Notice of Redemption

•December 9, 2011 • Leave a Comment
Ladies & Gentlemen,
 1)          I’d just received, on 8th Dec 2011, the Notice of Redemption from Pengurusan Danaharta Nasional Berhad via their solicitor Messrs. Abu Talib Shahrom. Essentially, the notice requires us to indicate our  acceptance or otherwise of the offer to us to redeem our land at 10% of Balance Purchase Price (herein called “Redemption Sum”). The last paragraph of the Notice said:

            “Kindly indicate the acceptance of the above proposal by the respective beneficial owners of the unredeemed units, in writing to our client within thirty (30) days from the date of this letter failing which, this offer shall be lapse and of no further effect.”

The solicitor had agreed to rely on a written reply from VICTIMS (Brogaville) Committee (“VBC”) to accept the above mentioned proposal on behalf of all the contacted purchasers. In order to speed things up, I am going to use this method:

“For those who object to the above proposal, please let the VBC know by a return email to brogaville@gmail.com by 22ndDecember 2011; otherwise the       VBC will take it as you have agreed and authorizes our committee to respond positively to Messrs Abu Talib Shahrom.”

Notice of Redemption from Abu Talib Shahrom (please click to open)

2)          Through my discussion with the legal counsel Cik Nurhaniza Ab Halim, the following are the steps for redemption. Kindly study the Redemption Steps and get ready. With regard to this, I would like to               highlight the following reminders:
 

Redemption Steps (please click to open)

List of Individual Titles and Redemption Sum (please click to open)

a)          Arrange to have your money ready for the Redemption Sumplease refer to attachment for the amount of redemption sum

             b)          Get your documents ready especially the Sales & Purchase Agreement (“SPA”), official receipts/progress payments letters etc. to ensure that the redemption sum is accurate
             c)          Check that your name (s), land size, new title numbers etc are correct
             d)          Payment of Cukai Tanah (Quit Rent)/Cukai Pintu (Assessment) ought to be upon/after receipt of the Letter of Offerplease refer to attachment for new title numbers
             e)          For those who still has outstanding loans, please settle/arrange with your banker – please refer to comment in Step #6 in Redemption Steps
 
3.          Projected date of issuance of Letter of Offer

              We don’t have an indicative date for the issuance of the Letter of Offer, but judging from the above time-line, our guess is sometime in January 2012

Most important notice of all

The VBC members are all unpaid volunteers and are not professionals in such kind of work i.e. legal and conveyancing; therefore each and every purchasers must take extra care to ensure that their own individual interest is taken care of and NOT rely solely on the VBC. The VBC was formed amongst the purchasers with the sole purpose of communicating with the relevant parties as a group rather than individually.

On this token, the individual purchasers must not only ensure that their name (s), land particulars etc. are correctly indicated on their land title but to also conscientiously follow up on the status of resolution of Brogaville Horticultural Village project by Pengurusan Danaharta Nasional Berhad/Prokhas Sdn. Bhd.

We at the committee will be there to assist.

Thank you.

Warmest regards,

On behalf of VICTIMS (Brogaville) Committee

 Bernard Ho, Chairman

cc.         Mr. Tham See Ho           0162108439

             Mr. Kenny Liew              0193834884
             Mr. Kenny Lim                0122103810
             Dato Liew Hoong            0122883613
             Ms. Leong May Heong   0126555248
             Mr. V. Raju                     0123101958
             Mr. N. Vijayan                0193101685
             Mr. Kang Chong Yeow    0122286630
             Dato Osman M. Yusof    0178773869
             Mr. Joyrama                   0122000507
             Mr. Logen Singam          0163329970

Results of First Meeting on 10 Sept 2011

•September 13, 2011 • Leave a Comment

We had a reasonably good meeting and the highlights of that meeting are:

1.0) Presentation by Bernard Ho, Protem Chairman – highlights of his presentation:

BHOVAG presentation for 10 Sept meeting (Please click to open)

 1.1 The survey form is merely to ascertain the number of people who wishes to eventually sell his/her land and those who wishes to keep it. Everyone can still change his/her mind later. Obviously, all of us wants a good price before we sell it.

