LAPH initiative to put 20,000 units in Lagos housing market — Nigeria Today
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LAPH initiative to put 20,000 units in Lagos housing market

Lagos Affordable Public Housing (LAPH) initiative, a joint venture between the government and private estate developers is to add in the least 20,000 units to the Lagos housing stock by 2020.

Lagos, Nigeria’s commercial/economic hub is said to be in the deficit of about three million housing units, and an estimated population of 21 people, a large chunk of which live slum areas.

The state government believes, however, that to defray the deficit, a sustainable partnership with private developers is required.

Under the LAPH initiative, the state is providing land, documentation in terms of permits, approvals, registration of documents and stamping as its own contribution to the joint venture while the venture partners are providing funds and construction expertise as their contribution.

“In line with the investment policy of the state government and for the purpose of creating an investment data base, title to the project site is vested in IBILE Holdings Limited, the investment agency of the state government which will in turn grant a deed of sublease of the unexpired residue of its interest to the Special Purpose Vehicle/Project Company to be incorporated for the purpose of execution and management of the project,” said Gbolahan Lawal, Lagos State commissioner for housing.

According to Lawal, Special Purpose Vehicle (SPV)/Project Company is therefore made up of both parties and the shareholding would be based on the value of the equity contribution of the parties.

Under the arrangement, the partners are looking to jointly delivering 3,300 units of housing at Ikota and Ogmbo scheme being developed by Multi-Purpose Infrastructure Development Construction Limited, while the Ibeshe and Owutu scheme that would deliver 3,000 housing units is being developed by Affordable Mass Housing Company Limited.

Other joint venture partnership arrangements are the Igbogbo Housing Scheme, being developed by M-Bridge Ltd. To deliver 416 housing units; Ijora-Badiya, being developed by Brains and Hammers Limited, with 771 housing units; Imota, Ayobo and Idale scheme by Echostone Management Corp, with 2,000 housing units being developed; Ilamoye-Isolo and Abijo Scheme, a 2,464 housing units scheme being developed by Baden Moyet Nigeria Limited/Lemine Investment Group and Tolu, while the Abule Ado housing scheme being developed by Tact Urban Infrastructure Development will deliver 2,126 housing units.

Lawal said the government on its own will continue to implement the rent-to-own and rental housing policy with the aim to making housing readily accessible to the citizens especially the low and middle income earners in the formal and informal sectors.

“Post construction management of housing estates remains a challenge and facility managers have been engaged by government to ensure the sustainability of government housing estates.

In line with this, the government, he said has fully funded and delivered seven housing estates with a combined 720 units at MKO Garden Housing scheme, Oko Oba Housing Scheme, Mushin Housing Scheme, Ilupeju Housing Scheme, Omole I & II Housing Scheme, Magodo Isheri Housing Scheme and Sir Michael Otedola Estate, Odoragunshin, Epe.

 

JOSHUA BASSEY

The post LAPH initiative to put 20,000 units in Lagos housing market appeared first on BusinessDay : News you can trust.

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