While terminating the contract Gov Ambode had said that only N50m was paid by the concessionaire for a 50-year lease of the property belonging to the govt, an agreement which according to him is not in the interest of the residents of the state. The statement from Afriland Properties after the cut...
The management of Afriland Properties Plc notes with concern, recent reports relating to its transaction to redesign and redevelop the iconic Falomo Shopping Centre in Lagos. These unverified reports have implied that, the 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 residents. 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.
Though the authenticity of these reports is unconfirmed, Afriland strongly refutes the suggestion that it has engaged in any misconduct or that the transaction is in any way detrimental to the people and government of Lagos State. We are strongly committed to creating a world class project, which will act as an economic magnet for central Lagos, creating opportunities for Lagosians 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. Afriland Properties PLC and the Lagos State Development Property Corporation (LSDPC), acting on behalf of the Lagos State government, established a Special Purpose Vehicle (SPV) which is jointly owned by the parties for the specific purpose of developing the Falomo project. 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. 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.
The new facility will comprise a state-of-the-art shopping mall, office complex and generous parking facilities. Afriland 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. 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.
As an organization, Afriland Properties Plc and its affiliated companies have 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 course.
As a significant investor in Nigeria and one which is committed to ensuring value creation within the country, we would underline the importance of creating a business environment that is based on transparency, 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 country needs.
“Uzo Oshogwe, MD/CEO Afriland Properties Plc.”
40 comments:
Their bizz..
Ok
OK oo
Wait! project of about 30 billion, with 35% equity in the partnership! for 50 years!
Thinking the value of that land would be about 3-4 billion Naira....a plot in Ikoyi is between 300-400 million, that implies that for the 50 million given to Lagos state + 35% equity, its seem fair owing to the fact that the property before now, was not generating any significant revenues.
This Ambode is a bastard! Thief Tinubu's bitch!!!!
hmmm
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They should go and sit down anybody that has sense should know that Awolowo road is the worst place to build such a thing. The congestion on that road is killing not to talk of when that thing is completed and is functional.
o gah o
Too long....
Didn't Ambode get a brief from LSDPC before revoking the contract?
When people can't even get a house to lease for N1 million a year. I would to know who negotiated the contract.
Seems the past govt and the present 1 are having issues
All said and done...
We apr8 their dishing out all dis info but let them forward it to d necessary quarters so dat it wil go a long way.
50M for 50years.. chai
Even if na hauz rent..
It's too cheap
All said and done...
We apr8 their dishing out all dis info but let them forward it to d necessary quarters so dat it wil go a long way.
All said and done...
We apr8 their dishing out all dis info but let them forward it to d necessary quarters so dat it wil go a long way.
Tinubu probably has eyes on the Falomo project. I am sorry for Ambode, after 4 years, he will give account.
N50m expression of interest payment was broadcast, total funding by the contractors and 37% share of profit to Lagos state govt seems to be ignored, perhaps N50m is low, but terminating the contract (if there were no attempt to negotiate a better deal) suggest malice against the previous administration, which is not unusual anywhere in the world.
As in serious bastard.
Terminate this contract now.
Okay
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Ndi ofe nmanu, na una sabi biko. Linda take note!
Ndi ofe nmanu, na una sabi biko. Linda take note!
Fashola did not stop Tinubu's, so I c no reason y Ambode shud stop that of Fashola is he not suppose to continue from were Fashola stopped,anyways Ambode till next election Lagosian will speak with their ballot papers,do as u like n b dancing to Tinubu's tone. A word is enuf 4 d wise.
It is obvious the Merchant of Lagos who owns more skyscrapers in Lagos than any living or dead man wants yo add Falmouth Complex to his estate and has instructed his boy,Ambode to ensure that. With this account by the investor,Tinubu and Ambode had tried to deceive Lagos Ian for their own selfish end.Shame on them
This Fashola VS Tinubu (Ambode) will destroy the south west APC oh!
Tony elemelu na big thief . Fifty million for fifty years . You can't even get a boy's quarter on Awolowo for that amount per year . TOE , this is the beginning of your woes .
if you are Lagos State will you tolerate it , ordinary to promote people in UBA is hard for you but you want to reap off the sweat of Lagos State Tax Payers at such a cheap rate . God don catch you, expression of interest ko ' expression of interest ni' . Your house in ikoyi that was bought with with shareholders funds is it not worth billions ?
Every contract has an exit clause. Due process please.
This is obviously stems from a smear campaign against Fashola. And APC is making a big mistake because this will make them lose the next election. A house divided against itself can never stand.
