a lower commission at a lower RP, rather than a higher but less certain commission.

Huttons只有在集体出售成功后时才能收到佣金 – 因此 Huttons不会倾向于取得最高的RP，Huttons会建议一比较高成交和确定性的RP

·       The CSC may try to persuade SPs to just sign the CSA first on the basis that they can always increase the RP later. Please think carefully if you wish to make that leap of faith. Or would it be wiser to sign the CSA only if it reflects the fair RP i.e. a price level SPs will not regret selling at should the RP end up being the actual sale price one year down the road.

CSC可能会试图说服SP们先签署CSA，说之后他们可以随时增加RP。 请仔细考虑一下因不因该相信这一点。CSA的RP应该是个SP不会后悔卖出的价格。SP 在签合同之前要肯定自己对CSA里的RP价钱感到满意。

2.   DOES THE RESERVE PRICE IN THE CSA REFLECT THE FOLLOWING SIGNIFICANT FACTORS? If not, the CSC is asking SPs to sign the CSA on the basis of a half-baked Reserve Price.

在CSA中提出的RP是否反映了以下重要因素？ 如果不是，最有可能的情况是，CSC要求SP根据未经证实的RP签署CSA。   

·       Higher approved “baseline” plot ratio of 2.9 (= total gross floor area ÷ site area)

的实际容积率 (建筑面积÷ 土地面积)是 2。9

·       From the last EOGM, we know that the RP was derived by Huttons assuming the 2014 Master Plan 2.5 plot ratio. However, based on our research, the actual built up plot ratio for Teresa Ville is estimated to be 2.8 - 2.9.

从去年最后一回的EOGM，我们知道RP是由Huttons假设2014年Master Plan总体规划2.5的容积率推侧出来的。 根据我们的研究，Teresa Ville实际容积率估计为2.8-2.9。

·       Many recent enbloc deals reflect a land per square foot (“psf”) pricing on the basis of the higher baseline plot ratio, meaning that it is possible for the developer to build and sell more gross floor area (“GFA”) beyond that allowed by the Master Plan plot ratio if URA allows the higher baseline plot ratio to be used (see Appendix for examples marked by asterix *)

请注意，最近报道的很多集体出售交易都是基于较高的实际容积率反映了每平方英尺土地（“psf”）的价格，这意味着开发商有可能建造和销售更多的建筑面积（“GFA”）。（见附录中以星号*标记的例子）

·       Plot of State Land beside Teresa Ville that can be combined with Teresa Ville site

Teresa Ville旁边的国有土地，可以和Teresa Ville的土地合并开发

·       From the map, the State Land (bordering AYE & Lower Delta Road) looks 50-75% as large as the Teresa Ville site. Developing this together with Teresa Ville can give the developer additional GFA (like a higher plot ratio) and hence profits, which can influence the RP of Teresa Ville.

从地图上看，Teresa Ville隔壁国土（接近AYE和下Lower Delta Road）看起来有Teresa Ville的土地面积的50-75％。 与Teresa Ville一起开发，可以为开发商提供额外的总建筑面积和利润。确认这一点能帮忙提高Teresa Ville的RP。

·       Given that the above can increase the value of Teresa Ville by 15-20%, it is important that the above questions are answered before the CSA is signed. If not, the CSA should be amended to address how the potential increase can be priced and shared with SPs if it materialises.  

上述两点如果有可能能包括在Teresa Ville的出售卖点可以使Teresa Ville的价值上涨至少15-20％，所以在CSA签署之前了解上述问题是非常重要的。 如果不能的话，CSA应该被修改，以解决如果上行通过，SP如何定价和分享这些所谓的潜在开发利润。

3.   PROPOSED RESERVE PRICE of $990m UNDER-PRICES TERESA VILLE SITE - MARKET COMPARISON SUGGESTS  $1.2b  IS FEASIBLE

RP9.9亿元的价格低估了TERESA VILLE的价值 　-　 市场比较表明，12亿元是可行的

  

Teresa Ville Land Price ($psf per plot ratio) Implied –

at Master Plan 2014 Plot Ratio:                    at Higher Baseline Plot Ratio:

·       Recent land transaction/ enbloc asking prices (see Appendix) indicate that the RP can be in the $1.2b range ($1,500-1600 psf). The CSC needs to thoroughly justify why they are recommending only $990m.

