Meeting minutes of 'OSK Property - Meet Buyers Session'
Date: 4th October 2014
Time: 3.00pm-4.30pm
Venue: Lotus Room 2, Swiss Garden Pudu, KL
Attendees:

1. OSK mid management team, including the supposedly COO and also key architect/consultant of the previous phases. (6 people in total)

2. Buyers from various phases of Pangaea (30-35 people in total)
Agenda:

1. Opening speech by OSK, stating that they value their buyers/customers and thus, the reason why they are having today's dialogue/discussion.

2. Presentation slides by OSK, showing the master plan of the entire project, with the area that was previously allocated for the 2 office and hotel blocks now replaced with 2 residential blocks (Kepler) .Also the revised 'centre stage', which will now have a high rise office & hotel (13-storey), street boutique retail mall with an indicative nett retail area of 380,000-400,000 sqft. New revised figure was provided by the key architect/consultant.

3. Presentation slides by OSK, showing that overall site progress of the project. Paragon is slightly ahead of its schedule, with handover targeted in April 2015. Solstice for Block 1 is up to the 19th floor while for Block 2, it is up to the 16th floor. As for Eclipse, foundation works is expected to be completed in November 2014.

4. Q&A session:

i. Solstice & Eclipse duplex unit buyers voiced their concern that the new high rise office & hotel (13-storey) will now block their view. OSK replied that the layout for the 'centre stage' area is not confirmed yet and will further consult their consultants on this.

ii. Buyers voiced their concern that the reason why they invested in the project is because of the unique integrated development of the project, which is mainly the office, hotel and 500,000 sqft shopping mall. OSK replied that those elements are still there but had to maneuver it due to change of market demands and also buyer requirements. OSK claimed that they have consulted and gathered feedback from consultants and also retailers regarding this. The new revised layout will add-value to the existing buyers.

iii. Buyers went into detail regarding the change to the shopping mall, which was one of the unique selling points of the project. OSK replied that making a mall successful is not easy and tried to give examples of malls which are not doing well, such as SS Two Mall and also Alamanda. OSK replied that based on current trends and market environment, the previous design of the mall is not sustainable. The mall is only able to target those within 300-500 metres (walking distance), of which there are not many residents. People who are willing to drive will go further to other malls. Thus, the need to change the concept and reduce the nett retail area from 500,000 sqft to 400,000 sqft. Buyers replied on top of that stating that this is not true, as many people nowadays have cars and are willing to drive a significant distance to go to a place if the place is happening.

iv. Buyers voiced their concern that they were cheated during the purchase of Solstice and Eclipse, as those 2 residential blocks were suppose to be the only residential units in the project. Purchasers of Eclipse were clearly told that Eclipse would be the last residential phase, followed by the development of the hotel and office block next and last but not least, the shopping mall. No reply from OSK on this matter.

v. Buyers voiced their concern that by having additional residential units to the project, this will add to the risk of renting out as there will now be more units in the project. Buyers also mentioned that their decision to purchase the residential units is based on the risk calculation of having only 2 residential phases with office and hotel to further complement the 2 residential phases. The office will provide the rental demand for residential units. OSK replied that buyers should not be afraid of the new competition from Kepler as Eclipse and Solstice will be completed earlier and Kepler at a much later date. OSK did not reply on the point that reducing the office space will reduce the rental demand for residential units.

vi. Buyers asked how much will be the launching price of the planned Kepler residences. OSK replied that it will be much higher than the previous 2 residential projects of Eclipse and Solstice but can't be revealed at this point in time as it has yet to be finalized.

vii. Buyers voiced their concern that the project is now more densed that the original master plan with additional blocks and this is because, OSK just wants to rake in more profit. No reply from OSK on this matter.

viii. Buyers request an option from OSK so that buyers who do not agree with the change can sell back their units to OSK at current market price (purchase price + appreciation value). OSK replied that they will need to consult their senior management on this and revert soonest.

ix. Buyers request to reject the 'value add' changes of changing the master plan and revert back to original master plan. No reply from OSK on this matter.

x. OSK will go through all the concerns and request from the buyers and will revert soonest. OSK can be contacted via email or phone at 603-2161 3322. Buyers that are present today will communicate through Facebook and elect a representative to follow up on the outstanding matters that were raised today via e-mail. Any reply from OSK will be shared via the Facebook group.

Meeting adjourned.

i share from the facebook group...

for the buyers please share and join this group
https://www.facebook.com/groups/291754137694836/