Breaking News

FHA partners UK firm on N453bn housing scheme

The Federal Housing Authority (FHA) and a United Kingdom based private developer, Sharp Energy Limited, have entered into a partnership arrangements to construct a housing project at Kuchkau/Auta Balaifi in Karu Local Government of Nasarawa State at a cost of N453, 774,520,000.

The project which is to comprise of 9,465 housing units with associated infrastructure and facilities is to be built executed using the modular mass housing system construction technology.

As part of the deal, FHA has already made available about 400 hectares of land as its equity contribution, to be sub_leased to the developer to the limit of the development for a term of eight years. After the expiration of the period, it shall revert back to the Authority at the expiration of such term or on completion of all sales. The project is expected to be funded by the developer either through direct contribution or through loans.

The deal gives FHA the exclusive right of post sale management of the estate, issuance of allocation papers, issuance of title documents, naming of the estate, numbering of the houses, collection of Capital Development Levies and ground rents, as well as, any other such charges that the authority may introduce from time to time.

Under the arrangement, the net profit from the sale of the housing units would be shared between the developer and the FHA, in the ratio of 80 per cent to 20 per cent respectively, provided each partner’s contribution had been fully recovered.

For effective management of the estate, the parties are to put in place sustainable facility management structures on completion of construction work, while the developer shall train FHA personnel during the construction period and two years post_construction period. Thereafter, the parties shall decide and put in place sustainable facility management on agreed terms and conditions.

The Nasarawa State government has also indicated interest in participating in the project and has been offered 15 per cent of the partnership equity subject to agreement.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.