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Falomo Shopping Centre Contractor speaks out on Ambode’s cancellation of project

Ambode revoked the contract on Wednesday, August 19, 2015, saying that it was grossly detrimental to the interests of the people of the state.

  • Published:

The developer of the Falomo Shopping Centre in Ikoyi, Lagos State, Afriland Properties has faulted Governor Akinwunmi Ambode  for cancelling the project.

Governor Akinwunmi Ambode play

Governor Akinwunmi Ambode

(Daily Post)

 

Ambode revoked the contract on Wednesday, August 19, 2015, saying that it was grossly detrimental to the interests of the people of the state.

Governor Akinwunmi Ambode play

Governor Akinwunmi Ambode

(Champion News)

 

The contractor, via a statement released by Managing Director/CEO, Uzo Oshogwe, however denied any wrongdoing including claims that it had paid N50 million for the entire 50-year lease.

The statement reads:

“The management of Afriland Properties Plc notes with concern, recent reports relating to its transaction to redesign and redevelop the iconic Falomo Shopping Centre in Lagos.”

“These unverified reports have implied that, the contract with the Lagos State Development and Property Corporation (LSDPC) was terminated on the grounds that the concession terms are “grossly detrimental” to Lagos State and its residents.  The reports also claim that Afriland Properties Plc only made a payment of N50 million for a 50-year lease of the government-owned land.”

“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 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.”

“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.”

“Afriland paid N50m (fifty million naira) to LSDPC as an expression of interest in the redevelopment project. Afriland is obliged to fund the entirety of the development costs which is projected to exceed N30 billion without recourse to the Nigerian taxpayer.”

 “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.”

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