Monday, May 10, 2010

Lagoon View en bloc, too?

Hot on the heels of the Laguna Park proposed en bloc sale last week, its neighbour Lagoon View is now looking to privatise the entire estate which could pave the way for a possible collective sale as well.

At a special general meeting yesterday, the Lagoon View Owners’ Association, the management committee behind the plan, has obtained residents’ approval to buy back the land within the 30-year-old estate from the Ministry of Finance.

This land, which is believed to cost $16 million, includes car parks and other common areas within the 535,326 sq ft, 480-unit property.

Each resident will be required to fork out a privatisation levy of $35,500 but for the privatisation process to proceed successfully, residents will have to hit several milestones..

Firstly, at least 80 per cent of residents will have to place a downpayment of $5,500 each by May 29.

Otherwise, the privatisation process will have to be aborted.

Next, the management committee will have to sign a sale-and-purchase agreement, and at least 84 per cent of residents are required to pay the full amount of the privatisation levy within four months.

If this minimum 84 per cent is not met, the privatisation process cannot be completed and the committee will convene another meeting to decide on the next course of action.

While the majority of residents have voted for the privatisation, some residents among the 300 who attended yesterday’s meeting said that they are unwilling to participate in the exercise, while others said they remain unsettled over its high cost.

One resident who spoke out against the privatisation highlighted its high price as a hindrance but the committee assured that residents can use their Central Provident Fund savings to pay the full amount of the levy.

Another resident, who only wanted to be known as Mr Lee, said the committee should privatise only if there is an ensuing en bloc sale as this would give hesitant residents more incentive to participate.

Privatisation will ensure the entire estate belongs wholly to the residents and this can raise its value to match the valuation of Laguna Park should residents decide to sell, said the management committee.

The privatisation will also enable the committee to obtain the management corporation strata title, giving them the full authority to manage the estate, said Mr Eric Tan, honorary president of the management committee.

Despite grouses from some residents at this early stage of privatisation, the committee maintained that they will see that these concerns are addressed at every general meeting and resolved along the way.

Source: Today, 10 May 2010

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