The Group Managing Director, Haldane McCall Plc, Dr Edward Akinlade has expressed the company’s plan to raise N250bn capital for affordable housing in Nigeria in 2025.
In a statement issued to Tribune Online on Monday, Edward said negotiation commenced already with the partners for smooth running.
He explained that they would buy whatever they built, stating that this approach has never been done.
Edward assured that more than 1200 units will be delivered in the next five years with this fundraising approach.
“We have a huge plan next year. One is the plan to raise a N250 billion bond, in tranches of N25 billion.
“We have started work on that and will be coming to the market next year. The purpose of it is to fund affordable housing.
“We have started negotiation with a number of our partners that will be off-takers for that.
“A good example is the Labour Congress, TUC, and also Lagos state government. We are in negotiation with them at the moment.
“Whatever we build, they will buy, give it to their members. This is the purpose of that bond. We want to do what has never been done before in the affordable housing market.
“Remember, for example, if you look at Lagos, I think the latest statistics show that the Lagos State government has been able to build about 13,000 new homes since 1999.
“Can you imagine the huge task ahead of us when the Lateef Jakande report then says the deficit is 16 million?
“What we are trying to do is to start and deliver about 1200 units in the next five years and that is within our current funding.
“But with the bond, we will be able to do substantially more than that. For example, we are raising N250 billion, if we divide that by 20, it’s going to cost us N20 million each -that is about 12,500 units. So you can see the staggering numbers of what we need to do, and we believe it’s going to be profitable. Those who subscribe to the bond will basically enjoy the return on investment,” he said.
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