Brains & Hammers raises N8bn Sukuk funding from private capital market

The housing market in Nigeria received a big boost recently as Brains and Hammers Limited, a foremost infrastructure, hospitality, commercial and residential real estate company in Nigeria raised N8 billion Sukuk funding from private capital market for investment.

The company, in a statement in Lagos, signed by Onome Okwah, head, strategic communication, explained that the capital raise was made possible by a consortium of lenders in the private sector.

This investment, which is backed by ARM and Fidelity Bank, is a reflection of investor-confidence in Brains and Hammers’ vision of providing affordable housing for Nigerians.

It also raises hope of increased home-ownership level in the Nigeria as it solves one of the big problems in the real estate sector, which is lack of credit and high interest rate where available. The company is known for high volume of housing delivery, meaning that more Nigerians will be taken off the housing market by this investment.

The 4,500-unit Bungalow City in Abuja is a case in point. The phase 1 of the project, which is already nearing completion in less than one year after construction started, will be delivering 1, 2, and 3-bedroom housing units.

This means that the project will be addressing the housing needs of mostly first time home buyers and people in the mid-low income bracket who are largely underserved, more so as the houses are said to be wallet-friendly for Nigerians across the country.

The company estimates that the project will create over 1,000 direct, indirect, and ancillary jobs during construction and upon its completion, thereby creating a large-scale economic impact beyond the provision of affordable housing and infrastructure.

The Sukuk funding will put the company on course to deliver on its aggressive growth plan in affordable housing across the country. The investment represents a laudable landmark for Brains and Hammers and serves as a springboard for the delivery of Bungalow City project.

“I am delighted with the Sukuk investment,” Sheidu Adebola, chairman, Brains and Hammers, said, noting that it represents a vote of confidence in the company.

“With phase 1 of the Bungalow City project nearing completion in less than one year after construction started, the 1, 2, and 3-bedroom housing units are proof that we are not just at the forefront of providing affordable housing development in Nigeria, but building infrastructures as well,” he said.

According to Adebola, the ongoing construction of a 3.8km access road and over 3-km internal road network within phase 1 of the project is a pointer to that fact.

The infrastructural development is supported by recreational facilities including schools, banks, a business hub, and a shopping mall, Adebola said, highlighting company’s commitment to creating a healthy Live, Work & Play environment around their mega projects across the country.

Brains and Hammers’ bold move, in this instance, has been enhanced by the confidence reposed in the company by the consortium of investors who are also committed to reducing the housing deficit in Nigeria.

Backed by over 14-year of insight and expertise, the company has become a partner of choice for affordable, premium, and luxury houses for the public and private sectors and Nigerians at home and in the diaspora.

Brains and Hammers’ hospitality, residential, commercial, and infrastructural portfolio covers thousands of acres of land in urban, suburban, and satellite communities in Abuja, Kano and Lagos in Nigeria.