1.2 Contributions of min. RM50 each and those who can contribute more should be generous – to help pay for meetings, correspondences, search fees, negotiation expenses as well as moblisation expenses

1.3 Formation of new committee viz., VICTIMS (BROGAVILLE) which will now come under the wings of Persatuan Pemilik Bangunan Terbengkalai Malaysia and which is a duly registered body. The members are:

1. Mr. Bernard Ho, Chairman
2. En. Osman Yusof
3. Mr. Liew Hoong
4. Mr. Tham See Ho
5. Mr. Kenny Liew Yew Juong
6. Mr. Kenny Lim Kok Kin
7. Mr. Kang Chong Yeow
8. Mr. Joyrama a/l Appusamy
9. Mr. Raju a/l Veerasamy
10. Ms. Leong May Heong
11. Mr. Vijayan A/L P.R. Nagalingam
12. Mr. Logenthiran a/l C. Paranirubasingam

1.4 The issue of getting back our land is practically over and we will just have to wait for the official Letter of Demand from Prokhas sometime in Oct 2011.

1.5 That all purchasers should settle their loan account or negotiate with their bankers because the land titles will be forwarded to their banker. As for cash purchasers, their land titles will be forwarded to them directly. In any case, we should wait for the letter of demand and see the conditions of redemption.

1.6 The next committee (VICTIMS BROGAVILLE) will have a lot of work to do as besides continuing with the role as the conduit between the purchasers and Prokhas, it will be mostly focusing on negotiating with I&P Group to get the best deal for all of us.  

2.0) Speech by Dr Mohamed Rafick Khan, President of Persatuan Pemilik Bangunan Terbengkalai Malaysia (VICTIMS) – highlights of his speech

2.1 Introduction of the Association,
2.2 Brogaville is the easiest of all the abandoned projects that he has been involved in,
2.3 All victims of Brogaville ought to support the committee so as to derive the most benefits be it selling the lots to I&P Group or keeping the land. All it takes is one spoil sport (uncooperative victims) and the effort of the committee, in getting a good resolution for all victims, will be ruin.
2.4 It is a two (2) step solutions to our problem. Firstlly it is to get back the land viz., individual land titles and secondly to negotiate with I&P Group whether it is to sell the individual lots or to work with I&P Group for those who wishes to keep them,
2.5 He has good rapport with Prokhas as well as I&P Group and he will be working with the committee on the 2nd step i.e. to talk to I&P Group.

3.0 Others

3.1 Attendence – only 47 out of 85 contacted purchasers turned up

3.2 Keep/Sell Decision – 27 Sell 20 Keep (mostly with remarks that – will sell at good price)

4.0 Appeal from VICTIMS (BROGAVILLE)

4.1 Contributions – those who have not contributed can still do so. Please let me know if anyone of you wishes to contribute.

4.2 Survey Form – Those who miss the meeting can fill up the Survey Form and then either email a scanned copy to brogaville@gmail.com or fax over to 03-62531239 (attention to Bernard Ho)

Survey form (please click to open and print)

Bernard Ho, Chairman
VICTIMS (BROGAVILLE) COMMITTEE
 
 

Draft Letter of Proposal/Appeal To Prokhas

•August 8, 2011 • Leave a Comment

Letter Of Appeal to Prokhas Sdn Bhd (please click to open)

Please study the content of letter and let us have your comments/suggestions. This letter will be sent over to Prokhas as our “one voice” letter by 9 August 2011. Sorry for the tight timeline.
Email your comments/suggestions to:
brogaville@gmail.com

Redemption Sum Offer From Prokhas

•August 5, 2011 • Leave a Comment
Prokhas Sdn. Bhd. has agreed in principle to only ask for 20% of the balance purchase price as Redemption Sum. The illustration is as below:
Illustration:
             Purchaser price                                         RM200,000
             Size of lot                                                   10,000 sq. feet
             Original Cost per sq feet                   RM20 (with infrastructure)
             Paid to developer to date                         RM120,000 (60%)
             Balance purchaser price                           RM80,000
             Redemption Sum                                       RM16,000 (20% of balance purchase price)
             Total Cost                                                  RM136,000
             Final Cost per sq feet                               RM13.60 (without infrastructure)
 
Apparently, Prokhas will be sending out their Letter of Demand shortly whereby purchasers will be given about 90 days to accept the redemption sum. Anyone who fails to accept the redemption sum offer will render their lot (s) being FORECLOSED.  When foreclosure proceedings commence, the affected purchaser will lose everything; meaning all proceeds from the disposal of a foreclosed land will belong to Prokhas, who is the master chargee, and nothing for the purchaser!!
 
On the part of our committee, we will be writing to Prokhas to appeal for better terms such as:
 
a) Redemption sum to be set at 10% instead of 20%
b) To waive the stamp duty for the memorandum of transfer
c) To allow the purchasers who has accepted the redemption sum offer to pay, say, 30 days after the expiry of the 90 days demand period. This is to allow the purchasers more time to negotiate with I&P Group Sdn. Bhd.  
 
