…To convert Unity House to mixed-use apartments
Wemabod Limited, a Nigerian real estate solutions provider, founded 62 years ago, has begun the process to raise N50 billion through bond issuance to finance construction of commercial and residential developments in Lagos. The management and its partners completed the signing last week.
The N50 billion which will be raised in series is starting with N4 billion bond issuance to finance the construction of mixed-use development of Unity House in Lagos that will include office space and residential apartments. The company created Wemabod Financing SPV Limited (“WFSL”) to execute the earmarked real estate and property development projects. This is to ensure transparency. The SPV is comprised of independent trustees.
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Speaking at the signing ceremony in Lagos, Yemi Ejidiran, Chief Executive Officer of Wemabod said the first series of the funds would be used to support the development of Unity House at 37 Marina from pure commercial rental to a mixed-use property.
The Unity House is a 21 storey building and the new construction according to Ejidiran is one of the kinds in Central Business District anywhere in Nigeria. He said 15 floors of the building will be converted to residential floors and it has been designed by consultants to accommodate one-bedroom and two- bedroom suits.
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In addition to the re-development of the Unity House, the other funds will also be used for the development of a mixed development property that will house a mall and other recreational facilities in Ikorodu and other parts of Lagos.
He said the idea behind the project and more to come is to promote residential development in the central business district of Lagos State which will reduce commuting time for workers.
Ejidiran said Wemabod is “using this as a springboard to commence the regeneration of central business districts. According to him, ”this project is very critical at this point in the nation’s life knowing well the policies of the Federal Government which has affected where people work and live.
“It is critical for investors to take advantage of the opportunity that this development will bring. The benefit is that people can stay close to where they work”, he said.
Olu Abayomi Sanya, Managing Director of Goldblanc Management Associates, GMA, financial adviser to Wemabod company and the leading issuing house explained that they are giving a range of between 17.5 percent and 18.5 percent to the first of the series bond. “This was done because the FG three-year bond is 16.5 percent. They added 150 basis point above FG bond”.
On the importance of the bond to construction, Sanya said this is what realtors should be doing because construction financing is always a difficult thing to do.
While commending the initiative of Wemabod to convert some buildings in Central Business District to mixed-use, he said some people want to live closer to where they work. “The direction Wemabod is going is the direction to go as it is done in major cities. All the dilapidated structures in Marina could be reconstructed and put back to the market for people to live and work”, he said.