最近的土地交易/要价（见附录）表明，RP可以在12亿元范围内（$ 1,500-1600 psf）。 CSC需要彻底证明为什么他们只推荐9.9亿元。

·       Note that Sun Rosier @ Bartley was sold for $1,325 psf land price, which is higher/ on par to the ~$1,296-1,350 psf land price implied by a $990m RP. Teresa Ville is in a more central location!

请注意，Sun Rosier @ Bartley以$1325psf的土地价格出售，相当于9.9亿元RP的等值地价$1,296-1,350psf。 Teresa Ville尚处于更加中心的位置！

4.   REPLACEMENT PROPERTY PERSPECTIVE – Need at least $1.3b Reserve Price to not have to downgrade size or location

购买替换住宅角度：至少需要13亿元的RP，不然SP的住宅生活水平会有所降级

• The table below shows the implied price of the replacement property an SP can afford without having to downgrade in terms of apartment size.

下表显示根据RP水平，SP可所承担购买同等面积的替换住宅的价格。

• The lower the efficiency of the replacement property (e.g. space used for non-enclosable balcony, planter box, AC ledge), the lower is the implied price of the replacement property that can be purchased from the enbloc proceeds. See Appendix for illustration.

市场比Teresa Ville较新建的住宅的一般实际面积使用率越低（例如，用于不可封闭的阳台，花盆箱，交流台架的空间）。如果SP要在替换住宅保持跟Teresa Ville同等的使用面积，这会影响从enbloc收益中购买替换住宅的可承受价格。 请参阅附录以获得实际面积使用率的说明。

• The above analysis has not factored in other costs e.g. renovation, transaction (Buyer & Seller Stamp Duties), relocation costs etc. which would further lower the price of the replacement property that can be purchased with the enbloc proceeds.

上述分析没有考虑其他成本，例如 更新，交易，搬迁成本等。这将进一步降低可以用集体出售收益购买的替换住宅的价格。

·       Rising resale market prices and new sales launch pricing

不断上涨的房价会使购买替换住宅的难度加大，除非SP愿意降低住宅生活水平

·       At RP of $990m, SPs can afford a replacement property at a price no higher than $1765 psf without compromising on usable area, assuming a high efficiency of 90% in the replacement property (note that this can be as low as 60% in some properties). What can this buy?

根据9.9亿元的RP和保守假设90%的实际面积使用率, SP只能买不超过$1765psf价格的住宅。这个价格能在市场上买到什么住宅？　

·       Not even a leasehold property in District 3/4: Note asking price of Highline Residences (99y) at $1800-1900 psf, Echelon (99y) at $2000 psf, Corals at Keppel Bay (99y) at $2500 psf, Reflections at Keppel Bay (99y) at $2700 psf, Skyline Residences (FH) at $1800-2000 psf

在地区District 3　和District 4,现售的９９年期限公寓的要价已经超越了这个价格水平。

·       For new launches, one could consider the future redevelopment of Brookvale Park at Sunset Way… if you want to move out that far!

如果SP愿意搬到Sunset Way,可能有机会买这里未来的Brookvale Park的重建项目。

·       “2018 new launches in the Rest of Central Region are predicted to hit well above $1700 psf – PropNex Realty CEO; Even Parc Botannia (99y property at a suburban and less mature location like Sengkang) was selling at ~$1,300 psf as of Nov 2017

PropNex Realty CEO预计２０１８年的新售住宅项目在Rest of Central Region地点估计会超越$1700 psf。截至２０１７年１１月，位于Sengkang的Parc Botannia的售价已经达到了接近$1300 psf。

·       Expected future selling price for the redeveloped Teresa Ville was estimated to be at $2400 psf as presented during the July 2017 EOGM before the residential market showed clear signs of picking up. This implies the minimum RP needs to be at least $1.3b for SPs to not downgrade in terms of location, property tenure and usable area.

