Barely three months after delivering on the first phase of its affordable housing project, Emotan Gardens, the Governor Godwin Obaseki-led administration is upping the ante by entering into a fresh agreement for the development of high-end apartments in Benin City, the Edo state capital.
After securing necessary approvals from the State Ministry of Justice, the Edo Development and Property Agency (EDPA) will be signing a Memorandum of Understanding (MoU) with Iron Projects Limited for the handover of a property in Government Reservation Area (GRA) to the Special Purpose Vehicle (SPV) on Tuesday, March 26, 2019, to signal the beginning of the partnership.
The state government had through a partnership between EDPA and Mixta Africa commenced development of the 1400-unit affordable housing project in Upper Sokponba axis of Benin City, the first project since the overhaul of the EDPA.
Speaking on the new Memorandum of Understanding (MoU) with Iron Projects Limited, Executive Chairperson, EDPA, Isoken Omo, said that the agreement would be for the development of a high-end 18-unit apartment complex in GRA, Benin City, in continuation of the agency’s strategic plan of expanding its offerings.
According to her, “Having started development of affordable housing units, we deemed it necessary to start developing high-end Residential Apartments in the State to cater to high-value individuals who visit the state. To this end, we are, on behalf of the state government, partnering with Iron Projects Limited (IPL) for the construction of an 18-unit apartment complex located at 32 Central Road, GRA, Benin City (formerly Veterinary Clinic).”
She explained that the project is the first of its kind in the state, and “will signal the seriousness of the government’s drive to attract investment to the state from within the country and the diaspora.
“The different phases will be within GRA in Benin on a transaction-by-transaction basis. This means that after the completion and sale of the first phase, we will enter another partnership if we wish to develop more properties.”
Partners on the project, Iron Projects Limited is the property development arm of Iron Capital Partners, an investment company based in Mahe, Seychelles that has shown capacity in development of high-end residential properties.
According to Isoken, “The project will be delivered through a Joint Venture Partnership (JVP) between EDPA and IPL, where EDPA will provide the land as its equity contribution to the project and IPL will provide funding and technical expertise to deliver the projects.
“The JVP will be based on the contribution of both partners after the total cost of the project is determined from the finalised Bill of Quantities and drawings. Edo State is not putting any funds into this project.
“We are to provide land, the enabling environment, all requisite approvals and primary infrastructure where necessary. This is definitely the way of the future. Once developers are confident that their investments are safe and there are off takers to buy the properties, they will be willing to partner with Edo State. This is the second of such partnership after our work with Mixta Real Estate Plc.”