FCMB Capital in $65m funding package for Heritage Place development

Due to a combination of factors including high cost and poor quality of most commercial real estate in the country, especially in Lagos, and the rising demand for best-in-class and energy-efficient facilities developers are rethinking their approach and also working closely with lenders and financial institutions in order to make necessary investment to meet the changing needs of the market.

In Nigeria, as a growing economy, emerging business opportunities and increasing direct investment in the economy, especially from offshore investors, drive demand for top quality office and retail accommodations.

In recent time, the country’s real estate market has seen significant efforts at providing top of the range quality facilities, and in this direction, a new addition to the office space segment that will meet current demand is the up-coming world-class and eco-friendly office complex called The Heritage Place.

Heritage Place is a multi-million naira office facility touted as Nigeria’s first green building, and FCMB Capital Markets, the investment banking subsidiary of FCMB Group plc, has acted as sole financial adviser and arranger of the $65 million structured debt finance for this project.

The advisory and structuring capabilities of FCMB Capital Markets Limited and the lending capabilities of First City Monument Bank (FCMB) Limited were put into play for the project that is sponsored by First Concept and Properties Limited, a Nigerian company led by Actis, a leading private equity real estate investor in sub-Saharan Africa.

Actis, with its positive power of capital, is leading the development consortium that includes Primrose Development Company (PDC) and Laurus Development Partners, to deliver The Heritage Place, located in Ikoyi, by the intersection between Kingsway and Lugard Roads.

The facility is just some minutes drive away from the heart of the business districts of Lagos and Victoria Islands, and also from the most vibrant social venues in the city. The building has been meticulously designed to provide up to 15,730 square meters of office accommodation, and over 13,000 square metres of parking space that will comfortably accommodate 350 cars.

It offers great efficiency and flexibility to match the internationally recognised Grade A standards for office accommodation; the iconic design, prestigious address and bar-raising specification set a new standard for Nigeria’s architectural landscape. The Heritage Place is poised to become synonymous with modern, smart and environmentally-aware business.

The idea behind the Heritage Place was borne out of an identified significant gap in quality office space in Lagos. With its 14 floors of office space, ample car parking facility, raised floors and suspended ceilings, the development will help to bridge that gap and proffer a solution to this very real challenge. Designed by award winning UK architect, Capita Symonds and ECAD, Nigeria, the Heritage Place has eight-floors of office space, each at least about 450 square meters and five-floors of on-site parking integrated into the building. It also has a reception area, meeting rooms, restaurant area, café/coffee shop, plaza, six passenger lifts, one goods lift etc.

CHUKA UROKO