Elumelu’s Afriland Properties responds to termination of Falomo Shopping Centre concession agreement



Afriland Properties Plc has been forced to respond to a statement by the Lagos governor, Akinwunmi Ambode, in which he cancelled a concession agreement between the company and the Lagos State Development and Property Corporation (LSDPC) for the redesigning and development of the Falomo Shopping Centre.

Up till now the Lagos government has not formally communicated the termination of the agreement signed between the two parties, but the news has been so widely reported that Uzo Oshogwe, the MD/CEO of Afriland Properties Plc had to put out a statement with the company’s position.

The company expressed concern over the reports, especially because the government statement claimed that the deal was “grossly detrimental” to Lagos State and its residents, and alleged that the company only made a payment of N50 million for a 50-year lease of the government-owned land.



Oshogwe said any such suggestion of misconduct on the part of the company was simply not true. According to the company, a Special Purpose Vehicle (SPV) was established between Afriland Properties and LSDPC on behalf of the state government. The SPV, which they called the Falomo Shopping Centre Development Company, is jointly owned by the two parties and the terms of the concession was that it would develop, build, operate and maintain the Falomo project on a Build, Operate and Transfer (BOT) basis.


The statement explained that the N50 million which was widely quoted as what the company paid for the concession, was actually what they paid for expression of interest and not for the entire project. Under the agreement, the company is expected to wholly fund the entire development project – which they claim would exceed N30 billion – “without recourse to the Nigerian taxpayer.” The LSPDC/Lagos government meanwhile, 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 insisted that it 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.



“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.

“The new facility will comprise a state-of-the-art shopping mall, office complex and generous parking facilities,” the statement said.

Speaking further, the company said, “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 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.”


SOURCE
http://www.thescoopng.com/elumelus-afriland-properties-responds-to-termination-of-falomo-shopping-centre-concession-agreement/?utm_campaign=shareaholic&utm_medium=facebook&utm_source=socialnetwork

Really don't believe it.. FTC again..
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Booking that space for INTROVET whose position have taken...

Ambode...The son of Godfather

Gov ambode may not win this war. The war of indirectly insulting your predecessor. To bad for the beginning.

Since Elumelu's company is among those at the receiving end of Ambo's action, I'm expecting outrage from some sycophants that supported this move earlier

Even if its build operate and transfer,50m Is too small for a 50 year lease.

Why cant Elumelu go and develop East?
With an investment of such huge amount it makes sense.that Biafra will never actualize, because money bags like.Elumelu will frustrate it in favor of their investment outside their fatherland.

I don't even see the sense and wisdom in openly reversing your predecessor's policies, contracts and rubbishing his image and integrity especially since every negativity you dig up and throw at him soils you yourself and the same political party you share..


Lagosians love BRF and they know quiet well that he delivered and I see them questioning Ambode's moves very very soon.


This is very very Unlagosian...

Nobody can reverse your investments in your father's land. Disappointed in Elumelu

OPCNAIRALAND:
Why cant Elumelu go and develop East?
With an investment of such huge amount it makes sense.that Biafra will never actualize, because money bags like.Elumelu will frustrate it in favor of their investment outside their fatherland.

What would happen to chinese firms operating in a Nigeria without biafra?

Therein lies your response

Ah swear, I didn't read nada

Flets:


What would happen to chinese firms operating in a Nigeria without biafra?

Therein lies your response

He will never get it. . , its obvious that common sense is not that common for some folks. .. .

Elumelu like others are investors who are only considered about their money b4 other things. This guy has many investment with direct dealings with the government, he doesn't send the so call Biafra. Elumelu that went all the way to USA because he wanted to have audience with Buhari.

OPCNAIRALAND:
Why cant Elumelu go and develop East?
With an investment of such huge amount it makes sense.that Biafra will never actualize, because money bags like.Elumelu will frustrate it in favor of their investment outside their fatherland.

#50Million was for expression of intent..

cornoil:
Elumelu like others are investors who are only considered about their money b4 other things. This guy has many investment with direct dealings with the government, he doesn't send the so call Biafra. Elumelu that went all the way to USA because he wanted to have audience with Buhari.

Nope. He paid and hosted party for GMB. He has Obama's number b4 GMB. He got invited by Obama to the w/House b4 GMB. He runs Transcorp Hilton and its subsidiaries

Flets:


What would happen to chinese firms operating in a Nigeria without biafra?

Therein lies your response

The whole world in fact can not survive without you village biafrans..

aresa:
I don't even see the sense and wisdom in openly reversing your predecessor's policies, contracts and rubbishing his image and integrity especially since every negativity you dig up and thrown at him soils you yourself and the same political party you share..


Lagosians love BRF and they know quiet well that he delivered and I see them questioning Ambode's moves very very soon.


This is very very Unlagosian...

While we all agree that Fashola did extraordinarily, it cant be said that he got everything right. Yes there will be room for errors and some mistakes. Take the boath hotel thingy which was shoved off as "bad business" in the end.

The Falomo mall was a deal between LASG and Afriland. It was a way to encourage Afriland to invest in the contract hence giving then cheap land. Sometimes these lands are given free to companies willing to invest. If the government that thinks that they were short changed they have a right to cancel but you should also know that the contract cannot be really cancelled.

The most that can happen is to renegotiate the deal which will see Afriland pay some more money to the LASG and work goes on. Of course this cannot be done privately, not in this era where you have a secret meeting and the world knows what was discusses before you even leave the venue.

This is not a way to rubbish anyone but a way to make sure the state optimizes potentials and finances.

GudluckIBB:
Even if its build operate and transfer,50m Is too small for a 50 year lease.

#50Million for EXPRESSION OF INTEREST.

I have been waiting for this since I know that all Lagos contract come with heavy termination clause. This is why toll gate are there for stay. If u just see the termination clause u will know that a sensible governor will just let it be.

Long hisssssssss

Its always good to hear 2 sides of the story before commenting. Ambode should be careful of his utterances. Leaders do not talk or have their media aides talk anyhow.

Though I voted for him, Ambode appears to be on the path to perdition, if he continues to paint BRF red without taking any tangible step or performing extraordinary I forsee APC losing Lagos in 2019.
Tinubu should know that BRF performance in office strengthens ACN ability to capture other states and should desist from rubbishing him.

OPCNAIRALAND:
Why cant Elumelu go and develop East?
With an investment of such huge amount it makes sense.that Biafra will never actualize, because money bags like.Elumelu will frustrate it in favor of their investment outside their fatherland.

If the yeye past governments gave the Southeast seaport and airports, you think this will be happening?

Its pretty clear ambo wanted a piece of the pie but was rejected hence the termination

I'm on fashola's side. thank God I didn't vote Ambode

Will read it later

hmmmm

We don hear...


BAT puppet Ambode terminating projects and contracts that was not properly consummated with his boss interest by BRF.


One day, Nigerians and indeed Lagosians will see the light and know the truth.

Iranu

What do i write in this space i booked ooo?

LADY F has it!!!