enyojo:

^^ Oyb, has that anything to do with this?
Or is there something u know that we don't?

oyb:

the word which a lot of newspapers are keeping mum on is that the 10 billion loan was from UBA.

just an interesting coincidence that he also bought a building in which that uba is a tenant

could turn out to be a variant of the shenanigans between otedola and ovia

otedola 'bought' stallion house on ajose adeogun with a zenith bank loan, defaulted, and now the building is the property of zenith bank. another step in ovia's bid to tur ajose adeogun to zenith boulevard

oyb:

and guess who resides on the ground floor

UBA

hercules07:

Knowall, that building is worth far far more than 4 Billion naira, heck the land on which it sits is prime land and probably goes for around that figure, I have been in that building and what they need to do to make it top notch is not much, it was done up some years ago by costain,so it is in good shape.

Akainzo:

That same building was renovated for a princely sum of N3 Billion by Costain West Africa. The building was only handed over back to Nitel in 2007.

So in essence, they sold a building which was just recently renovated for 3B at a cost of 4B!!!! Note that, Nitel would not have reacted to the BPE/COI activities as it had already as far back as 2007 gotten a FGN (and Presidency) permission to remove the NECOM house from the list of properties to be sold. This was based on the SAT-3 (Nigeria's internet landing site) that was housed in this building. Thus Nitel had no reason to belief that anybody would still go ahead and purportedly sell the building.

37 Floors of prime estate is definitely no joke. That building is a landmark. It serves the same purpose as the Twin Towers in New York, it is a Lagos icon.

enyojo:

Ofoz, Have removed my picture from NL because of you.
You are too young for wt dreams.

kalokalo:

This is an ignorant statement! A property is only worth what a willing buyer is ready to pay for it ! Nigerians have been saying that Nitel is worth "billions of dollars" and yet FG has failed many times to find people willing to pay "billions of dollars" for Nitel. What does that tell you? They said that building is "worth" 75 billion. Did the market determine that price? Is that what a willing buyer would agree to pay?

Lest we forget, this property was advertized in various national dailies for sale and bids received. Did someone offer a higher price for this property and did not get it? Was it not Transcorp that bid 100 million Naira for the same property? If Toyota says its cars are worth the Ferrari prices and starts to sell their cars as such, it wouldn't take long for the market to teach them a lesson by forcing them to close shop.

That property got the price that someone was willing to pay for it. It is not worth anything more! If it was, why did someione not offer a higher price?
You sell a property and now compalin FOUR years later that it did not follow due process. Nonsense

adconline:

[b]I may be the first to hold this position but N4.5bn is not a bad price for that building.

Let us analyze it together:

1. I was privy to the price of a piece of land and building (a four corner piece) bought on Tinubu Street behind Post Office in 2008. The building on it was later demolished. I worked in the bank that finance the purchase and the property was sold for N1.5bn. From the valuation, the land, judging from the location was valued at N1.2bn and the structure itself (already carcass) was valued at N300m. That land is about the same size as the one housing NECOM House on Marina. A property on Marina would value higher than Tinubu Street so we can put the price of the NECOM land to N2bn.

2. We are left with N2.5bn for the structure and finishes. Let us assume an average of N100m for all floors, then we come to N3.7bn for the structure. Now factoring-in depreciation of finishes and fittings you can beat that down to a possible N2.5bn.

3. There are two common basis of valuation. The Open Market Malue (OMV) and the Forced Sale Value (FSV). The FSV is the least value for which a willing seller is ready to take for the building in an emergency or a compelling situation necessitating a sale.

From the above the building could have been valued for say OMV of N6bn and FSV of N4.5bn. Usually for sales like the NECOM House, a government property, it will be released at the FSV.

So, from the above, it is very possible that the NECOM building was sold fairly for N4.5bn. Let us face the facts and leave sentiment[/b]

Thoughtful and analytical. Succinctly cleared the air!

Jarus:

As the asset accountant of my company, I deal with property valuation from time to time and this valuation appears fair value for sale purpose.

First, my company's asset around that house, has its land, of about same size with this NECON housr, valued at 600m in Dec last year. Given the fact that that structure is an old one, 4 billion is a fair price.

Also, in sale of asset by auction,the price should not be compared with the market value of that asset. The auctioning entity would normally give allowance for the buyer to make gains too. Consideration will also be given to the fact that he will spend additional costs to bring the property to fitting shape.

So comparing with market worth of the asset is not right.

1. Accountants are not more knowledgeable regarding structures and infrastructures like Professionals in this industry. The reason is simple. You have just compared a building around the NECOM house to it saying that building is about the same size.
In construction industry, we don't value based on size just as you don't marry base on the size of the Lady But for many other more important factors like her background (Building foundation), Character (Building integrity), Intelligence (Quality of Reinforcements/Concrete used) etc.
Lawyers and Accountants CAN'T determine these. That is why they often fail when they deviate from their callings to construction. Imagine a Lawyer who claims to know too much being a Moderator of Properties Section of nairaland! He can argue with the best of Engineers!! Most often he wins the argument but looses the truth.

