New Reserve Price not Guaranteed without amending CSA in EOGM..


Attention: Dear Fellow Teresa Ville Owners, who have not signed CSA.


On the evening of 4 April 2018, agents from Huttons distributed a letter dated 5 April 2018, claiming that the collective sale reserve price has been revised to $1.1 billion.

 We wish to advise all Teresa Ville owners to be cautious about this letter.

 Firstly, for the Reserve Price to be binding, it must be voted by a majority of owners present in an Extraordinary General Meeting (EOGM). In the previous EOGM that was held, a majority of the owners who voted to pass the Collective Sale Agreement (CSA) also set the reserve price to be $990 million. This $990 million is still the minimum price until it is changed in another EOGM.

Secondly, although the Collective Sale Committee (CSC) could increase the reserve price without holding an EOGM, they could also lower the reserve price later as long as the final reserve price is at or above the minimum price determined in an EOGM, which is still $990 million.

Thirdly, the price of $1.1 billion still undervalues the real re-development value of Teresa Ville. With the high development baseline of 2.9 (as confirmed by the letter from the URA) and the potential for the developer to buy the land next to Teresa Ville to join together with Teresa Ville, the real value of Teresa Ville is at least $1.2 billion.

Therefore, we caution all owners of Teresa Ville not to be taken in by this ploy. Do not sign the Collective Sale Agreement thinking that the final reserve price is really $1.1 billion.

The only way to protect and guarantee your interests is to confirm the reserve price in an EOGM.

Comments

  1. AnonymousApril 5, 2018 at 8:46 AM

    Hi, how long will they take to hold an EOGM since the letter is out?

    ReplyDelete
  2. AnonymousApril 10, 2018 at 6:19 AM

    As of today, the Collective Sale Committee (CSC) does not appear to be doing anything to hold an EOGM to confirm the “$1.1 billion reserve price”. It could take them about 3 weeks to call for an EOGM.

    We had asked a lawyer from one of the largest law firm in Singapore that had acted for either the owners or developers in many enbloc sales, to review the Teresa Ville Collective Sale Agreement (CSA).

    According to his advice, to “safeguard” the new reserve price, the reserve price stated in our CSA must be amended to $1.1 billion in either an EOGM, or the CSA be amended in writing by SPs holding not less than 80% of the share value and not less than 80% of the total strata area.

    Otherwise, at a later date, the CSC can lower the reserve price to an amount that is not less than $990 million or the valuation, whichever is the higher.

    As there is no attempt by the CSC to do either of the above, the confirmed reserve price remains at $990 million.

    ReplyDelete

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