Afriland addresses speculations on Falomo Shopping centre - CNBC Africa

Afriland addresses speculations on Falomo Shopping centre

Western Africa

by Thabile Manala 0

Afriland has come out to strongly refute the recent suggestions that there was misconduct in developing Falomo. PHOTO: Afriland Properties

Afriland Properties has come out strongly to refute the recent suggestions that in creating the Falomo shopping centre project, it was involved in any misconduct.  

According to Afriland, a property management, investment and development company, “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.”

The report addressed that 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.

In a statement the company said, “Afriland paid N50m (fifty million naira) to LSDPC as an expression of interest in the redevelopment project.”

The company further ironed out the terms of the contract that, “The LSPDC will receive a 35 per cent 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 company has remained adamant that its dealings were above board, stating that “As an organisation, 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.”

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