2017年７月，在住宅市场出现明显回暖迹象之前，Huttons预计未来的重建Teresa Ville的售价预计为$2400 psf。这意味着SP的最小RP至少需要13亿元，才能购买一个不导致生活水平降级的替换住宅。　

·       Do not count on the resale market for replacement property

不要指望能在二手市场轻易买到替换住宅

·       Shrinking and tight resale market - number of resale listings significantly declined due to owners not selling or a pending enbloc

转售市场供应和转售的次数大大减少

·       Competing with other displaced owners of other enbloc properties buying replacement properties

与其他集体出售项目的业主竞争购买替换住宅。

·       Growing rarity of Freehold projects – may not be easy to find a replacement Freehold property

永久地契（Freehold）的住宅项目在新加坡是越来越稀少，尤其在Teresa Ville这个黄金地段。

5.               INVESTMENT PROPERTY PERSPECTIVE  - Teresa Ville has good long term underlying value as an investment given its Freehold land tenure, central location & accessibility, large land size, and future urban redevelopment catalysts e.g. Southern WaterFront

投资物业角度：Teresa Ville由于永久地契，中央位置及交通便利，土地面积较大以及未来市区重建的催化剂（例如：Southern WaterFront）等因素,具有良好的长期基础价值及上升空间

·       If you own Teresa Ville for investment, the right RP depends on a trade-off between factors like immediate liquidity, lost future upside, reinvestment risks (challenges in today’s market, be it in Singapore or other parts of the world), etc.

对于拥有Teresa Ville的SP进行从投资角度的正确RP评估取决于资金流动性，失去未来价值上升的风险，再投资风险等因素之间的权衡。

·       There are important aspects of Teresa Ville worth noting from an investment perspective

从投资的角度来看，Teresa Ville有很多值得注意的地方

·       Location, Location, Location – properties in good location tend to do well in the long term. The proximity or easy access to AYE, CTE, Downtown CBD, Southern WaterFront, 2^nd CBD at Jurong (high speed rail to KL), Sentosa/VivoCity, Orchard Road, Tiong Bahru, Mount Faber  (and famous parks along Southern Ridge hiking trail), and top education institutions makes the location “gold”

位置，位置，位置 ：位置良好的物业往往表现良好。 靠近市区CBD，AYE, CTE, Southern WaterFront，裕廊第二CBD（KL高速铁路），圣淘沙/怡丰城，乌节路，中峇鲁，花柏山（沿南里奇远足路径着名的公园）以及顶尖教育 机构给于Teresa Ville一个难以替代的“黄金位置”。

·       Teresa Ville is not “old” – many properties in other developed countries are of a similar age or if not older, and remain well sought after if in good locations and well maintained. Teresa Ville has a good sound concrete structure and does not face the long term issues that the prefabricated, glass/steel newer condos may face (according to views from architects, construction professionals). Teresa Ville has potential for repositioning to be of higher grade e.g. better security, nicer lobbies etc.

Teresa Ville并不是一个陈旧破烂的住宅项目。SP要考虑到其他发达国家的许多住宅，虽然房龄有好几十年，如果地理位置优越且维护良好，仍然受到追捧。 Teresa Ville具有良好的混凝土结构，不会面临预制的玻璃/钢制新型公寓可能面临的长期问题。 Teresa Ville也有重新定位和价值提升的潜力。

·       Anxiety to catch the enbloc wave and be competitive against the many enbloc sales may risk under-selling a rare well-located freehold investment asset.

如果SP太过着急追从集体出售，可能会导致低价出售稀有地段的永久产权资产。

·       The earlier analysis of replacement property considerations in Point 4 also holds true from a property reinvestment perspective – unless one is looking to sell just to monetize for immediate cash needs.

