By Yinka Kolawole

A Nigerian real estate development firm, Afro-Asia Shelters International, a subsidiary of Chicason Group has signed a real estate development funding agreement worth N44 billion with Shelter Afrique, Africa’s premier real estate development funding institution.

The Memorandum of Understanding (MoU) was signed last week in Abuja during the 35th Annual General Meeting and Symposium of Shelter Afrique, a pan-African finance institution created to exclusively support the development of African real estate and housing sector.

The agreement is for the funding of the phase one of the 3,000 housing-unit Rock City 2, Jibi in the Greater Abuja area. The whole projected is estimated to cost N44 billion. The phase one will however cost about N5.2 billion with Shelter Afrique contributing 59 percent while Chicason Group will contribute 41 percent of the development cost. The Rock City 2 project is coming on the heels of a N110 billion Rock City 1 in Lugbe currently under construction by Rock of Ages properties Ltd, another subsidiary of Chicason Group.

At the signing ceremony, Managing Director of Shelter Afrique, James Mugerwa, noted that the organisation remains committed to the shared vision of its founding fathers which is to tackle the ever growing housing deficit in Africa. He said, “The objective of providing affordable and quality housing to all is at the very heart of our mandate – it is the core of our operations. I am happy to inform you that as we continue in our quest to deliver on that objective, we have created new systems and drafted and put into operation a new strategy.”

In his remarks, Chief Operating Officer of Rock of Ages Properties Limited, Mr. Francis Onwuemele, who signed on behalf of Chicason Group, noted that Shelter Afrique agreed to provide the required funds at a friendly rate to his organisation, in recognition of its contributions to the development of the housing sector in Nigeria. According to him, Chicason Group has acquired 443 hectares of land at Lugbe, Abuja from the Federal Government for the expansion of its mass housing scheme.

He disclosed that the funds coming from Shelter Afrique will go a long way in helping the organisation to fast-track the partnership it has with the Trade Union Congress of Nigeria (TUC) to provide affordable housing to Nigeria workers.