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Thread: SC Global saves millions with QC cancellations

  1. #1
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    Default SC Global saves millions with QC cancellations

    http://www.businesstimes.com.sg/arch...tions-20130701

    Published July 01, 2013

    SC Global saves millions with QC cancellations

    Step was taken after the group successfully privatised

    By Felda Chay


    [SINGAPORE] SC Global has managed to cancel the qualifying certificates (QCs) that were issued to its developments after it delisted from the stock market earlier this year, saving millions of dollars it would otherwise have to pay for failing to meet the sales deadline under the government's QC rules.

    The luxury property firm is the first to delist and obtain QC cancellations since tough additional buyers' stamp duties (ABSD) were introduced for land bought from late 2011 onwards. The duties upset listed property developers because they face a double whammy from hefty ABSD and QC charges if they fail to sell all units at their developments within the time stipulated by both rules.

    While SC Global would not have been hit with the ABSD for the projects it got the QC cancellations for, its case is significant because many developers and market watchers had believed that the rule was not retroactive, and would still apply to its existing projects. It was therefore seen as a test case.

    Yet BT understands that SC Global is not the first listed property developer here to delist and subsequently obtain QC cancellations. In 2010, Soilbuild Group became the first such company when it applied for and obtained QC cancellations when it delisted.

    Prior to its delisting, the residential and industrial property developer reported record net profits for FY 2009. In August 2010, Soilbuild declared its maiden dividend, and reported net profit growth in the first half of FY2010. The group has since relisted earlier this year.

    SC Global successfully obtained the QC cancellations on March 1 this year, although news of the cancellations has not been made public.

    BT understands that the cancellations include the QC issued for the 66-unit The Marq on Paterson Hill. Its sales deadline came up in January this year and would have cost SC Global $5.5 million for a six-month extension.

    SC Global's chairman and CEO Simon Cheong launched his $745 million privatisation bid for the firm in December last year. SC Global officially delisted on March 11.

    The group has seen slow sales for its projects as a result of the government's property cooling measures. For the first nine months of FY2012, net profit fell 98 per cent to $2.9 million from $150.9 million over the same period a year ago.

    It stood to lose as much as $71.7 million in 2013 if it failed to obtain a waiver, deadline extension or a cancellation of the QCs for three of its projects - Hilltops, Martin No 38 and The Marq, according to a Maybank Kim Eng report in December last year.

    The Singapore Land Authority (SLA), in response to BT's queries on the QC cancellations for SC Global, said: "As SC Global's wholly-owned subsidiary companies that had acquired residential development sites satisfied the conditions of being Singapore companies, the subsidiary companies had applied for, and were issued with, clearance certificates on 1 March 2013. The QCs issued for those developments have been cancelled and the QC conditions are no longer applicable.

    "The cancellation of the QC in such a situation is consistent with past cases where a developer was subsequently issued with a clearance certificate. SC Global is not the first listed housing developer to delist and apply for a clearance certificate. Another housing developer had delisted in 2010 and obtained a clearance certificate after it satisfied the conditions of being a Singapore company."

    When contacted, SC Global declined to comment, although a source close to the firm said that the cancellations came as a "pleasant surprise".

    Stock analysts whom BT spoke to said that the QC cancellations obtained by SC Global would be relevant to listed high-end developers, many of whom are seeing sales languish as a result of the ABSD, which has hit the luxury market the hardest.

    Said OCBC Research analyst Eli Lee: "I believe SC Global's waivers would be interesting for developers facing QC-related penalties in future. This may be especially so for those with mostly unsold high-end projects nearing/with TOP status."

    Still, he does not believe that the case will lead to many delistings.

    "Relative to peers during its delisting, SC Global faced the heaviest potential impact from QC penalties. At this juncture, I believe other developers potentially affected, such as Wing Tai, are still looking at a long enough runway for sales."

    Echoing this view, Wilson Liew, an analyst at Maybank Kim Eng, said: "I think there is a possibility (that some developers will follow in its footsteps and delist), but there is no pressing need to do so, at least not for the next one to two years."

  2. #2
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    Loophole?

    Anyone wants to call up MND to complain?

