If the tendering party consists of a consortium of companies, how shall the Bank/Insurance Guarantee be prepared? Can the Bank/Insurance Guarantee be submitted under one name instead of all the names of the companies forming the consortium?

The tenderer can submit one or more Bank/Insurance Guarantee(s) issued in favour of the Urban Redevelopment Authority. However, the names of all the companies forming the consortium must be specified in the Bank/Insurance Guarantee(s) and must be exactly the same as those given in the Form of Tender.

Can a public listed company put in a tender which is subject to its shareholders approval if the tender is accepted; i.e. in compliance with Chapter 10 of the Listing Manual requiring shareholders approval at an EGM if the company is to make a major acquisition?

Tenderers are required to submit firm and unconditional offers for the site. Tenders which are subject to confirmation by the tenderers shall be deemed as conditional tenders which are not acceptable. The following should also be noted :-

A tender submitted cannot be withdrawn by the tenderer after the date and time for submission of tenders.

If a tender is withdrawn after the date and time for submission of tenders, the tender deposit will be forfeited.

Can the company undertaking a development on a URA or HDB sale site which is part of the Government land sales programme, tender for the above site?

Yes

Can a company or a person who is debarred by the Standing Committee On Debarment (SCOD), Ministry of Finance, participate in URA tenders and auctions during the debarment?

Where a company or a person is debarred by SCOD from participating in 'all lines of business', the company or the person cannot participate in all public tenders including URA tenders and auctions during the debarment period.

Can a company whose director(s) is debarred by SCOD, participate in URA tenders and auctions?

The company can participate in URA tenders and auctions only if :-

the company was incorporated before (and not after) the effective date of debarment of the director(s);

the debarment was not for corruption/rigging; and

the company is not debarred.

Is there a minimum price for the tender of the Land Parcel?

Yes, the land parcel will not be sold if the highest bid is too much below its estimated market value. The estimated market value is done on the day the tender closes.

Where can we obtain the land price of the surrounding land parcels or other sites?

Such information for all URA sale sites is available in our sales website at http://www.ura.gov.sg/sales/sales_main.html

We would like to seek the following clarifications:

Scenario A:
Is a Trust permitted to submit a tender for the Land Parcel and will this be subject to conditions? If the tender is successful, can another Trust be appointed as the Approved Developer for the Land Parcel and will this be subject to conditions?

Scenario B:
If the successful tenderer is a holding company, can it appoint a Trust as the Approved Developer for the Land Parcel and will this be subject to conditions?

For Scenario A, a tender for the land parcel may be submitted by the trustees of the trust on behalf of the trust.  The Authority will only be able to indicate the exact conditions that may be imposed when full details relating to the trust are given after the award of the tender.  Generally, the Authority will require the beneficiaries of the trust (the successful tenderer) as at the tender submission date to hold a controlling interest of more than 50% share in the land and the proposed development until TOP is issued for the whole of the proposed development on the land.

If the tender in Scenario A is successful, any proposal by the successful tenderer (trust) to appoint another trust as the Approved Developer will be subject to the prior written approval of the Authority.  The Authority will be able to consider such proposal only when full details relating to the successful tenderer and the proposed approved developer are given after the award of the tender for the land.  Generally, the Authority will consider such proposal with regard to the requirement that the beneficiaries of the successful tenderer (trust) as at the tender submission date shall hold a controlling interest as mentioned above in the land and the proposed development until TOP is issued for the whole of the proposed development on the land.

Similarly for Scenario B, any proposal by the successful tenderer (Holding Company) to appoint a trust as the Approved Developer will be subject to the prior written approval of the Authority.  The Authority will be able to consider such proposal only when full details relating to the successful tenderer and the proposed approved developer are given after the award of the tender for the land.  Generally, the Authority will consider such proposal with regard to the requirement that the shareholders of the successful tenderer as at the tender submission date shall hold a controlling interest as mentioned abovein the land and the proposed development until TOP is issued for the whole of the proposed development on the land.

We would like to know whether it would be possible to have 2 Trust to bid for the Land Parcel and whether there is a need to inform URA of the stakes that each trust will hold in the Land Parcel at the point of tender submission.

Yes, a tender for the Land Parcel may be submitted jointly by the trustees of two or more trusts on behalf of their respective trust.

There is no need to indicate the stake that each trust will hold in the land at the point of submission of tender.  However, if the tender is successful, URA will require full details relating to the trusts and where necessary, the proportions of their respective interests in the land to be given, and may impose such conditions as it deems fit on the trusts as successful tenderers of the land.

The exact conditions that may be imposed can be determined only after the award of tender and after full details relating to the trusts have been given.  Generally, URA will require the beneficiaries of the two or more trusts (the successful tenderers) as at the tender submission date to jointly hold and retain a controlling interest of more than 50% share in the land and the proposed development thereon until TOP is issued for the whole of the proposed development on the land.

If the successful tenderer appoints an approved developer to sign the Building Agreement, will the approved developer be required to pay ad valorem duty (full stamp duty) again on the Building Agreement ? What is the implication of the Stamp Duty (Conveyance Direction) (Remission) Rules 2005 ?

The successful tenderer has to pay ad valorem duty (stamp duty calculated based on the full land price) on the tender acceptance letter. In the case where the successful tenderer appoints an approved developer to sign the Building Agreement, the approved developer will be required to pay another set of ad valorem duty on the Building Agreement unless the approved developer can get a remission under the Stamp Duty (Conveyance Direction) (Remission) Rules 2005. Please check with Inland Revenue Authority of Singapore and/or your solicitors on the requirements of Stamp Duty (Conveyance Direction) (Remission) Rules 2005.