Apologies for the lack of update. We've been busy compiling our notes and comparing them from the last meeting. We'll be putting these notes up shortly as well as our comments on them.
In addition, another letter arrived from Mr Lee. This time they have increased the Reserve Price (RP) by about 18%. We knew this was going to happen as it is a common tactic by agents and SCs to bump up the RP when the signature collection has stagnated, things are not moving along, or when they are facing a deadline.
And what deadline is this? Not the worry about financial market tsunamis, but of a Law coming into existence. Here's 3 things to think about before you sign the dotted line:
In addition, another letter arrived from Mr Lee. This time they have increased the Reserve Price (RP) by about 18%. We knew this was going to happen as it is a common tactic by agents and SCs to bump up the RP when the signature collection has stagnated, things are not moving along, or when they are facing a deadline.
And what deadline is this? Not the worry about financial market tsunamis, but of a Law coming into existence. Here's 3 things to think about before you sign the dotted line:
- A bump of 18% is significant. CBRE and the PSC obviously knows that this can be done. So why start at the amount stated in the CSA (henceforth named "X")? Improved market conditions (but didn't he worry about tsunamis?)? Or is it because $X is easier to secure a sale with a buyer? In other words, rather than getting the best possible value for your property, by initially starting with $X, the PSC has opted for the FASTEST way of selling your property. Put it another way, if 80% signed at $X on the 5 Aug, then ALL of us would not have received the 18% extra present.
- By increasing the RP, they are now pushing for the FASTEST way of getting 80%. But this beckons - if they can bump up by 18%, does that not speak volumes about HOW MUCH MORE THE ESTATE IS WORTH? Think about it this way - from not signing, you have just witnessed an 18% increase in value in your unit in less than 2 months. We reiterate our point - that we as owners need not worry about how valuable our estate is - we KNOW it is valuable, and it should be us who dictate the selling price. Eng Lok didn't become the highest en bloc sale of its time because it followed the market; it LED the market.
- The latest letter was very silent of concerns by owners about the Horizon Towers situation. Lately there are even more cases being brought to court or STB that are contested on legal grounds. Increasingly, points of law around the sale and the CSA are brought to question. Considering that the sale of the property will be of the same range as that of Horizon Towers and it is likely that only major developers like CDL, SC Global, HPL, Capitaland, etc will attempt to buy the estate, what are the consequences for majority owners if major issues are brought up at STB hearings or in court that might lead the case to be dismissed? Issues that are may be recognised and prevented under the new Law because it will force things to become systematic, transparent and fair? We are ultimately small buyers versus a major developer if it comes down to lawsuits and there is no written guarantee that what happened to Horizon Towers will not happen to us.
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