A consortium of financial institutions has been assembled to provide a N6 billion mortgage facility to prospective shop owners at the new Tejuosho Shopping Complex.
The facility is being promoted by First Bank Nigeria Plc along with Lagos Building Investment Corporation (LBIC); Union Homes, a subsidiary of Union Bank Plc; GT Homes, a subsidiary of GT Bank Plc; and FBN Mortgages, a subsidiary of First Bank.
Under the scheme, a prospective buyer is expected to make a down payment of 30 percent of the cost of the shop as equity contribution, and spread the payment of the balance over a period of 5 years at an interest rate of 15 percent per annum.
The new Tejuosho market, which is being built to replace the old market that was gutted by fire about three years ago, is a Public_Private Partnership (PPP) project of the Lagos State Government in partnership with Messrs Stormberg Engineering Limited, who are the developers and concessionaire, estimated to cost over N10 billion upon completion.
It comprises 4,040 shop units of various sizes and some spaces for banking and restaurants on four levels, and expected to have facilities such as multilevel parking for over 720 cars, lifts and elevators for shoppers and cargos, fire service station, police station, eateries and food courts, central sewage system and banking halls.
Officials of the financing institutions who disclosed the mortgage deal, said that the process of purchasing the shops in the complex has been carefully set and approved by the state government to ensure fair pricing.
Executive Director, First Bank, Mr. Kehinde Lawanson, said that the final batch of the shops has been released into the market at prices ranging from N5.4 million or N600,000 per square metre, with an option for instalmental payment.
He also hinted that concessions have been granted to the former traders who, according to him, either got rebates or are allocated kee_klamp units, which are coordinated by the Lagos State Market Association and the bank.
Lawanson said a facility manager would be appointed under competitive bidding process to ensure the complex retains its good value and decent environment. “Shopping all over the world is a recreation. We intend to create a conducive environment and comfort that will make traffic of people turn to patronage,” he said.
On the progress of the project, Chairman of the concessionaire firm, Mr. Akin Abiola, assured that the complex would be completed on schedule in May 2011 and that the project has achieved about 70 per cent completion.