Commercial and Industrial Buildings - Joint Sale of Property Interests

Key Milestones
• The commenced Facilitation Project will have to be aborted if any of the following Key Milestones cannot be reached:
  • Within 9 calendar months (or 12 calendar months if the number of units in the Application Site exceeds 100) from the Project Commencement Date, the percentage of undivided shares of the owners signing the Facilitation Agreements shall reach the Joint Sale Threshold*.
  • Within 5 calendar months from the date of reaching the Key Milestone mentioned in Para. 1(a) above, the percentage of undivided shares of the owners signing a Joint Sale Agreement shall reach the Joint Sale Threshold* and the auction or tender for joint sale shall be conducted.

  * Joint Sale Threshold
  The Joint Sale Threshold for a particular lot is defined as:
  (A)	90% of the undivided shares; or
  (B)	80% of the undivided shares if:
  	(I)	each of the units on the lot represents more than 10% of all the undivided shares in the lot (for the purposes of the class of lot referred to herein, if (a) a unit in a building is subdivided into 2 or more units on or after 1 April 2010; and (b) the subdivision does not involve (i) any alteration to the size of any common area of the building; or (ii) any change in a person's liability in relation to the common areas and facilities of the building under the common law or any enactment, those units are regarded as one single unit); or
  	(II)	each of the buildings erected on the lot was issued with an occupation permit at least 50 years before the Project Commencement Date; or
  	(III)	the lot is not located within an industrial zone and each of the buildings erected on the lot (a) is an industrial building; and (b) was issued with an occupation permit at least 30 years before the Project Commencement Date.

• Subject to URFS's absolute discretion, the owners may be allowed one opportunity to put up the assembled interests for joint sale even if the Joint Sale Threshold cannot be reached.
 
Joint Sale by Auction or Tender
• Owners who have signed the Joint Sale Agreement ("Participating Owners") shall sell their property interests jointly subject to a reserve price and shall share the sale proceeds among themselves in accordance with a schedule of agreed sharing ratios. An independent valuation consultant will be appointed by URFS on behalf of the Participating Owners to assess the reserve price and sharing ratios.
• 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. The auction or tender shall be conducted within the 5-month period mentioned in Para. 1(b) above.