    Especially, the following. Soilbuild group, delist, cancel the QC and the relisted?? what sort of bull shit is this? If you want to come up with a policy, how can you have loopholes for companies to exploit? Frankly I think the MND is getting worse and worse. So many policies but all of them useless... They should look at enforcement.

    Yet BT understands that SC Global is not the first listed property developer here to delist and subsequently obtain QC cancellations. In 2010, Soilbuild Group became the first such company when it applied for and obtained QC cancellations when it delisted.

    Prior to its delisting, the residential and industrial property developer reported record net profits for FY 2009. In August 2010, Soilbuild declared its maiden dividend, and reported net profit growth in the first half of FY2010. The group has since relisted earlier this year.

  3. #3
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    This was already discussed sometime back

    http://forums.condosingapore.com/sho...=Global+delist
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

  4. #4
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    Same issue as huge air con ledge. Cooling measures mostly target buyers.

  5. #5
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    I think should apply this rule with all property developers. Listed or privately owned. Imagine FEO hoard 100,000 units, what can you do?



    Quote Originally Posted by wind30
    Loophole?

    Anyone wants to call up MND to complain?

    Especially, the following. Soilbuild group, delist, cancel the QC and the relisted?? what sort of bull shit is this? If you want to come up with a policy, how can you have loopholes for companies to exploit? Frankly I think the MND is getting worse and worse. So many policies but all of them useless... They should look at enforcement.

    Yet BT understands that SC Global is not the first listed property developer here to delist and subsequently obtain QC cancellations. In 2010, Soilbuild Group became the first such company when it applied for and obtained QC cancellations when it delisted.

    Prior to its delisting, the residential and industrial property developer reported record net profits for FY 2009. In August 2010, Soilbuild declared its maiden dividend, and reported net profit growth in the first half of FY2010. The group has since relisted earlier this year.

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    Quote Originally Posted by thomastansb
    I think should apply this rule with all property developers. Listed or privately owned. Imagine FEO hoard 100,000 units, what can you do?
    +1

    All developers should not be allowed to hold on to unsold units and rent it out while waiting for buyers.

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    Quote Originally Posted by wind30
    Loophole?

    Anyone wants to call up MND to complain?

    Especially, the following. Soilbuild group, delist, cancel the QC and the relisted?? what sort of bull shit is this? If you want to come up with a policy, how can you have loopholes for companies to exploit? Frankly I think the MND is getting worse and worse. So many policies but all of them useless... They should look at enforcement.

    Yet BT understands that SC Global is not the first listed property developer here to delist and subsequently obtain QC cancellations. In 2010, Soilbuild Group became the first such company when it applied for and obtained QC cancellations when it delisted.

    Prior to its delisting, the residential and industrial property developer reported record net profits for FY 2009. In August 2010, Soilbuild declared its maiden dividend, and reported net profit growth in the first half of FY2010. The group has since relisted earlier this year.
    You are right. A complaint must be made and will be made

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    Quote Originally Posted by mosaic
    You are right. A complaint must be made and will be made
    Will you be the official complainer, or shall we appoint yowetan to complain?

  9. #9
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    Quote Originally Posted by princess_morbucks
    Will you be the official complainer, or shall we appoint yowetan to complain?
    don t worry. I very fast one. Complain already. Developer want to sell units, very easy. Lower the price

  10. #10
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    unable to sell units is just excuse. Who ask you bid so high. If you lower by 300-500psf you think developer cannot sell?

  11. #11
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    article is not so clear.
    1) QC can be cancelled and no need to pay extension charges
    is it retroactive?
    2) ABSD no need to pay since the rule is not retroactive.

    so SC Global no need to pay extension charges and no need to pay ABSD?

  12. #12
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    at a soccer game there is a term for this Kelong
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

  13. #13
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    Didnt expect Soilbuild to be so soiled.
    click: 🏢shoeboxmickeymousehouse 🏢

  14. #14
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    i think if the developer can potentially go under because of this than fine lah, give them abit of leeway. But these guys are still making big bucks. Obviously if they can afford to buy back shares at 700mil + money s not an issue.

    Like that if i buy property and it drops towards TOP can i get rebate or get later delivery of the property.

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