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Developer debunks estate residents’ claims on management contract

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Alpha Bay Estate

Alpha Bay Estate

Residents noted that consequent upon the withdrawal of services to Alpha Bay Estate by the company as a result of non-payment of service charge by residents, some residents of the estate teamed up with other property owners contiguous to the estate who did not purchase their properties from the company and therefore have no contract whatsoever with the company to form ABERA.

ADMIRALTY Homes Limited has dismissed claims by the residents of Alpha Bay Estate, who alleged that the company breached an existing management contract of the estate.

While the company – being the owner and developer of the Alpha Bay Estate, Lekki, Lagos, – denied party to such contract, it described published claims by some aggrieved members of residents’ association as a cheer attempt to bring the company to disrepute.

Management of Admiralty Homes Limited, in a statement, explained that there are more than one residents’ associations in the estate, but the Alpha Bay Estate Residents Association (ABERA) had gone on warpath with the company over service charges that were introduced.

Chairman of the Admiralty Homes Limited, Dun Salami, observed that for over five out of the eight years of the estate’s existence over 80 per cent of the ABERA members, who purchased their properties from the company, did not pay any service charge to the company, while the remaining 20 per cent of the said group only paid the first year service charge upon taking possession of their properties.

Salami said that there were also some members of ABERA who up till now have not completed payment of the purchase price of their properties.

But, the company notwithstanding provided and ran services to the estate for more than five years from its pocket and service charge paid by non-members of ABERA without any ABERA member paying for those services.
“When the provision of these services, which were not paid for became too burdensome on the company, the company decided to withdraw those services. The company in order to continue providing water services, which no other person is allowed to provide in accordance with the agreement entered into with it purchasers, and in order to ensure that the service is paid for in line with the said agreement, introduced pay-as-you-use water metre to every property,” he said.

The chairman added that consequent upon the withdrawal of services to Alpha Bay Estate by the company as a result of non-payment of service charge by residents, some residents of the estate teamed up with other property owners contiguous to the estate who did not purchase their properties from the company and therefore have no contract whatsoever with the company to form ABERA.

Meanwhile, a majority of property owners within the estate who derive their title from the company remained with the company and continued to pay service charge to the company and the company has resumed rendering services to those property owners who have chosen to remain with the company, Salami said.

He observed that there are also other members of Alpha Bay estate, who though derived their title from the company, but have chosen to stand on their own without paying any service charge to either ABERA or the company.

This class of residents has formed an association in the estate, which they called Alpha Bay Estate Community Residents Association (ACORA), while few others have chosen not to be members of any of the associations and therefore do not pay service charge to either ABERA, ACORA or the company.

Salami said further that it was in order to amicably resolve this division and bring together all factions that Admiralty Homes Management Company Limited and ABERA met sometime in October 2013 and on October 15, 2013 entered into an arrangement for the management of the estate by all residents jointly, consequent upon the fulfillment of some conditions by all the factions.

However from the date of executing that agreement up till today, ABERA has consistently and flagrantly flouted some fundamental clauses in the said agreement which consequently led to Admiralty Homes Management Company Limited repudiating the agreement.

“ABERA has gone to town painting the company black for allegedly breaching the provisions of the said agreement, but has withheld from the public the fact that it has not on its own part, complied with the said agreement.

It must be pointed out that the company being the developer and owner of the estate and the facilities in dispute is not a party to the purported agreement dated October 15, 2013 entered between ABERA and Admiralty Homes Management Limited, and therefore cannot be bound by any agreement entered into with ABERA by the management company.

ABERA does not in any way and manner represent all the residents of Alpha Estate and the averments in their claim in court, which were published in newspapers is total falsehood and a deliberate misrepresentation of the real facts,” Salami said.


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