Revised Reserve Price... Just a ploy to entice more SPs to sign CSA ??


Dear fellow owners at Teresa Ville,

We have good news and bad news.

The good news is that after much indirect pressure from our group, the Collective Sale Committee (CSC) has finally agreed to raise the Reserve Price.

The bad news is that they are only raising it slightly in the hope to entice more owners to sign the Collect Sale Agreement (CSA) but they did not raise it to reflect the real financial value of the Teresa Ville site.

In as early as the start of this year, Huttons agents had already told the CSC that the reserve price could be set above $1 billion. But they also advised the CSC to set it lower than $1 billion, so they can have space to maneuver if the CSA signing slows down.

How can a property agency and a committee that is elected by the owners to represent the best interest of all owners even agree to set the reserve price at an amount that is lower than the property’s true redevelopment market value?

The answer is that certain owners are more interested to sell their units in an enbloc sale, even if it means selling our Teresa Ville land at a lower price. They are willing to get the other owners, by hook or by crook, to sell their Teresa Ville homes at a price that is lower than the true redevelopment market value.

In our first Information Session held on 10 Feb 2018, we have explained in details why a developer could earn an extra $421 million in addition to the profit that he could already earn, if he were to buy Teresa Ville for $990 million.

Therefore, if we, the owners of Teresa Ville, were to share half of this $421 million extra profit with the developers, we should increase our Reserve Price by another $210.5 million.

If you add them up, you will get $1.2 billion.

Initial reserve price:                      $990 million
Add Half of additional value:       $210.5 million
New reserve price should be:       $1.2 billion

Do not be taken in by this ploy. The redevelopment potential of the Teresa Ville site is more than $1.2 billion. But asking for $1.2 billion, we are ensuring that the reserve price is still attractive to potential developers and we, the owners, will still get enough money from the enbloc sale to buy our replacement homes.

In our next post, we will share with you some disturbing fake news that are being spread to get the owners to sign the CSA. Remain tuned to this blog.. Thanks

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