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Housing: Developers float finance outfit

Yinka Kolawole
Estate developers under the aegis of Real Estate Development Association of Nigeria (REDAN) have set up a finance outfit as part of efforts to help boost housing finance in the country.

Vice_Chairman, REDAN, South_West Zone Mr. Akintoye Adeoye, disclosed that the outfit known as REDAN Capital Limited was established to counter the high interest rates currently being charged by banks on real estate development and mitigate its effects on developers by helping them to source for cheaper funds for housing development.

Adeoye who was speaking during the re-certification of members in the zone at the University of Lagos recently, remarked that the new institution will source for funds locally and internationally from financial institutions such as the Federal Mortgage Bank of Nigeria (FMBN), World Bank and other related sources, to tackle the dearth of funding in the sector.

He noted that in countries where similar institutions had been established, it has led to a boost in real estate development, urging members of the association to subscribe to the shares of REDAN Capital so as to increase its capacity to lend to them.

According to Adeoye, the requirements for accessing funds from REDAN Capital include: summary of the project, detailed company profile including preambles on the company, particulars of the directors, management team and their resumes, details of the previous projects executed, photocopy of certificate of incorporation, three years audited annual accounts, valid current tax clearance and registered title on the land for the project.

Others requirements are: approved building and site layout plans, company’s resolution to source for the funding signed by the Board’s Chairman and the Company’s Secretary, valuation report, feasibility and viability reports, post_ construction/facility management programme.

The requirements for accessing funds from REDAN Capital include: summary of the project, detailed company profile including preambles on the company, particulars of the directors, management team and their resumes, details of the previous projects executed, photocopy of certificate of incorporation, three years audited annual accounts, valid current tax clearance and registered title on the land for the project.

Others requirements are: approved building and site layout plans, company’s resolution to source for the funding signed by the Board’s Chairman and the Company’s Secretary, valuation report, feasibility and viability reports, post_ construction/facility management programme.

He said that re-certification and accreditation of developers became imperative to sort out genuine developers from fake ones, with a view to preventing charlatans from dragging the name of the association in the mud.

“The importance of the re-certification is to separate genuine developers from fake ones who, on several occasions, have paraded themselves as members of REDAN and fraudulently obtained money from unsuspecting members of the public. This scenario, if left unchecked, would soon tarnish the image of the association,” he said.

He remarked that other benefits of REDAN membership include: opportunity to access estate development loan (EDL) from FMBN, and to sell housing units to National Housing Fund (NHF) contributors under the NHF mortgage loan scheme; opportunity to access finance materials and equipment at special discounted rates for members; access to information on real estate development; direct intervention in members’ problems; access to project preparation consultancy, advisory and support services, among others.

Adeoye applauded the recent move by FMBN to increase the disbursable NHF loan to an individual from the previous N5 million to N15 million and noted that the periodical stakeholders’ workshops held across the country by is aimed at arousing governments at all levels to their responsibilities of shouldering affordable housing schemes for the populace.


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