FAQ for CBS Buildings

• Question 1:

  How does “Facilitator” approach help owners of CBS buildings for disposal of their properties?

  The owners of CBS buildings can apply for Facilitating Services after accumulating not less than 40% of undivided shares. For an application which has been selected for further processing, URFS will assist owners to assemble titles for joint sale of their property interests. The services include:

  • Provide suitable information at the appropriate stages for the owners to make their own informed decision to participate in joint sale of their property interest under the Scheme;
  • providing assistance to owners to remove alienation restrictions of their units (if any) for the purpose of joint sale; and
  • appointing consultants on behalf of the owners and coordinating and monitoring the services provided by the consultants.
  
  
• Question 2:

  Why should the owners choose “Facilitator” approach for redevelopment of CBS buildings?

  Some of the challenges of redevelopment of CBS building are the difficulty in assembling interests and long acquisition period. The “Facilitator” approach provides an alternative way to the owners of CBS buildings to assemble titles for commencing owner-initiated redevelopment by public joint sale. The acquisition time of developer will be effectively reduced through joint sale, hence increasing the incentive of developers to invest in redevelopment of CBS buildings.

  On the other hand, URFS will on behalf of the owners appoint an independent valuer to assess their properties and to advise a fair and reasonable sale price.

• Question 3:

  If the unit is subject to alienation restriction, how does the owner participate in the joint sale?

  The owners should have obtained short term waivers / approvals of the alienation restriction on their units permitting them to enter into sale and purchase agreements or such other agreements before payment of the requisite land premium. URFS will provide assistance to owners to remove alienation restrictions of their units for the purpose of joint sale.

  Owners with restrictions shall pay the requisite land premium to the Government to remove the alienation restrictions upon successful joint sale. The detailed arrangement of the same may be provided in the Joint Sale Agreement.