Firm joins consortium for Grandlake estate project

HOPE for significant home ownership in Nigeria brightened last week as a notable primary mortgage institution, Homebase Mortgage Bank Limited joined a consortium to provide over 5,000 housing units, packaged under GrandLake Estate, located at Abraham Adesanya, Lekki-Ajah corridor, in Lagos State.

  Prior last week, two national mortgage banks – Imperial Homes Mortgage Bank Plc and Trust Bond Bank Plc, had kick-started the private sector initiative to increase the nation’s housing stock through a joint finance arrangement for the emerging residential community in Lagos.

  Besides, three reputable developers, including Gran Imperio Group, Ocean Springs Estates Ltd, Vestril Ltd, are in a joint venture to develop the estate, already structured into phases for ease of delivery. A total of 554 housing units would be delivered under the first phase within two years.

  Under the arrangement of the scheme, said to be an “ideal price point” for emerging middle class in Nigeria in terms 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.  Such developers should have capacity to take at least 10,000 sqm to 20,000 sqm of the landed property.

  The ambitious scheme is a proposed affordable residential community development offering spectacular ambience, detailed finishing, security and recreational facilities.  Also striking in its design is a unique man-made lake with a relaxation centre to complement the magnificent landscape.

 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 your requirement.

  Prices and payment options have been adjudged flexible, as financiers have between five to 20 years payment plan for the subscribers. While one-off payment attracts 3% percent discount. While 1 bedroom bungalow is going for N7,950,000, 2 bedroom would cost N10,950,000, 3 bedroom is up for grab at N13,950,000, and the 4 bedroom bungalow is for a token of N17,950,000.  

  Under the serviced plots, a plot of 600 sqm is priced at N18,000,000 at N30,000 per sqm while plots in the commercial zone are pegged at N45,000.00.

  Commenting on the project, Managing Director and Chief Executive Officer, Homebase Mortgage Bank Limited, Dr. Femi Johnson said the partnership was a good beginning, as uncertainty has in recent times been trailing the oil sector, adding that, it was becoming obvious that the structure of the economy was going to change in the nearest future. 

  “This is one of the partnerships that will define our economy going into the future. This is an epoch making event, and it is the beginning of a new thing, and here we are talking about land of almost a million square metres and houses that will be on it will be about 5,000 units.”

  Admitting that, the feat appears little in comparison with the 17 million housing deficit in the country, Johnson, notwithstanding said the synergy was the beginning of better days ahead. “This is the first time mortgage banks are coming together to pull resources especially after the capital raising and restructuring of the sector. People can now saying I am 4,900 percent more capitalized than I was before the recapitalization. I think this not enough and I think people should partner with others so to pool capital to be able to do something beyond our individual capability. This is an example for other people and when something starts to roll, it will gather momentum.”

  He charged other players in the industry to come up with similar accord towards lifting the real estate industry in Nigeria. “ As leaders in the housing financing space, we are calling on other institutions to pull resources and do something bigger. At individual level, we have done projects and succeeded and we are coming together to pull those individual experiences to do something far more than our individual capacities.”

  Johnson, who is also the President of the Mortgage Banks Association of Nigeria (MBAN), said Nigeria Mortgage Refinancing Corporation (NMRC) was fully backing the novel initiative, adding that, the houses that would be created from the partnership will conform to the standard of NMRC. “The company will be able to refinance the loans that will be granted to buy these houses. The facilities that will be granted will conform to the standard of NMRC. People should expect to have mortgages of low interest rate and tenor that will be up to 20 years.”

  Managing Director, Imperial Homes Plc, Mr. Ben Akaneme, said this is a very strong partnership in housing Nigerians, which will lead us to what is obtained in the industrialized countries.  He said very soon, the interest rates would not be about oil but prices of houses in the country.

  Managing Director, TrustBond Mortgage Bank, Mr. Adeniyi Akinluyi, said that the subscribers have nothing to worry about as far as the scheme was concerned, as all players have same standard.   

  “We have the weight of the entire mortgage banking sector behind this partnership; we also have the weight of the NMRC behind it. We have introduced some standards into the sector and so, we have uniform offer letter for people and also uniform underwriting standard and we are working closer and better as a group of mortgage operators and this is going enhance all of that.”

    Chief Executive Officer of Gran Imperio Group, Mr. Adeyeye Ogunwusi, said currently, the project was making significant progress, as talks were going on with other developers, now coming on board.

  Ogunwusi, who represented other two developing firms, said construction work has commenced, as workers had been mobilized to site, with partial sand filling ongoing to raise the topography of the place, as full-blast construction would commence towards the end of this month.  He said added that the strategy for the project was to bite in bites and pieces, with a view to creating large stock of housings, which the mortgage banks would take on.

  Also, he said the project a scheme known as the said the project would encourage developers’ scheme, which according to him, would afford other interested developers to bring their designs for residential and commercial developments offering a minimum of 10,000,000 sqm.

  Ogunwusi added that the project comes with a unique man-made lake with a relaxation centre complements the magnificent landscape. Grand Lake comprises 2 bedroom, 3 bedroom, and 4 bedroom exquisitely finished terraced bungalows, 3 bedroom town-houses with boys’ quarters, to be delivered in phases with air conditioning, good quality finishes, fully fitted kitchen and recreational facilities.