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LequteMan
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Nigeria - Afriland Properties Plc has reacted to reports of the termination of its project on Falomo Shopping Complex in Lagos by the state governor Akinwumi Ambode.
There had been reports that Afriland's contract with the Lagos State Development and Property Corporation (LSDPC) was terminated on the grounds that the concession terms are “grossly detrimental” to Lagos State and its resident and that Afriland Properties Plc only made a payment of N50 million for a 50-year lease of the government-owned land."
However Afriland has refuted the reports, saying the project was co-owned with the Lagos state government.
It says an agreement between Afriland and LSDPC which was on behalf of the state government had led to the development of the Falomo Shopping centre- and owned by both parties.
"Under the terms of the agreement, the SPV- Falomo Shopping Centre Development Company Ltd – was granted a concession to, amongst other things, develop, build, operate and maintain the Project on a Build, Operate and Transfer (BOT) basis," it said.
"Afriland paid N50m (fifty million naira) to LSDPC as an expression of interest in the redevelopment project. The LSPDC will receive a 35% interest in the SPV for its land contribution and through this significant Equity Holding, will continue to receive significant ongoing value."
"Afriland is obliged to fund the entirety of the development costs which is projected to exceed N30 billion without recourse to the Nigerian taxpayer," it added, saying the new facility will comprise a state-of-the-art shopping mall, office complex and generous parking facilities.
"Furthermore, all value to be derived from the creation of this world-class commercial venture will be held in, and enjoyed by Lagos State and its residents. The development will ultimately revert to the state upon expiration of the lease.
"Apart from delivering an environment that befits the city and is consistent with the government’s goal of an aesthetically pleasing skyline, the Falomo site will be home to thriving businesses that will contribute significantly to the Internally Generated Revenue (IGR) of the state.
The company said it has consistently adhered to the terms of its agreement with LSDPC, as outlined in the Memorandum of Understanding (MoU) and Joint Venture Agreement that were signed and executed by the aforementioned parties.
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There had been reports that Afriland's contract with the Lagos State Development and Property Corporation (LSDPC) was terminated on the grounds that the concession terms are “grossly detrimental” to Lagos State and its resident and that Afriland Properties Plc only made a payment of N50 million for a 50-year lease of the government-owned land."
However Afriland has refuted the reports, saying the project was co-owned with the Lagos state government.
It says an agreement between Afriland and LSDPC which was on behalf of the state government had led to the development of the Falomo Shopping centre- and owned by both parties.
"Under the terms of the agreement, the SPV- Falomo Shopping Centre Development Company Ltd – was granted a concession to, amongst other things, develop, build, operate and maintain the Project on a Build, Operate and Transfer (BOT) basis," it said.
"Afriland paid N50m (fifty million naira) to LSDPC as an expression of interest in the redevelopment project. The LSPDC will receive a 35% interest in the SPV for its land contribution and through this significant Equity Holding, will continue to receive significant ongoing value."
"Afriland is obliged to fund the entirety of the development costs which is projected to exceed N30 billion without recourse to the Nigerian taxpayer," it added, saying the new facility will comprise a state-of-the-art shopping mall, office complex and generous parking facilities.
"Furthermore, all value to be derived from the creation of this world-class commercial venture will be held in, and enjoyed by Lagos State and its residents. The development will ultimately revert to the state upon expiration of the lease.
"Apart from delivering an environment that befits the city and is consistent with the government’s goal of an aesthetically pleasing skyline, the Falomo site will be home to thriving businesses that will contribute significantly to the Internally Generated Revenue (IGR) of the state.
The company said it has consistently adhered to the terms of its agreement with LSDPC, as outlined in the Memorandum of Understanding (MoU) and Joint Venture Agreement that were signed and executed by the aforementioned parties.
Proshare
