Lagoon View is looking to privatize the entire estate, which could trigger a possible en bloc sale, after its neighbour Laguna Park proposed a collective sale last week.
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During a special general meeting held yesterday, the Lagoon View Owners’ Association, the management committee behind the plan, obtained approval of the residents to retrieve the land from the Ministry of Finance.
Believed to cost $16 million, the land includes car parks and other common areas within the 535,326-sq-ft property, comprising 480 units.
Each resident will be asked to pay a privatization levy worth $35,500 but they have to hit several milestones for the privatization process to proceed successfully.
Firstly, a downpayment of $5,500 each must be placed by at least 80 percent of residents by 29 May 2010, otherwise the privatization process will be revoked.
Next, a sale-and-purchase agreement must be signed by the management committee, and at least 84 percent of residents must pay the full amount of the privatization levy within four months for the privatization process to be completed. However, the committee will have to convene another meeting to discuss on the next course of action if this minimum 84 percent is not met.
Most of the residents have voted in favour of the privatization, while some expressed unwillingness to participate in the exercise. Other residents remained undecided due to its high cost.
One resident said that its high price is a hindrance, but the committee assured that the Central Provident Fund (CPF) savings can be used by the residents in order to pay the full amount of the levy.
The committee should privatize only if an ensuing collective sale emerges, as this would encourage reluctant residents to participate, said another resident.
According to the management committee, privatization will ensure that the entire estate belongs wholly to the residents and can increase its value to match Laguna Park’s valuation if residents decide to sell.
The privatization will also give the committee full authority to manage the estate by allowing them to obtain the management corporation strata title, said Mr. Eric Tan, honorary president of the management committee.
The committee maintained that they will address these concerns at every general meeting and resolve them along the way.