Group Plans to Inject $5m Initial Funding Into Housing Development
A group of investors known as Ekabi, which will operate under the aegis of Society of Real Estate Developers of Nigeria (SOREDON), says it is mobilising $5 million (about N1.8bn) initial funding for the development of affordable housing for Nigerians.
Michael Adedeji, chairman of the group, told BusinessDay in Lagos, weekend, that the group would be partnering two foreign firms that have the expertise in real estate development, each from Germany and Italy, and some corporate members from Nigeria.
Adedeji said the group would be seeking to breach the over 17 million Nigeria’s housing deficit through collaboration with the federal and state governments with the target to develop about 10,000 housing units annually, for low-income and middle-class earners, on demand.
He explained that the group would be working out a mortgage arrangement that would enable a subscriber to its housing scheme pay only 10 percent of the value of the housing unit demanded, while the remaining 90 percent would be staggered over four years.
“The 17 million housing shortage increases every year by a factor directly related to the population increase. If what is being produced every year is less than the increase in demand annually, then the shortage will continue ad infinitum.
“The SOREDON group projects that it seems impossible to overcome the housing shortage at the pace currently experienced in Nigeria unless a drastic step is taken.
“This is what has prompted the sponsorship of SOREDON Limited by guarantee. This will enable the society to perform its function as project executors and societal benefactors.
“The membership of this society for this reason is restricted to corporate entities in the field of real estate development, construction engineering, civil, structural, mechanical and electrical engineering, building and allied trade concerns.
“A corporate member must of necessity show a track record of successful operation within the last five years and the applicant company must have qualified, competent and certified engineers in their payroll before the company can be admitted into the associate membership grade. The number of companies to be admitted into the associate membership grade in the first instance shall be 40,” he said.
According to Adedeji, the group will admit two international multinational companies with track record to join its fold in a bid to deliver quality houses at a price “that is affordable and slightly less than the market prevailing price of today.
“One of the two companies to be admitted into the membership of this society shall come from Italy and it is a company of enviable track record, still performing excellently in the economy of Italy and the second one to be admitted into the membership of this society is one of the three major engineering companies from Germany, which has the track record that places them in the ‘A’ category of any company in their field of endeavour.”
Source: Business Day