By Jonah Nwokpoku

File: INSPECTION: Governor Akinwunmi Ambode of Lagos State (middle) with the Secretary to the State Government, Mr Tunji Bello (2nd right) and member, Lagos State House of Assembly, Hon. Bisi Yusuf (left) during the Governor’s inspection of Ayetoro road, Ipaja-Ayobo, yesterday.

lagos—Following Wednesday’s  revocation  by Lagos State Governor, Mr. Akinwunmi Ambode, of the concession granted by the Lagos State Development and Property Corporation, LSDPC, to Afriland Properties for the redevelopment of the Falomo Shopping Centre, Ikoyi, the management of the concessionaire, Afriland Properties Plc has denied any wrong doing, saying the award of the contract followed due process.

The firm, through its Managing Director, Uzo Oshogwe, rejected the claim that the concession terms were detrimental to Lagos state and its residents and that it only made a payment of N50 million for a 50-year lease of the government-owned land.

The statement said: “Though the authenticity of these reports is unconfirmed, Afriland strongly refutes the suggestion that it has engaged in any misconduct or that the transaction is in any way detrimental to the people and government of Lagos State.

‘’We are strongly committed to creating a world class project, which will act as an economic magnet for central Lagos, creating opportunities for Lagosians has been structured to ensure ongoing value will accrue to Lagos State and to Lagosians. The contract was negotiated transparently and in accordance with best practice.

“Afriland Properties Plc and the Lagos State Development Property Corporation, LSDPC, acting on behalf of the Lagos State government, established a Special Purpose Vehicle, SPV which is jointly owned by the parties for the specific purpose of the Falomo project. Under the terms of the agreement, the SPV- Falomo Shopping Centre Development Company Ltd  –  was granted a concession to, among other things, develop, build, operate and maintain the Project on a Build, Operate and Transfer, BOT basis.”

According to the statement, “Afriland paid N50million to LSDPC as an expression of interest in the redevelopment project. The LSPDC will receive a 35 per cent interest in the SPV for its land contribution and through this significant Equity Holding, will continue to receive significant ongoing value. ‘’Afriland is obliged to fund the entirety of the development costs which is projected to exceed N30 billion without recourse to the  taxpayer.

“The new facility will comprise a state-of-the-art shopping mall, office complex and generous parking facilities. Afriland has consistently adhered to the terms of its agreement with LSDPC, as outlined in the MoU and Joint Venture Agreement that were signed and executed by the aforementioned parties.”