Dear Members, Location, Location, Location! I covered both our Investment and our Tender policies in the two previous Captains Corner. In this episode, we look at the third leg of how we protect our Club’s assets and some circumstances that could have a bearing on the future of our land holdings.
The RSGC holds a valuable land portfolio comprising 22 parcels totaling approximately 356 acres. Of these, 21 parcels are freehold, amounting to about 342 acres, and one is a circa 14 acre government leasehold expiring in 2037. Two parcels, covering 327 acres and comprising the Club’s golf courses, are not available for leasing to third party tenants. The remaining 20 freehold parcels, totaling just under 29 acres, may be leased out under clearly defined governance protocols.
The Landed Property Policy imposes strong safeguards against malfeasance and conflicts of interest. Any proposal involving the sale, lease exceeding three years, disposal, or encumbrance of Club land must be reviewed by the relevant Sub-Committee, approved by the Committee, and endorsed by members at a General Meeting. All such transactions must follow an open tender process overseen by a tender board, and be supported by an independent valuation to ensure transparency and market conformity.
Lease agreements must include scheduled rent escalations. Subleasing, assignment, or transfers of occupation rights are not allowed without proper approval. Occupiers are responsible for all statutory payments and regulatory compliance. Legal action will be initiated in the event of payment default unless formally deferred. Any proposed development or rezoning must be approved by members by way of special resolution.
However, recent regulatory requirements for Companies Limited by Guarantee (CLBG) may now affect The RSGC’s autonomy in managing this land. Under the current guidelines, a CLBG will require official permissions to carry out almost all material actions relating to our land holdings. Such approval may also be subject to conditions imposed by the authorities.
The RSGC has been working closely with its legal advisors to assess the implications of these requirements and to review previous Committee and Members’ decisions and actions concerning its land portfolio. Once material legal clarity is obtained, including on how the term “lease” is to be interpreted under the CLBG guidelines, we will have better visibility on the issue as a whole and also on currently empty pieces including the previous Singapore High Commissioner’s residence. The Club anticipates that these CLBG requirements will need to be formally incorporated into the Landed Property Policy.
Regardless, amendments to the policy for this and other changes require the approval of both the Committee and members at a General Meeting. These governance structures should ensure the long-term integrity and prudent management of The RSGC’s most strategic asset, its land.
Raymond Yeoh
Captain
