Fidelity bank banner Bayelsa State banner
Core investor faults Ambode over termination of Falomo Shopping Centre contract

By News Express on 20/08/2015

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,401


The management of Afriland Properties Plc, core investor in the redesign and redevelopment of the iconic Falomo Shopping Centre in Lagos, has faulted Governor Akinwunmi Ambode over his termination of the contract.

The company in a statement signed by its MD/CEO, Uzo Oshogwe, dismissed claims that the contract was in any way detrimental to the interests of Lagos and its residents. It explained that, contrary to the claims attributed to Governor Ambode yesterday in media reports, the N50 million which Afriland paid for the concession was not for a 50-year lease of the property but for expression of interest.

“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,” Mr. Oshogwe said in the statement issued this afternoon in Lagos. “We are strongly committed to creating a world class project, which will act as an economic magnet for central Lagos, creating opportunities for Lagosians and which crucially 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,” he stated.

According to the statement, “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 developing the Falomo project.

“Under the terms of the agreement, the SPV – Falomo Shopping Centre Development Company Ltd – was granted a concession to, amongst other things, develop, build, operate and maintain the Project on a Build, Operate and Transfer (BOT) basis.

“Afriland paid N50m (fifty million naira) to LSDPC as an expression of interest in the redevelopment project.

“The LSPDC will receive a 35% 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 Nigerian 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 Memorandum of Understanding (MoU) and Joint Venture Agreement that were signed and executed by the aforementioned parties.

“Furthermore, all value to be derived from the creation of this world-class commercial venture will be held in, and enjoyed by Lagos State and its residents. The development will ultimately revert to the state upon expiration of the lease.

“Apart from delivering an environment that befits the city and is consistent with the government’s goal of an aesthetically pleasing skyline, the Falomo site will be home to thriving businesses that will contribute significantly to the Internally Generated Revenue (IGR) of the state.

“As an organisation, Afriland Properties Plc and its affiliated companies have always upheld the values of integrity and excellence. We have nothing but the utmost respect for the dictates of the law and till date, have acted accordingly. As such, we are unequivocal in our belief that our sincere intentions for this landmark project will be validated in due course.

“As a significant investor in Nigeria and one which is committed to ensuring value creation within the country, we would underline the importance of creating a business environment that is based on transparency, contractual certainty and social partnership. At a time when Nigeria urgently needs to diversify its economy and attract broad based foreign direct investment, the rumours we have identified do little to promote the National interest or create the business environment our country needs.”

•Photo shows Governor Ambode.

Source News Express

Posted 20/08/2015 5:47:32 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
PDP chieftain kidnapped

2015: Dakuku Peterside overruns Wike, Obuah’s strongholds •PDP...

Government’s mistakes that worsened Boko Haram menace —Dokubo...

U.S. Presidential Race: Republican rivals gang up to...

Kano stops operation of luxury buses, imposes heavy...

3 suicide bombers killed in Maiduguri

411 Boko Haram fighters killed in Borno air...

We will conclude board appointments this month —...

Nigerian Army discovers new Boko Haram base

Army nabs 2 key Boko Haram members •Challenges...

2015: Udom Emmanuel finally declares for Akwa Ibom...

NCAA bans unauthorised launching of drones in Nigerian...

 

Latest News BREAKING NEWS: INEC declares Osun governorship election inconclusive Osun governorship election: All the results while waiting for INEC's official declaration 2019: Screening Panel to decide fate of Atiku, Saraki, Tambuwal, others Certificate Saga: Uncertainty, fears grip Buhari’s ministers, aides Ambode’s fate hangs in the balance as party insists on primary Osun Guber: PDP beats Aregbesola in Ijeshaland Missing General: Army recovers bus door Ban of Ohanaeze causes stir APC, PDP devise new method on vote-buying Activities pick up in Delta State IDP Camp; Asaba Camp records first birth Nigeria Air fiasco: Foreign investors, international community won’t take Nigeria serious again — Peter Obi Lagos sues for peace over hijab controversy

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (396,239 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (376,655 views) Shameless Genevieve Nnaji exposes breasts in public (308,368 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (250,531 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (232,229 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (221,606 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (199,998 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (181,596 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (165,649 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (163,350 views) Lagos plane crash: Journalist releases victims’ names (158,114 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (146,868 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (63) Business & Economy (3,622) Business Verdict (52) Columnists (933) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (547) Features (652) Global Business Monitor (301) International (2,426) Interview (165) Live Commentary (28) Love Matters (144) News (39,071) Opinion (1,110) Pidgin (11) Politics (6,705) Religion (872) Sports (1,701) Stock Watch (34) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

I am Imo State's New Governor -- Okorocha's son-in-law Uche Nwosu...

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement