The Villages housing project at Coverley has been labelled by Opposition Leader Mia Mottley as the biggest sell-out in Barbados’ history.
Stating that the 103-acre Christ Church property had “effectively been given away for next kin to nothing”, Mottley told a Barbados Labour Party political meeting at Haggatt Hall, St Michael last night that a private entity, Housing Concepts SRL, could gain over $1 billion while the National Housing Corporation (NHC) would struggle to scrape $10 million from the project.
Quoting from a document described as a draft agreement, she said the agreement between the NHC and Caribbean Homes and Housing Concepts SRL had been signed within the last six months; and asked Minister of Housing and Lands Michael Lashley whether Housing Concepts was granted power of attorney from the NHC to provide everything on the project, including conveyancing, engineering, building and surveying.
She also asked the Minister whether it was true that:
• Housing Concepts was given permission to mortgage NHC’s land at the outset in order to raise the money to finance the start of the development,
• the NHC would set the prices for the houses,
• Housing Concepts would receive $1 200 per year (and rising) from each homeowner to keep the development clean and to operate the sewage project which is equivalent to a minimum of $1.23 million a year when all the lots are sold, and
• on top of the already generous terms, Housing Concepts would pay no transfer tax or stamp duty, as NHC would be conveying the lots directly to the purchasers – thereby saving Housing Concepts from paying a minimum of $7 million in stamp duty and Property Transfer Tax to the Government.
Mottley also asked whether the NHC would be paid only $3 per square foot for each lot sold less a proportional part of any expenses incurred by NHC on the sale, and one per cent of the purchase price on any house sold less any money it received from the sale of the land.
Purchase price
She pointed out that, given the average cost of the houses at Coverley, the one per cent of the purchase price of the houses was less than the amount that would be received on the sale of the land.
Hence, she added, the NHC was only likely to get the $3 per square foot less the expenses incurred on sale, probably legal, real estate and marketing.
Mottley also said that when the rent from the commercial buildings was included with what Housing Concepts would gain from the sale of the houses and the maintenance, the transaction could be worth over $1 billion to Housing Concepts.
“In contrast, NHC would struggle to only make $10 million,” she told the meeting.
(RJ)