　

6.               Apportionment method gives commercial units (shops) a premium that requires good justification

分摊方法给于商业单位的溢价需要合理的解释

• Commercial units already hold an amount of share value (SV) ~35% greater than that implied by its strata area. On top of that, the CSC is recommending that the commercial units get allotted a notional strata area of 1.6x its actual area which residential units do not get. This is effectively “double-counting” the premium the commercial units get over residential units.

商业单位已经拥有的股份价值（SV）比住宅单位已经多35％。虽然住宅单位面积大商业单位３倍但是住宅的SV只有商业单位的２倍。此外，CSC还建议商业单位分配一个实际面积的1.6倍。 这实际上是商业单位对住宅单位溢价的“重复计算”。

• One may make the case that the commercial units should fetch a premium simply because they can be used for commercial purposes. The value of commercial units should be based on the amount of rent (and value of commercial activity) they can get. The commercial units are not ground floor units, not easily accessible by public, zoned residential, have a limited customer catchment – all negative attributes for shop and/or office use.

商业单位的价值应该以可以得到的租金（和商业活动的价值）为基础。 Teresa Ville的商业单位不是地面单位也有有限的客户流域，商业价值有限，所以不一定因为是商用就一定要比住宅单位更有溢价。

• Arguing that the commercial units make up only a percentage of total area and that it is “okay” to be generous with the commercial units is unfair – what about units in better facing and higher floors, or owners who have to pay Additional Buyer/ Seller Stamp Duty? While it is difficult to be “fair” to everyone in apportionment given the judgment call involved, we need to see a robust rationale for the apportionment method proposed by the CSC.

任何对商业单位溢价“give and take”的说法是不合理的。虽然我们认识到，鉴于所涉及的判决呼吁，在摊派中对每个SP“公平”不容易，但SP需要得到分摊方法的合理解释。

• Note that the CSC includes a member that has interest in the commercial units.

请注意，CSC会员包括了拥有商业单位的会员。

APPENDIX

Land Pricing Comparables Examples

• Hollandia (Jan 2018 tender):  Based on allowable GFA (equivalent PR of 2.03x), Hollandia has a RP land rate of $1515 psf per plot ratio. The Master Plan PR is 1.6x (FH) *
• Royalville (Dec 2017):               Sixth Avenue, transacted $1960 psf (FH)
• Crystal Tower (Dec 2017):       Ewe Boon Road, transacted $1840 psf at 1.623 baseline PR *
• Amber Park (Oct 2017):           Katong, transacted $1515 psf (FH)
• Balmoral Garden (Jan 2018):  asking $1872 psf (FH)
• Dunearn Garden (Jan 2018):  asking $1861 psf (FH) incl 10% bonus GFA
• The Wilshire (Dec 2017):         Farrer Road, asking $1525 psf (FH) based on existing GFA (baseline PR of 1.643 vs Master Plan PR of 1.6) *
• Cairnhill Heights (Dec 2017):  asking $2045 psf (FH) based on existing GFA (baseline PR of 3.08 vs Master Plan PR of 2.8) (Breakeven of $2400-2600 psf) *
• Casa Meyfort (Dec 2017):        asking $1540 psf (FH) incl 10% bonus GFA
• Vista Park (Dec 2017):              edge of Kent Ridge Park, transacted $1096 psf (incl top up to increase tenure from 60 yr to 99 yr)
• Brookvale Park (Dec 2017):    Sunset Way, asking $932 psf (FH) incl 10% bonus GFA, breakeven price at $1500 psf
• Jiak Kim GLS (Jan 2018):           99 year land sold at $1733 psf which saw 7 bids and a second highest bid only 0.6% lower from astute property tycoon Kwek Leng Beng

Illustration of Non-GFA areas that are included in Strata Area paid for in a Replacement Property

(Diagram shows floor plan of 3-bedder unit at Spottiswoode Suites)

Your unit at Teresa Ville does not include any non-GFA strata area. You can stand on and enclose every square foot of it. Your strata area = 100% GFA.