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FHA sells Abeokuta estate for N1.66bn

By Yinka Kolawole
The Federal Housing Authority (FHA) has sold its housing estate at Obada Oko in Abeokuta, Ogun State to a real estate firm, Provincial and City Properties Limited, for N1.66 billion, about 28 years after construction commenced at the site.

The estate occupying 86.14 hectares of land comprises 322 housing units, made up of 50 three_bedroom bungalows (Type A), 71 three_bedroom bungalows (Type B), 161 four_bedroom bungalows and 40 four_bedroom duplexes with associated infrastructure.

Under the agreement, FHA is to hand over vacant possession of the estate to the buyer within 45 days of signing the pact, while the property firm, which is registered in Nigeria and the United Kingdom, is to pay N1.2 billion to FHA within 30 working days from the date of signing of the agreement while the balance of N460 million would be paid within 60 working days of physical takeover of the estate.

The firm is also to develop the remaining portions of the estate subject to the approval of the relevant town planning authorities, as well as maintain the estate and its environment in good sanitary and tenable condition.
Construction of the estate started in 1982, during the Shagari administration, but work was suspended two years later following the overthrow of the government, and having obtained a loan from the Federal Mortgage Bank of Nigeria (FMBN) in 2004, FHA returned to site and completed the estate in 2006.

Managing Director, FHA, Mr. Terver Gemade, remarked at the agreement signing ceremony that the event was a milestone in the history of FHA, noting that though the estate was being taken over by a single buyer, the houses would eventually end up with Nigerians who the Authority was set up to serve.

The FHA boss declared that with the sale of the estate, FHA had delivered 1,186 housing units within eight months adding that the delivery of additional 12, 000 units through various partnerships was well underway. He promised that FHA would deliver on its commitment to deliver 106,000 housing units by the year 2013.

In his own remarks, Chief Executive, Provincial and City Properties, Dr. Yemi Adegoke, noted that the process leading to the agreement commenced in 2007 with his team working with four chief executives of the FHA in quick succession. He said that in addition to the purchase price of N1.66 billion, his company would commit additional N2.7 billion to the estate.


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