Mutual Help Association

Background Information

Background Information To Property At No. 85 Club Street Owned by Sze-To Clan Mutual Help Association

The foresight, planning, generosity, wisdom and hard work of our senior members and forefathers led to the purchase of 85 Club Street and later 76-C Horne Road. This occurred in 1946 when the members agreed to purchase, for rental income and use as headquarters. 85 Club Street with members providing the interest free loan. However, upon completion of the purchase and repayment of the load using the rental income, the recovery of part of the premises for use as headquarters was prevented by the Rent Control Act established by the government. The members then turned to purchase 76-C Horne Road for rental income and use as headquarters. Both premises have since then provided rental income to increase the assets of the clan and association.

At no time in any individual assured of personal income and any property run the risk of not being rented out. Considering the difficult financial position of the clan members and the difficulty and uncertainty of those time soon after the war, their efforts were made with great sacrifice, conviction and faith that their action and decision were correct and were in the best interest of the association and clan members – the purpose was to increase the assets and benefits for members.

It has to be recorded and made know that some unreasonable members had suspicion and accusations that the responsible members were corrupt. This led to arguments, hot words and physical assault. Happily, the honesty and integrity of the embers were beyond doubt.

The Association now is presented with the opportunity to recover 85 Club Street with the Government lifting of the Rent Control Act. Elder Toon Kiew with much effort and personal contact organized meetings whereby office bearers and members studied the options, legal matters, finance and feasibility of selling or conserving 85 Club Street followed by purchase of alternative premises with the money or (b) conserving 85 Club Street were studied and discussed with the committee and members to the building professions and Mr Simon Lim, a well know property valuer.

Conserving 85 Club Street is deemed worthwhile for the following reasons:

  • Sentimental and historical value.
  • Good location
  • Ample car parks nearby
  • Greater possibility of appreciation of the value of the property.
  • Rental income of about $10,000.00 per month of rentable area of 5,00 sq ft (based on a conservative rental value of $2.00 psf only)
  • Change of use to that of a restaurant is planned with greater profit, if approved ($620,000.00 value increase in connection with car park provision).

The estimated cos of conservation including legal fees, compensation sewerage, PUB utilities, etc. is about $500,000.00


Based on a rate of 8.0% per annum, the interests payable (or contributed) are as follow:

CAPITAL                           INTEREST PER YEAR                   INTEREST PER MONTH

$50,000.00                      $4,000.00                                      $340.00

$25,000.00                      $2,000.00                                      $170.00

$  5,000.00                      $    400.00                                      $  34.00

$  1,000.00                      $      80.00                                      $    7.00

All loans will be reimbursed from the rental income. Those with the loan reimbursed early will find the commitment not too heavy.

The loan pledged currently is $290,000.00. this is inadequate for the success of the project.

When further plans have been completed, an Extraordinary General Meeting will be convened for discussion and vote on this project:

  1. To sell the property and purchase alternate property, or
  2. To conserve

minutes of previous meetings and other information are enclosed herewith for your consideration.

Please consider amount of loan you are willing to provide to ensure success. If successful the Association can achieve the rental income of at least $19,000.00 monthly (conservatively), and members will be provided with greater benefits such as financial assistance and scholarships for their children.

For the purpose of conservation of 85 Club Street, a sum of $599,000.00 is required. A request is made for interest-free loan from all concerned member. At present the loan amount pledge is $290,000.00 please pledge towards the target sum to enable the completion of the project and success for the purpose of retaining the property which had been conferred to us by our senior members and ancestors. Loans of whatever sum are welcomed and considered of equal significance in terms of sacrifices and contribution made by concerned members.

$00,000 Loan: Interest-Free

For the purpose of conservation of 85 Club Street a sum of $500,00/- is require. A request is made for interest-free loan from all concerned members.. At present the loan amount pledged Is $290,000. Please pledge towards the target sum to enable the completion of the project and success for the purpose of the property conferred by our senior members and ancestors. Loans of whatever sum are welcomed are considered as equal significance in terms of sacrifices and contribution made by concerned members

Background information

  1. The government announced the repeal of the Rent Control Act, designated parts of Chinatown as conservation areas, and published guidelines to put these info effect. On numerous occasions the committee and members held meetings to deliberate ont his and the best source of action to adapt. The property valuer, Mr Lim, very kindly responded to Mr Sitoh Yih Liang’s invitation and came to give us his opinion and advise. He noted that Club Street is very well sited in the midst of the central business district. Profitability Is increased if the ground floor’s use is approved for change as for use as restaurant or coffee shop, because of greater rental value than that of office space and waiver of requirement of car park provision because of it being a conservative building. Total floor are of three lfoors is about 5000 sq ft. Monthly rental at $2/- per sq ft amount to $10,00. This is a conservative estimate.
  2. Our member, Tee Liang, is the intended appointed architect. His estimate of the total cost including compensation is $500,000/-.
  3. Previous discussion with the bank regarding funding by mortgaging the property showed that a gurantor(s) is required. It is difficult for any member (s) to shoulder the responsibility. Consensus is that itrerest free loands from members provide the solution to funding. In about 5 years all loans will be repaid from the rental income. In this way we are eanabled to ensure the continued success for the purpose of the property and assets left by our ancestor and senior members.
  4. After the loans are repaid, the rental income monthly ($10,000) will greatly increase the financial reserve of the Association. This may be used for financial assistance for Primary and Secondary education, loans and territory and technical education, financial assistance to the impoverished and for shorties.
  5. Names of those providing loans shall be appropriately inscribed at 85 Club Street. Regardless of amount, all loans are equal significance in terms of sacrifice and contribution made by the concerned members.

Notes: –

  1. by providing loan interest-free, members enable the status of non profit organization to be maintained and enable the Association to continue to enjoy current waiver of income tax granted in response to repeated appeals submitted by Mr Sitoh Kok Koi.
  2. Current value of office space is $350 – 550 per sq ft (1.75 0 2.75m)

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