A partnership arrangement between a private developer – Messrs Axial Nigeria Limited and four Nigerian universities has delivered over 5,000 units of students’ hostels in Lagos, Ekiti, Osun and Ogun States.
The student housing initiative was undertaken under Build, Operate and Transfer (BoT) with the universities, namely the University of Lagos (UNILAG), Federal University of Oye-Ekiti (FUOYE), Obafemi Awolowo University (OAU), Olabisi Onabanjo University (OOU) and College of Nursing Science, Ekiti.
In UNILAG, the developer delivered 1,147 units known as El-Kanemi Halls 1 and II. It also delivered 600 investment housing through an online community housing and finance platform popularly known as BREICS.
At OAU, 1,040 units were constructed for the school’s Centre for Distance Learning, christened as Moro Osun State Phases 1 and II. It also built 412 units for the same varsity.
At OOU, Ago Iwoye Campus, the company completed 506 units structured in two phases, while in FUOYE, it delivered 474 units in the College of Nursing Science, and 600 units were in EKSUTH, Ado-Ekiti within six months.
Speaking on the projects at the weekend, Managing Partner, Axial, Eyitope Ajayi, an architect, said the over 5,000 units serve as the company’s proof of concept and capacity to deliver developments that have a direct bearing on human lives and the sector.
According to him, the projects became a reality due to the vision, strong leadership and doggedness of his mentor and Axial’s founder Sir Oladipupo Ajayi, the President, Architects Registration Council of Nigeria (ARCON) and Chairman, Axial’s student housing initiative.
Ajayi said the company looks forward to partnerships with infrastructure financing entities for lower untreated rates amortised over longer periods for more sustainable expansion into other geopolitical zones, the over 5,000 units have housed over 50,000 residents since completion.
The investment and property development expert added that Axial will continue to promote social impact development through affordable housing and increased access to education in the country.
Justifying his company’s decision to delve into student housing construction for higher institutions, Ajayi said, less than 20 per cent of Nigerian students in the various citadel of learning are housed on their campuses, adding that the government both at the federal and state levels had come up with policies that encourage private investors to own and run the hostels.
On the investment option, he said: “Axial’s private infrastructure debentures allow investors to acquire a property with benefits ranging from capital appreciation to high rental yields with regular income yearly in universities where they are located.
“The stress of management and the need to provide tenants or maintain the property are borne by our expert management team. About 90 per cent of the students live off campus because of inadequate on-campus accommodation, with young girls exposed to negative elements outside the campus walls.
“The existing housing is not only inadequate but unhygienic and unconducive to a learning environment. Axial provides standard accommodation at an affordable cost to female students.
“In the last few years, our capital growth in student housing development has recorded significantly from N750 million, we started with now to over N10 billion without default in payment of yearly rentals to our investors and financiers.”
