Categories: Economy

Lagos Cooperative Buys Into N25 Billion FESTAC Project

According to reports, a real estate business club leveraging the power of numbers in expanding wealth creation possibilities among members through real estate investment has moved to seal a deal with the promoters of FESTAC Phase II project. Discussion has already begun among the two parties, which will see Perfection Real Estate Investors Cooperative taking a chunk of the plots in the 1,126 hectares of land in Egolima District beside 7th Avenue, Festac Phase 1, promoted by New Festac Property Development Company Limited, (NFPDCL).

 

President, Perfection Real Estate Investors Cooperative, Mr Niyi Adeleye, confirmed the development, adding that the objective of is to make homeownership affordable to Nigerians through investment in real estate. The consultant to the project, Mr Innocent Meckson Okoro, said the project is an opportunity for people to make money if they decide to invest in the project.

 

Okoro, who is the founding partner, M.I. Okoro and Associates, a firm of estate surveyors and valuers expressed optimism that the development of Festac Phase II will transform the entire axis into a modern city and yield great benefits both in the infrastructural and socio-economic development of Lagos. Earlier, the vice-chairman, New Festac Property Development Company Limited, Mr Isaac Chuks, assured investors of good returns on investment as the development would make the estate an investment haven.

 

He explained that the estate would be second to none and for the discerning investor, FESTAC Phase II would be an unprecedented estate because of the planned facilities to be put in place. According to him, the serviced plots to be realised through the concession will be complemented with green areas, off street parking, power supply, petrol stations, shopping malls, hospitals, hospitality centres, well-laid roads, waterworks, street lights, sewage disposal systems and all necessary support infrastructure.

 

He disclosed that investors, both foreign and local, are falling over themselves to key into the housing project that is expected to accommodate not less than 350 families, assuring that work has commenced in earnest. According to him, investors from South Africa, United Kingdom, Germany, Sweden and others have already keyed into the site and service scheme.

 

He stressed that NFPDCL has partnered Dredging International to handle the dredging and hydraulic sand-filling of the expansive Festac Phase II, pointing out that deals have been sealed with renowned foreign hospitals to be cited in the megacity to put a stop to Nigerians travelling abroad for medical issues. Explaining that the project will be redesigned to accommodate low-income housing, Chuks said the aspect of roads in and out of the city will be financed by International Finance Corporation, IFC, adding that there are plans to construct rail lines for a railway to serve Festac.

 

The Federal Government approved the concession of Phase II of the Festac scheme to NFPDCL under a 30-year build-operate-and-transfer, BOT, lease agreement. Based on this agreement, NFPDCL is undertaking land reclamation, sand-filling, infrastructural development, marketing and sale of the over 7,000 plots of land to be created from the reclaimed land. The Federal Government is expected to reap N25.765 billion from the project as premium and an additional N150 million ground rent yearly for the 30 years of the concession.

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