CBS Buildings - Workflow of Facilitation Project
- URFS aims at arranging joint sale of the assembled property interests’ ownerships within about 10 months Note 1 since the date of the selection of application:
- Upon the request of all the Participants and subject to URFS’s absolute discretion, the Participants may be allowed one opportunity to put up the assembled interests for joint sale even if the Joint Sale Threshold cannot be reached before the deadline for the Facilitation Project stated in the Facilitation Agreement.
- After reaching Stage IV, an independent valuation consultant will be appointed by URFS on behalf of the Participants to assist them in setting the reserve price and agreeing on the sharing ratios for distribution of the sale proceeds obtained from a successful joint sale. The Participants shall sign a Joint Sale Agreement confirming their agreement to sell their property interests jointly subject to the reserve price and to share the sale proceeds among themselves in accordance with the agreed sharing ratios.
- However, to increase the chances of a successful joint sale, URFS will, after the first failure in tender or joint sale auction, go over the services of Stage IV for the Joint Sale Agreement Participants for one more time, subject to the following conditions:-
- Within 3 months from the date of tender or auction, the owners whose aggregate undivided shares reaching the Joint Sale Threshold shall submit a request to URFS to go over again the Stage IV service for one more time together with appropriate adjustments made to the conditions of sale and joint sale agreement among owners, including reserve price, and
- URFS is unaware of any acquisition activities by developers after the failure of the first joint sale attempt by auction or tender.
- Property interests covered by the Joint Sale Agreement will be sold in an auction or by tender to the purchaser offering the highest bid which attains the reserve price. If the reserve price is not met and upon the request of the Participants who have signed the Joint Sale Agreement, the Joint Sale Services will be terminated.
| Stages | Service | |
|---|---|---|
| Stage I (Receiving enquiries) |
- Receiving enquiries - URFS replying enquiries and providing information about Joint Sale Service |
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| Stage II (From receiving an application to decision on the application) |
- Processing the applications by URFS - Selection of application |
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| Stage III (From accepting the application to the percentage threshold of owners' participation for Joint Sale) (About 6 months) |
- URFS holding an initial meeting with all owners to provide information on the preliminary feasibility studies and procedures for the Joint Sale Services - Owners returning their Joint Sale Intention Slips to URFS for their Joint Sale consensus - Participants signing Facilitation Agreement with URFS to reach the Joint Sale Threshold* and paying the service fees |
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| Stage IV (From confirmation that threshold to proceed Joint Sale has been reached to Joint Sale to take place) (About 4 months) |
- URFS appointing consultants on behalf of the Participants, coordinating and monitoring the services provided by the consultants - URFS assisting the owners applying for the Waivers from Civil Service Bureau and the assessment of land premium - Participants signing Joint Sale Agreements after reaching an agreement on the reserve price and sharing ratios - URFS arranging the Joint Sale by auction or tender |
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| * Joint Sale Threshold Note 2 | ||
| Age of buildings (years) | “Designated areas” Note 3 | “Non-designated areas” |
| <50 | 90% | |
| 50 to 59 | 70% | 80% |
| 60 to 69 | 65% | 70% |
| ≥70 | 65% | |
| Note1： | The actual period of time depends on the total number of applications for the Waivers and the removal of alienation restriction required to be processed for the Participants. | Note2： | Referring to Compulsory Sale Application Thresholds set out on page 5 of the Legislative Council Brief of the Land (Compulsory Sale for Redevelopment) (Amendment) Bill 2023 issued by the Development Bureau on 19th December 2023 [File Ref: DEVB (PL-UR)70/41/85/15] |
| Note3： | Designated areas cover: Cheung Sha Wan (the same Outline Zoning Plan covering Sham Shui Po), Ma Tau Kok (covering Kowloon City and To Kwa Wan), Mong Kok, Sai Ying Pun and Sheung Wan (covered by the same Outline Zoning Plan), Tsuen Wan, Wan Chai, and Yau Ma Tei |