Commercial and Industrial Buildings - Optional Arrangement
(for applications failing the test of financial viability only)

Applications for facilitating services which cannot pass the test of financial viability will not be selected for further processing under the normal arrangements of the Scheme. The Optional Arrangement, with details below, is offered to assist the owners of such applications to meet their genuine needs:

• Under the Optional Arrangement, an application which fails the financial viability test but has satisfied all the other application requirements and selection criteria may be allowed to proceed further, subject to absolute discretion of URFS and the owners' agreement to bear the full amount of Consultancy Expenses up to and including joint sale. The owner shall pay their respective shares of the Consultancy Expenses in two stages upon signing of the Facilitation Agreements and the Joint Sale Agreement respectively.
• Applicants are requested to confirm in the Application Form their intention to opt for the Optional Arrangement. Unless all the applicants concerned have made such confirmation, URFS will not consider the application under the Optional Arrangement.
• All the provisions shall apply under the Optional Arrangement except that:
  • Para.2 of "Fees and Expenses" shall be replaced with the following:
    
    On behalf of the owners, URFS will engage related consultants (including but not limited to solicitor, valuation and property agency consultant) to provide services to the owners in the process of reaching a joint sale. The full amount of consultancy fees and related expenses incurred in the process of reaching the joint sale ("Total Fee") shall be paid by the owners. The owners shall pay their respective shares of the Total Fee in two stages upon signing of the Facilitation Agreements and the Joint Sale Agreement respectively. Computation of the payments by individual owners shall be as follows:
    • URFS will decide on the amount of the Total Fee and the amount payable for each stage.
    • If a site consists of two or more lots, the Total Fee will firstly be shared among the lots based on the lot size.
    • The portion of the Total Fee shared by a particular lot will then be shared among the owners based on the number of undivided shares they own in the lot.
  • Para.3 of "Fees and Expenses" shall be replaced with the following:
    
    If a Facilitation Project fails after the signing of the Facilitation Agreement(s) for whatever reasons, the owners who have signed the Facilitation Agreements will recover parts of their payments that have not been expended, if any, in proportion to their payments for Consultancy Expenses.