SINGAPORE – The Singapore Recreation Club (SRC), which has been at the Padang since 1884, will continue to remain there for the next 30 years if its members can raise $18.4 million.

The lease for the land at Connaught Drive, where the clubhouse is located, is due to expire on July 11, 2024.

But the Singapore Land Authority (SLA)has offered SRC a 30-year extension for a sum of $18,404,070.

In a circular to club members seen by The Straits Times, SRC’s president Dr Sarbjit Singh said this amount is based on the valuation of its sports and recreation space of 5,631 sqm and commercial space of 2,176 sqm, as well as goods and services tax and the certificates of title.

To raise the sum, a spokesman for SRC told ST that it intends to let members vote to opt in on a levy amount of $6,700 for ordinary, women and corporate members. The levy for members aged 80 and above is $2,680 for a membership term of 10 years.

The amount was derived from an assumption that “30 per cent of 3,000 forecasted members may not opt in”.

For members who do not want to pay the levy, or do not respond by Nov 12 this year, SRC said their memberships will cease when the lease ends in 2024.

This proposal will be put up for a vote from Thursday (Sept 30) to Saturday next week.

SRC has to accept SLA’s offer by Nov 19 this year.

ST understands that some members are unhappy about the levy amount.

The spokesman for SRC said: “Those who are against this amount want the club to tap into its reserves to fund the lease renewal.”

Dr Singh told ST that the amount it hopes to collect from members was decided so that SRC would not have to “disturb its reserves”.

“The club’s building is now 27 years old and the infrastructure needs upgrading. Our lifts are getting old and tend to break down, the air conditioning system and our changing rooms need to be upgraded. This can cost up to $5.5 million,” he said.

The club’s reserves of $13.8 million should be put towards its upgrading costs, he said, adding that the club sees an annual operating deficit and expenditure of about $1.2 million.

Retired businessman David Tan, 71, who has been a member of the club since 1990, said he thought the $6,700 amount is reasonable.

“That’s about $18 a month (over 30 years). Considering the club is quite old and the facilities need to be maintained, we should keep the reserves for these purposes. I don’t mind paying the levy,” he said.

“From a retiree’s point of view, it’s quite a lot of money to have to cough up in a lump sum. But I use the gym here almost every day so I think it’s worth it.”

The monthly subscription fee for ordinary members is $85 before GST. The initial fee for ordinary members – which is market driven – is currently around $5,000.

Mr Jason Lim, 64, a trading representative, said that the levy was steep for him, but he is willing to fork out the amount for the club to stay on.

The club began as the Straits Cricket Club in 1880 and was established as SRC in 1883.

Said Mr Lim: “The amount is on the high side, but I know the club wants to err on the side of caution. Some members are unhappy with the levy amount, but we all have the same goal – for SRC to renew its lease.

“However, the management committee (MC) should tell us what they will do if there’s an excess in funds collected – if it could be returned to members or spent on renovation and upgrading works,” he said, adding that he has been a member for six years.

Dr Singh said that if there is an excess, the MC will consult members and decide on how it will be used, such as going towards upgrading costs. Members who voted to opt in can also be rewarded in the form of food and beverage credits.

“SLA gave us a very fair and reasonable price. I see it as my duty to ensure the land lease is renewed as SRC has a rich history at Padang,” he said.

“My main concern is that if the offer is withdrawn, we don’t know what SLA’s next offer will be.”

The lease for the Singapore Cricket Club, which sits at the opposite end of the Padang, will expire in 2026.

The club, which was established in 1852, said in its newsletter in May that it has started talks with SLA on a lease renewal.

Join ST’s Telegram channel here and get the latest breaking news delivered to you.

Source: Read Full Article