Bayshore Park condominium, a 21-year-old estate with over 1,000 apartments, is exploring the possibility of an en bloc sale.It took a formal step on Saturday by holding an extraordinary general meeting to elect an en bloc sales committee.
With changes to the Land Titles Strata Act expected to kick in next month, what happens to potential en bloc sale properties that are caught in-between these changes?
After the two-hour meeting, an 11-member en bloc sales committee was confirmed by residents at the development.
But will such processes hold when the amended Act is enforced?
Related Video Link - http://tinyurl.com/3c3r2z
Bayshore Park Holds EOGM To Elect En Bloc Sales Committee
Lee Liat Yeang, Partner, Rodyk & Davidson, says: "I think it is advisable for an estate which is contemplating an en bloc sale to wait till the new legislation is fully enforced before they proceed, because it is necessary for them to understand the intricate processes that the government has prescribed in the new legislation."
But according the law firm Khatter Wong, the formation of the en bloc sales committee on Saturday by the residents is lawful and will comply with the amended act.
The changes to the act, which are aimed at providing more safeguards and transparency for all owners, will come into effect next month.
And there is a reason why residential properties like Bayshore Park are not waiting until the amended act is enforced.
Mr Lee says: "They are rushing for it. It could be because from a commercial point of view, they're concerned there could be many other projects in the vicinity who may also be thinking of going for en bloc sale. And perhaps they want to kick-start the process quickly."
And its newly-formed en bloc sales committee will no doubt be busy getting the necessary 80 percent support it needs for the en bloc sales process to move forward. - CNA/ch
A weak showing, only 62% of share value present at the meeting was in favor, 38% voted against.
ReplyDeleteFloor requested 14 members, only 11 could be found.
Since only 43% of total share value was present, this means 27% of total share value were for and 16% of total share value were against.
Getting 80% will be an illusion because clearly much more than 20% are against. Indeed, if 38% of the 43% that did attend are against, it is safe to assume that at least 10% of the 57% that did not attend are against. Even more so because many who did not want en bloc boycotted the meeting.
I think it is not right to assume that those who did not attend the meeting means they are against the enbloc or have boycotted the meeting. It could be becoz they prefer remaining behind the scene, or that some owners are not in Singapore to begin with.
ReplyDeleteActually, in my opinion, those who are really dead against enbloc will most probable turn up (if not in full force) for such meeting - simply becoz they want to be heard, and heard out loud. No point or reason for them to be quiet at this juncture?
If going by your assumptions:
10% of 57% absent share value= 5.7% are against
+
16% of the total share value are against
= 21.7% are against.
The En Bloc SC thus only need to persuade 1.7% of the against share value to swing to their favor, which I would think is a very easy task to accomplish.
Now the question is, whether there would be any developers to buy Bayshore Park? and at what price?