HISTORY is being made in Nigeria’s efforts towards tackling the housing deficit, as three national mortgage banks, for the first time, are in a partnership to finance the development of a brand new residential community known as Grand Lake project, located at Abraham Adesanya, Lekki-Ajay corridor, in Lagos State.
Grand Lake, which, at the take-off, has taken signatures from four reputable developers, with a unique arrangement of a developers’ plot scheme, would make significant impact on the nation’s housing market as middle-class echelon and prospective homeowners would enjoy the opportunity of getting decent, affordable and functional homes numbering 554 housing units, under the first phase, between 18 and 24 months from now.
The coming of this project underscores the need for the newly established Nigerian Mortgage Refinance Company (NMRC) to provide housing stock very fast in order to meet up with the demand for quality, yet affordable homes, making very cheap mortgages available for the middle class.
While Imperial Homes Mortgage Bank is leading the partnership to bankroll the project, planned to cover 93 hectares of land, other financial institutions in the novel and epoch-making initiative are TrustBond Mortgage Bank Plc and Abbey Mortgage Bank.
The three entities are in partnership with Grand Imperio Group, the lead developer, alongside with Ocean Springs Estates Ltd, Vestril Ltd and White Oak Real Estate Ltd to salvage the ravaging challenge to providing decent, affordable and functional homes for the middle class group in Nigeria.
Under the arrangement of the scheme, said to be an ideal price point for emerging middle class in Nigeria in term of affordability, the financiers are opened to work with and finance other developers, who wish to come on board for various kinds of concepts and designs to fit into the entire Grand Lake concept. Developers that have capacity to minimum of 10,000sqm to 20,000sqm would be brought in as the scheme progresses.
The ambitious scheme is a proposed affordable residential community development offering spectacular ambience, detailed finishing, security and recreational facilities.
Striking in its design is a unique man-made lake with a relaxation centre to complement the magnificent landscape.
Grand Lake comprises of one, two, three and four bedroom exquisitely finished terraced bungalows, as well as other housing types that suit the overall design of the emerging city in the Lekki corridor. It would be delivered in phases with air conditioning, PABX system, CCTV, Stone coated roof tiles, swimming pool, bar and lounge, astroturf football pitch, gym, good quality finishes, fully fitted kitchen and recreational facilities.
The scheme will also feature site and serviced plots for residential and commercial developments offering three different plot sizes to suit different requirements.
Prices and payment options are flexible, as the project financiers have between five to 20 years payment plan for the subscribers. While one-off payment attracts 3 percent discount. While a one-bedroom bungalow is going for N7,950,000, a two-bedroom would cost N10,950,000, 3-bedroom is at N13,950,000, and a four-bedroom bungalow is for N17,950,000.
Under the serviced plots, a plot of 600sqm is priced at N18,000,000 at N30,000 per sqm, while plots in the commercial zone are pegged at N45,000.
Managing Director, Imperial Homes Mortgage Bank, Mr Ben Akaneme, said there was need for more operatives and developers to seek internal solution to the nation’s internal problem of housing demand, adding that his bank and other partners were adequately ready to ensure the success of the project.
“All over the world, the mortgage banks and the real estate sector contribute the highest GDP to the economy. So, the first thing we did as mortgage banks was to get our house in order; become national banks, get financial capacity and then form this type of partnership.”
Managing Director, TrustBond Mortgage Bank, Mr Adeniyi Akinluyi, said the financiers and the developers are synergising to make affordable housing for the middle-income earners in Nigeria a reality, assuring that there was a plan to take the initiative to other parts of the country.
Chief Executive Officer of Bran Imperio Group, Mr Adeyeye Ogunwusi, said the concept was unique in that it had never happened in Nigeria for mortgage banks to syndicate to bankroll development of affordable residential projects like Grand Lake. He gave kudos to the Mortgage Bankers Association of Nigerian (MBAN) for supporting the initiative and the Nigeria Mortgage Refinance Company (NMRC), creating the window to have in place longer mortgages. With the environment getting healthier, Ogunwusi said what they as developers intended to do was kick-start the project in order to increase the housing stock, targeting the middle class group.
Mr Kehinde Asumah, who represented, the Managing Director, Vestril Limited, Mr Moruf Olabisi, said his firm saw the opportunity to collaborate with three other developers towards making significant reduction of the nation’s housing deficit, reassuring that the project would be delivered as planned, though since it is a massive development, more developers would still be expected to join them.
“This partnership does not have the capacity to complete the development of the 100 hectares of land, and so we will be requiring the participation of other real estate developers,” he said.
Chief Executive Officer and Executive Secretary, MBAN, Mr Kayode Omotosho, said the initiative and the concept were steps in a right direction.
Omotosho, who noted that it was a common phenomenon in some years to find commercial banks syndicate to bankroll quite number of the high-rise building on the Island, said MBAN, with this kind of scheme, would in the next five years surprise Nigerians.
“This was a common trend in the 70s. Then commercial banks were not only into forex trading but syndicated to develop many of the high-rises you see in Marina and on Broad Street. Almost all the roads that were done from North to the South were through this type of partnership. I am not concerned about the 17million housing deficit, what bothers me is how to solve the problem. MBAN will surprise Nigerians by what it will have achieved over the next five years in terms of housing delivery,” he said.
