GMH Luxury signs N5bn commercial paper
GodMade Homes (GMH) Luxury, a housing solutions and real estate developer has signed an N5 billion commercial paper listed on the Financial Market Dealers Quotation (FMDQ) Securities Exchange.
“Basically, we have eight ongoing projects, and this N5 billion CP will come in very handy to ensure that we deliver to specification and on time. So, funds have been a major issue in the real estate finance sector. So, with this N5 billion CP in our hand, that will enable us to ensure that we are able to deliver to time and even reduce our cost overrun in the long run by having enough capital to do buck purchase of finishing materials,” Ayoolarenwaju Kuyebi, CEO, GMH Luxury, said during the signing of the N5bn CP in Lagos.
Kuyebi stated that he is optimistic that the CP will be oversubscribed and disclosed that GMH has been able to deliver over 70 housing units in the last seven years. He stated further that GMH Luxury housing projects are projects that can outlive its founder. “Am sure this will be very successful and am looking at two weeks maximum – we should be over-subscribing,” he said.
Akin Oni, STL Trustees, said the CP is secured and backed by a bank guarantee that will be produced by Keystone Bank. “As the representative of the investors on the transaction; the bank will issue in our favour. So, in case of any default, we will call on the guarantee from Keystone Bank and we’ll use it to meet the obligations to the investors”.
According to him, the CP will not be more than 270 days and might not be issued in one trench depending on how the market responds to the instrument.
Segun Akintemi, director of Qualinvest, said the CP that was arranged by Qualinvest on behalf of GMH Luxury will be successful. He said that the partnership between Qualinvest and GMH has been long-term; hence he is also optimistic that subscription would not be a problem to the CP.