Over the last few months, there have been a number of rumours making rounds in Lahore about the merger of Phase II of State Life Insurance Employees Cooperative Housing Society Ltd with the Defence Housing Authority (DHA). However, no definitive information has come to the fore in this regard.
To get updates, I contacted a State Life official and came across some information that I’d like to share with you. According to the official, State Life has secured the approval for the merger in its annual general meeting, but DHA has not been contacted about this.
I also learned that State Life is mulling over another option – merging State Life Phase II with Phase I. If this option is taken up, the developer will offer a 10-marla plot in Phase I for every 1-kanal plot forfeited in Phase II and a 5-marla plot in Phase I for every 10-marla plot sacrificed in Phase II. The official I conversed with confirmed that the company has received applications from members in this regard.
However, as no official announcement about either of the mergers has been made by State Life so far, you should avoid making any investment decisions based on the talk of the town.
Development work, prices and activity
Even years after the launch, there are no traces of development in the society and the management, preoccupied with scrutinising merger options, doesn’t seem to be focusing on this aspect at all.
Despite all the controversies the society has been embroiled in, people are still trading plots here. According to an estate agent based in Lahore, the sale price of 1-kanal plots in the locality ranges between PKR 2,800,000 and PKR 3,500,000 and the price of 10-marla plots lingers between PKR 1,800,000 and 2,000,000.
Merger with Phase I
Merger or, in other words, the allotment of plots in State Life’s Phase I seems to be a favourable idea in terms of property values.
The average sale price of 10-marla plots in Phase I is PKR 7,486,364 currently, according to data meticulously maintained by Zameen.com. On the other hand, the average price of 5-marla plots is PKR 3,770,714. These numbers show that if plot owners in Phase II forfeit their 1-kanal or 10-marla plots and accept 10-marla and 5-marla plots in Phase I respectively, they will still be able to enjoy some benefits because there is a good difference between property prices in these two phases.
Merger with DHA
And suppose the merger with DHA takes place and State Life’s Phase II becomes part of Prism 9. Well, even in this case, plot owners in Phase II don’t need to worry.
The average price of 10-marla plots in Prism 9, according to Zameen.com’s stats, is PKR 4,959,985 and the average price of 5-marla plots is PKR 3,021,967.
Considering these numbers, plot owners in Phase II will be able to secure profits in this case as well.
Let me state this point once again: No official announcement has been made about either of these mergers. So, please, make informed investment decisions.
That’s all about State Life’s Phase II for the day. Please feel free to post comments below.