We should all continue to pray for our leaders to fight among themselves. This is the only way some truth about their deeds will be revealed. If Ambode can attack Fashola over Falomo Shopping Complex, then he should be sincere enough to also undo the exploitation on the Lekki toll. Precisely what is Lagos State's Internally Generated Revenue that they'd find it hard to develop Falomo Shopping Complex or the Lekki Ajah road themselves? Has anyone ever asked why Lagos State is hugely indebted? They've tied their personal interests in all of these projects so deep that their generations will benefit. Those who live in glass houses shouldn't throw stones but Nigerians are glad about your differences because it's pretty much the only way the truth will gradually unravel. Hisssssss.
Akin wunmi Ambode stop giving out distorted information just because you want to fo your master's bidding. I know you are looking for ways to become the darling of Lagosian like Babatunde Raji Fashola is but that is impossible because BRF is a true Lagosian whereas you are not you are what we call an "asawo" meaning someone who ran in just like your master. How long are you going to try and hood wink the Lagosian by diverting their attention to your trumped up Fashola inadequacies. Lagosian are not fools they will soon see that you are not capable of governing like Fashola which is what they want. Focus on doing your best and not being a Fashola. We already know that public speaking is one of your major problems Pele . After all every one knows that it was Fashola's campaign that got you in like it or not.
There is clearly nothing wrong with the original structure of this transaction. Ambode is setting a dangerous precedence. If the private sector can no longer trust govt. to keep to contractual obligations, then private money will flee elsewhere. And who will suffer? The very Lagosians he claims he is protecting. Pity.
If u truly work in UBA, then ur low IQ as displayed in ur comment, explains ur lack of promotion. Critical reasoning - zero!
All these are efforts to scandalize and demonize the administration of Fashola but it will fail. The N50million Falomo Shopping Complex has confirmed the desire of Tinubu to further acquire the complex given an expose of the facts behind the Investment by the concessionary firm-Afriland Properties Limited. I concur with the above anonymous response on Linda Ikeji,
" Wait! project of about 30 billion, with 35% equity in the partnership! for 50 years! Thinking the value of that land would be about 3-4 billion Naira....a plot in Ikoyi is between 300-400 million, that implies that for the 50 million given to Lagos state + 35% equity, its seem fair owing to the fact that the property before now, was not generating any significant revenues.
This Ambode is a bastard! Thief Tinubu's bitch!!!!"
Whether this stems from a smear campaign from Fashola, there needs to be a thorough investigation into the matter, transparency should be an all round thing and nobody is above it.
It is a pity that Ambode a supposed chartered accountant, did not fully understand the Public Private Partnership contract (BUILD DEVELOP OPERATE AND TRANSFER BACK TO LAGOS STATE GOVERNMENT AFTER 50YEARS) before terminating it.
Ambode has no ideas to bring on the table of governance but to go on a needless termination of contract. By the 100days of Fashola so much had been achieved. The consequence of what Ambode has done is that it will expose Lagos State Government to liability for an unnecessary breach of contract and will pile up judgment debt against the state.
Ambode is teaming up with Tinubu and he will lose the next election to a credible opposition candidate. Fashola is too gentle for not having revoked Tinubu's acquisition of Royal Gardens along Lekki amongst many other interests acquired by Tinubu. This is why politics is a dirty game not meant for gentlemen. The question then is, is it fair for politics to encourage brilliant people with ideas to shun politics and prevent them from contributing their best to governance and development in Nigeria? I WEEP FOR NIGERIA.
So many dumb people on this blog.
Did you even read the story?
My dear just stick to transgender and Kardashian stories.
That is Tinubu's handwork, and one day, he will fall.
Wow, I am totally dissapointed at Akinwunmi Ambode. This contract makes sense whichever way you look at it. All Lagos state was contributing was land for 35% equity. A very sensible way to genenrate revenue for the govt without having to dip into tax payers money. I definitely agree with the comment that said this termination will set a bad precedence for investors in Lagos State. I hope Ambode can stand up and be a man, and not somebody's puppet
Kai Ken Oshogwe (Alucobond MD) was waiting to clad the building o! Afterall the noise, yeye man
i hope people realise that Nigerians are determined to vote you in if they believe in you and vote you out if they don't. if ambode continues like this, 2nd term will do him like horror movie...he will be shocked out of office like Jonathan, make you foolishly dey allow yourself to be 'poppeted' rather than consentrate on improving your speech skills and continous improvement of Lagos from where BRF stopped. continue to spread bad blood you hear, whether you like it or YES BRF go dey Buhari's cabinet so you better begin to face reality or kuku ma jump inside the lagoon your uncle wanted to send my ibo brothers to the other time...remember Buhari is not for anybody but for everybody, EVERYBODY OOOOO Ambode EVEryBOdY....continue your witch hunt, e go do you like rapture, you shall be left behind...half word...or better stil, gerarahia
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