PROPERTY NEWS

Mortgage lending outfit, Messrs. Jubilee-Life Savings and Loans Limited, has disclosed that finishing touches are being put on three out of its seven real estate development schemes that are dotting three states and Abuja, the Federal Capital Territory (FCT).

At the Lagos-based primary mortgage institution’s (PMI) stock-taking forum held a week ago, officials added that while two estates had been completed, work on the other two were about to commence.

"The mortgage sub-sector faced a lot of challenges in the year 2008/09 with low customer patronage, limited access to retail finance and huge fluctuation in the price of building materials," lamented company chairman, Mr. Felix Ohiwere, at the Annual General Meeting penultimate Thursday.

Listing the project locations to include Lagos, Ogun and Oyo states as well as the FCT, he expressed delight over the fact that the two phases at "Noah’s Pavilion" in Mowe in Ogun State had been completed and subscribers had taken possession of the 200 bungalows.

Similarly, he added, the process of handing over possession to subscribers to 60 units in the 200-flat "King’s Court" in Shasha in Lagos was on course. A three-bedroom flat is delivered ensuite in a block (of four flats).

While the first phase at Noah’s Pavilion featured 98 units, 67 were built under the second phase. The two-bedroom semi-detached bungalow sold for N3.2 million, the three-bedroom semi-detached bungalow went for N4.8 million and the three-bedroom detached bungalow for N5.2 million. The estate was financed by the Estate Development Loan (EDL) under the National Housing Fund (NHF) window mid-wifed by the Federal Mortgage Bank of Nigeria (FMBN).

According to Managing Director, Mr. Wale Osisanya, approval for "Goshen Estate" at Oluyole in Ibadan, Oyo State, had been obtained and work would soon commence. The scheme comprises 78 flats.

Also at "Shalom Royal" in Ibafo, Ogun State, he added, work would start this month on 150 units of three-bedroom ensuite detached bungalows (with boys’ quarters) and four-bedroom townhouses.

Two estates in Abuja - "Jubilee Apartment" (Life Camp) and "His Grace Pavilion" (Wumbai) - are nearing completion. Jubilee Apartment comprises a block (of three-bedroom ensuite luxury 12 flats) that is presently being roofed. Seven of the flats were sold for N16 million each - but the value has risen to the current price of N22 million. The building will be roofed this week.

Fifty terrace duplexes are yet to be built at His Grace Pavilion, while subscribers to some of the bungalows have either moved in or taken up construction work to build to their taste in the 250-unit estate.

Lastly, one of the two blocks of duplex units at "Dominium Cottage" in Kongi, Ibadan, Oyo State, was roofed last week, disclosed Osisanya, adding that casting work was ongoing on the other block.

The Jubilee-Life MD noted that the firm would in a couple of months’ time open a new branch office in Port Harcourt, Rivers State to add to the already existing ones at Allen Avenue in Ikeja, Ebutte Metta and Marina (in Lagos) as well as Abuja (FCT) and Ibadan (Oyo State). He added that another branch would later in the year spring up at the Redeemed Camp Ground at Ibafo in Ogun State.

He disclosed that Jubilee-Life recently signed a deal with an unidentified foreign investors "to bring in funds at a very cheap rate"; apparently to enable further expansion in its project capacity.

He said, "Our other sources of funding include savings and fixed deposits as well as collaboration with local investors."

Osisanya called for the creation of mortgage-backed assets by practitioners so that they can acquire bonds from the stock market. "Until the mortgage on the property expires, the bond will not be paid back," he said.

Ohiwerei told shareholders that the company needs a lot of capital to increase its level of activity, saying that the directors would prefer to utilise their funds rather than to go and borrow elsewhere. He urged them to use their dividend as a deposit against shares.

"This will earn you interest. Besides, rather than giving it to another bank to use, your bank will use it and grow," he explained, saying that the firm’s dividend for the financial year was 35 kobo on every N1 share.

"This is very impressive," he said, pointing out that shareholders should expect even better value for their shares in the future.