\n20-08-2015; Lagos: The management of Afriland Properties Plc notes with concern, recent reports relating to its transaction to redesign and\u00a0redevelop the iconic Falomo Shopping Centre in Lagos.<\/p>\n
These unverified reports have implied that, the contract with the Lagos\u00a0State Development and Property Corporation (LSDPC) was terminated on the grounds that the concession terms are “grossly detrimental” to Lagos State and its residents.\u00a0 The reports also claim that Afriland Properties Plc only made a payment of N50 million for a 50-year lease of the government-owned land.<\/p>\n
Though the authenticity of these reports is unconfirmed, Afriland strongly\u00a0refutes the suggestion that it has engaged in any misconduct or that the\u00a0transaction is in any way detrimental to the people and government of\u00a0Lagos State.<\/p>\n
We are strongly committed to creating a world class project, which will\u00a0act as an economic magnet for central Lagos, creating opportunities for\u00a0Lagosians and which crucially has been structured to ensure ongoing value will accrue to Lagos State and to Lagosians. The contract was negotiated transparently and in accordance with best practice.<\/p>\n
Afriland Properties PLC and the Lagos State Development Property\u00a0Corporation (LSDPC), acting on behalf of the Lagos State government,\u00a0established a Special Purpose Vehicle( SPV) which is jointly owned by the parties for the specific purpose of developing the Falomo project.<\/p>\n
Under the terms of the agreement, the SPV- Falomo Shopping Centre\u00a0Development Company Ltd – was granted a concession to, amongst other things, develop, build, operate and maintain the Project on a Build,\u00a0Operate and Transfer (BOT) basis.<\/p>\n
Afriland paid N50m (fifty million naira) to LSDPC as an expression of\u00a0interest in the redevelopment project.<\/p>\n
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<\/p>\n
Afriland is obliged to fund the entirety of the development costs which is\u00a0projected to exceed N30 billion without recourse to the Nigerian taxpayer.<\/p>\n
The new facility will comprise a state-of-the-art shopping mall, office\u00a0complex and generous parking facilities.<\/p>\n
Afriland has consistently adhered to the terms of its agreement with\u00a0LSDPC, as outlined in the Memorandum of Understanding (MoU) and Joint Venture Agreement that were signed and executed by the aforementioned parties.<\/p>\n
Furthermore, all value to be derived from the creation of this world-class\u00a0commercial venture will be held in, and enjoyed by Lagos State and its\u00a0residents. The development will ultimately revert to the state upon\u00a0expiration of the lease.<\/p>\n
Apart from delivering an environment that befits the city and is\u00a0consistent with the government’s goal of an aesthetically pleasing\u00a0skyline, the Falomo site will be home to thriving businesses that will\u00a0contribute significantly to the Internally Generated Revenue (IGR) of the\u00a0state.<\/p>\n
As an organization, Afriland Properties Plc and its affiliated companies\u00a0have always upheld the values of integrity and excellence. We have nothing but the utmost respect for the dictates of the law and till date, have acted accordingly. As such, we are unequivocal in our belief that our sincere intentions for this landmark project will be validated in due
\ncourse.<\/p>\n
As a significant investor in Nigeria and one which is committed to\u00a0ensuring value creation within the country, we would underline the\u00a0importance of creating a business environment that is based on\u00a0transparency, contractual certainty and social partnership. At a time when Nigeria urgently needs to diversify its economy and attract broad based foreign direct investment, the rumours we have identified do little to promote the National interest or create the business environment our\u00a0country needs\/\/end.<\/p>\n
Signed:<\/p>\n
Uzo Oshogwe,
\nMD\/CEO Afriland Properties Plc<\/p>\n","protected":false},"excerpt":{"rendered":"
20-08-2015; Lagos: The management of Afriland Properties Plc notes with concern, recent reports relating to its transaction to redesign and\u00a0redevelop the iconic Falomo Shopping Centre in Lagos. These unverified reports…<\/p>\n","protected":false},"author":1,"featured_media":41373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[11],"tags":[],"class_list":["post-41372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pointblanknews-investigations"],"yoast_head":"\n