2. Secondly, you didnt see this:

Akainzo:

That same building was renovated for a princely sum of N3 Billion by Costain West Africa. The building was only handed over back to Nitel in 2007.

So in essence, they sold a building which was just recently renovated for 3B at a cost of 4B!!!! Note that, Nitel would not have reacted to the BPE/COI activities as it had already as far back as 2007 gotten a FGN (and Presidency) permission to remove the NECOM house from the list of properties to be sold. This was based on the SAT-3 (Nigeria's internet landing site) that was housed in this building. Thus Nitel had no reason to belief that anybody would still go ahead and purportedly sell the building.

37 Floors of prime estate is definitely no joke. That building is a landmark. It serves the same purpose as the Twin Towers in New York, it is a Lagos icon.

X-factoria:

On the bolded: Where is your source

enyojo:

SAW THIS FROM COSTAIN WEBSITE-
http://www.costainwa.com/our-business/civil-engineering-and-construction

yemivictor:

Bros, why would government be forced to sell that building at all! The operative word being "forced". Is the government cash-strapped?

Secondly, it would be a gross mistake to compare the building (a run down) in your narrative to the necom house. The difference is clear on all levels i.e land position & accessibility, building/structure, number of floors of the building. e.t.c.

Lastly, what did government plan to do with sat-3 after the sale of the property housing it?

enyojo:

^^ Then how do u place Julius Berger (JBN) that usually quotes 3 or 4 times the quotations of all other Bidders combined?
And they usually get the contract as prefered Bidder.
What will you say if JBN quotes a job for N15B for a job that CCECC, CGC and CCC will all quote a combine total of N4.5B?
Will you say the 'actual' worth is N200M or thereabout?
For all we know, if a Building was renovated for N3B, it is cruel and devilish to sell it for even N6B

enyojo:

^^ No be me call dat moni so d burden is not on me to clarify it.

X-factoria:

Then, stop defending/saying what you don't know!

enyojo:

^^ Then how do u place Julius Berger (JBN) that usually quotes 3 or 4 times the quotations of all other Bidders combined?
And they usually get the contract as prefered Bidder.
What will you say if JBN quotes a job for N15B for a job that CCECC, CGC and CCC will all quote a combine total of N4.5B?
Will you say the 'actual' worth is N200M or thereabout?
For all we know, if a Building was renovated for N3B, it is cruel and devilish to sell it for even N6B

enyojo:

[s][/s]

Where did I defend what i don't know?
Have I been defending that costain spent N3B on NECOM house or that NECOM house was grossly undervalued?
I simply helped d guy post a link I saw and u woke up frm your sleep to attack the link.

KnowAll:

[size=16pt]Stuuupid Nigerians would absorb and accept any lie hook, line and sinker,  a building is worthN70 Billion and you want someone to believe that. Do you people know how much N70 Billion is to start with, we are talking of £210 million Pounds or $280 million Dollars. (how much be correct building in downtown London or NYC sef)

“If you get that kind money you go spend am on that wreck” ? Let us use our brains, the proponents of this fallacy even went as far insulting our intelligence, insisting and telling us UBA funded the whole transaction, UBA whose share value is less than N10.00 which equals to $0.06 dollar per share or £0.04 pounds per share. Our Banks have ‘kaput’ long time don’t let anyone deceive you people, “make UBA fund their own survival first”.[/size]

KnowAll:

[size=16pt]Stuuupid Nigerians would absorb and accept any lie hook, line and sinker, a building is worthN70 Billion and you want someone to believe that. Do you people know how much N70 Billion is to start with, we are talking of £210 million Pounds or $280 million Dollars. (how much be correct building in downtown London or NYC sef)

“If you get that kind money you go spend am on that wreck” ? Let us use our brains, the proponents of this fallacy even went as far insulting our intelligence, insisting and telling us UBA funded the whole transaction, UBA whose share value is less than N10.00 which equals to $0.06 dollar per share or £0.04 pounds per share. Our Banks have ‘kaput’ long time don’t let anyone deceive you people, “make UBA fund their own survival first”.[/size]

X-factoria:

You should rather ask why did the government appoint a Liquidator?? Usually, when a liquidator is appointed, it is a dire situation and the Liquidator will do his work within the shortest time possible so he can earn his fees and move on. So the word "Forced" is relevant.

Guy, I studied Civil Engineering so I have a good appreciation of cost of putting up structures as well as valuation of any civil engineering work. I also visit that building often and know it like the back of my hand because my stockbroker - Resort Securities occupies the 10th floor. You don't do costing with emotions. Check out my analysis again. Do you honestly think that the average cost of a floor would be more than N100m? N100m is no small money o!