Ladies & Gentlemen, while the Letter of Demand may seems to be harsh especially regarding the foreclosure clause, it does offers us a golden opportunity for us to resolve our 16 year old problem. In the nutshell, we will be getting our individual land title!! Therefore, please ensure the following:
 
1) That your contact address is correct because Prokhas will need to send you, individually, the said Letter of Demand,
2) That you have the redemption money ready,
3) That you can be contacted and respond promptly to attempts to contact you.
4) That you will be ready to prove ownership to your lot e.g. S&P etc. 
 
We will be responding to Prokhas using the above points by Monday 8th August 2011, next week. Please let us have your comments, suggestions and thoughts while we start penning our response to Prokhas.
 
Anyway, we are at a very critical stage now and if any of us were to miss out this Letter of Demand, you will have to face foreclosure on your “land” and thereafter lose everything!
 
From: BHVOAC
brogaville@gmail.com

Response From Prokhas

•July 27, 2011 • Leave a Comment
Ladies & Gentlemen,
 
Attached is the initial response to our questions from En. Mohd Fadzil of Prokhas Sdn. Bhd. (in Red). We would appreciate comments/suggestions/ideas from all purchasers, by 1 August 2011, so that the committee can then respond to/clarify with Prokhas. It would be splendid if we can obtain answers from Prokhas to our questions so that this coming September 10th meeting will be more fruitful:
 
1.        Memorandum of Transfer
 
Please clarify whether the liquidator is the liquidator for the Developer Rumpun Jadi Sdn Bhd only or for the owner Tekun Kurnia also?? This is because the Memorandum of Transfer is to be executed by the owner Tekun Kurnia.  If the liquidator says he can sign – is he signing on behalf of Tekun Kurnia and does Rumpun Jadi Sdn Bhd has a Power of Attorney from Tekun Kurnia?
 
Liquidator for Rumpun Jadi.  I will elaborate further on this issue later, upon confirmation from KPMG.
 
2.        Infrastructure
 
 
After payment of the balance purchase price, does it mean that the purchasers would be able to have the infrastructure for the project? Is this the only payment or is there any other “hidden” cost?  According to the SPA, the payment of the balance purchase price include infrastructure as well.
 
Please be clear that the SPA was between purchaser and Developer (now under liquidation). Prokhas act on behalf of Danaharta who acquired the loan from previously MBF Finance. Basically Danaharta is the new lender, hence our role is to collect back the loan.
 
3.        Role of Prokhas, KPMG and Jayaratnam & Partners
 
           What are the roles of Prokhas Sdn. Bhd., KPMG as well as Jayaratnam &       Partners?
 
As explained earlier, Prokhas manages the loan on behalf of Danaharta, the new lender who acquired the loan from MBF Finance. All the securities charged is now charged to Danaharta as per vesting certificate issued upon acquisition of the loan.
 
KPMG is the appointed liquidator for Rumpun Jadi Sdn Bhd.
  
4.        Redemption Sum/Payment of Balance Purchase Price
 
           Will Prokhas follow the progressive payment schedule in the Sale and Purchase  Agreement ? According to the Schedule of payment the balance purchase price is payable only upon infrastructure being done and Prokhas requesting for the upfront payment now must be made on the agreement that all monies paid    would be put into a Trust Fund and to be disbursed to Prokhas as and when the       infrastructure stated in the Schedule on progressive payment has been fulfilled.
 
After the payment of the balance purchase price, is there any assurance that the owner or liquidator (if the owner is under liquidation) would execute the Memorandum of Transfer and the owner/liquidator would not charge for such service since the purchasers have already suffered so much financially in this project?
 
           Can Prokhas provide an example of how the Redemption Sum is computed?
          
           As explained, The S&P is between purchasers abd Developer, while Danaharta (Prokhas) is the lender. Our concern is to discharge all the existing sold but unredeemed units via redemption sum, or if later any respective purchaser failed to redeemed, we have the right to dispose the unit (our last resort of course). 
 
The payment of the balance of purchase Price is a ‘Redemption Sum’, i.e. for purchasers to redeem the Title from Danaharta, the lender to the Developer. Thus far, based on our last approval, the Redemption Sum shall not exceeded the Original Purchase Price.
 
5.        Revival/Development of Brogaville Project
 
           Is the new developer e.g. I&P willing to continue with the original Brogaville Horticultural Village plan? If not what is their new plan?
 
The new Developer (I&P) bought only the unsold portion of the project. So whether they are to continue with the original plan is beyond our control. Nevertheless they had previously mentioned their intention to complete the project including the infrastructure works, to add value to the unsold portion of the project which they bought.
 
 Please bear in mind though that they have to get approval from Authority for any change of plan.
 
Also, they have to complete the infrastructure if they want to sell the unsold portion of the project. Otherwise it will be quite difficult for them to sell.
  
6.        Purchase of bungalow lots by I&P or the next developer
 
           If the purchasers were to sell their lots to the developer, would the developer buy?    If so what would be the price?
 
Again, this is up to the developer. Thus far we have yet to receive any concrete plan from them. I believe our Property Dept who will be taking over the files will liaise with I&P about this. Perhaps after Raya you should arrange meeting with I&P.
 
 

First Meeting Amongst All Contacted Purchasers

•July 27, 2011 • Leave a Comment
Dear Fellow Purchasers,
 
RE: BROGAVILLE HORTICULTURAL VILLAGE

 We have managed to contact 71 purchasers, and counting, which represents about 60% of the total. With a majority of purchasers in hand now, the committee would like to call for a meeting amongst all contacted purchasers to discuss and find solutions to our 13 year old problem. This is going to be a very important meeting and we therefore urge all purchasers (or their representative) to attend so that we can pursue the resolution of BROGAVILLE HORTICULTURAL VILLAGE project together in ONE VOICE. The details are as follows:

1)          DATE & TIME

             10TH September 2011 at 2.00pm 

2)          VENUE

              BEST AUCTIONS SDN. BHD.
              Lot PT5692A, Jalan Usahawan 5,
              Kawasan Perindustrian Ringan Setapak,
              53200 Kuala Lumpur Malaysia

             www.auctioncity.com.my

              Note: This is an auction hall and can easily accommodate 200 people. However parking is a little
              limited but you can park in the vicinity areas and take a short walk to the auction hall.
 
             Map To Best Auctions Sdn. Bhd. (please click to open)
 
  3)         AGENDA
 
             a.          To confirm and update the Record of Purchasers with the latest particulars such
                          as contact addresses, telephone numbers, next-of-kin etc.
                          - after 13 years, most of us are not young anymore and it would be better if we can put into
                            the  record of purchasers names of our next-of-kin together with their contact addresses
                            and contact details.
 
             b.           Briefing on the status of the project
                           - we will invite officials from Prokhas or alternatively our BHVOAC members can
                              also perform the briefing
                           – we will also be inviting a legal firm to talk to us regarding the legal status of the
                              project, legal relationship between Prokhas and the Purchasers as well as taking on
                             questions from the floor
            
             c.           Formalization of the Brogaville Horticultural Village Owners’ Action Committee (“BHVOAC”)
                           -  appointment of committee members
                           –  establishment of the scope of work
                           – determination and collection of funding requirements e.g. for legal services, for
                              organizational expenses etc.
            
             d.          Discussion and the formulation of action plans
                           - what are our options?
                           – continue development as originally planned?
                           – redeem our individual land and walk away?
                           – work together with developer(s) to redevelop the land?
                           – others?
 
             e.          Other matters
 
4)          ASSISTANCE TO LOCATE OTHER PURCHASERS AS WELL AS TO PERSUADE
              PURCHASERS TO ATTEND
 
             We would like to urge all of you to help us to persuade your friends who had purchased bungalow
             lots to attend this VERY IMPORTANT meeting as well as to locate other purchasers whom we, until
             now,  have not been able to contact. We need all the support we can in order to resolve this problem
             once and for all.
 
             Finally, we would like all of you to confirm your (or your representative) attendance by email so
             that we can make the proper arrangement. There are also quite a lot of those who doesn’t have
            email addresses and we will have to call/sms them one by one. Therefore, you will do us a lot of
            favour if you can just confirm by email (or sms to Bernard Ho).

 Thank you and see you then.

 Best Regards,
Bernard Ho
016-3370428
brogaville@gmail.com
 
On behalf of Brogaville Horticultural Village Owners’ Action Committee (pro-tem)
 

Official Letter To Prokhas With Questions From Purchasers

•June 2, 2011 • 1 Comment

Letter to Prokhas With Questions From Purchasers

Prokhas wants our questions on an official letter. As such, I have drafted the official Letter with all our questions. I will be presenting this letter to En Mohd Fadzil on Monday 6 June as well as collecting the list of purchasers from him. Should any of you have any comments on the content of the Official Lette, please let me know and send your comments to brogaville@gmail.com.

 
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