Shelter Afrique (SAf), a Pan-African housing finance and development agency, has signed an agreement with a real estate development company, CMB Building Maintenance and Investment Company Limited.
The agreement, signed at the headquarters of the financial institution in Kenya, will provide a loan of N3.3 billion to the firms.
SAF’s Managing Director Mr. James Mugerwa and Managing Director of CMB, Mr Kelechukwu Mbagwu, signed for their firms.
The cash is for the construction of Pearl Nuga Court Estate in Lagos, and also provide mortgage for off-takers that may want to key into the scheme.
According to Mbagwu, the deal represents a step in the right direction as it fits into the vision of the government and other stakeholders to provide affordable housing for Nigerians.
While agreeing that the private sector has the most strategic role to play in ensuring that housing deficit is reduced to its barest minimum, Mbagwu said the fundamentals of the real estate sector remains strong and healthy despite the turbulent economic terrain of last year.
He urged the Federal Government to support the sector’s growth by creating and enforcing policies and laws that ensure that private sector development thrives through financial capitalisations and easily accessible construction finance.
Mbagwu canvassed the government’s support.
The Minister of Power, Works and Housing, Mr.Babatunde Fashola, in his inaugural ministerial briefing assured that the Federal Government will lead an intervention to increase housing supply by not only undertaking construction of public housing, but also by formulating policies that will invariably lead to private sector participation and ownership to reduce the country’s housing deficit.
Stakeholders have since lauded this initiative, as they see in it a further boost to tackle the housing shortage that is being faced in the country, especially when it is considered that the country’s proportion of urban dwellers rose from 10.6 per cent of total population in 1953 to 19.1 per cent in 1963; 35.7 per cent in 1991 and 48.2 per cent in 2006.
Besides, the 2006 National Population Census projected the urban population in the country at 50 per cent of total population by last year, a figure expected to rise to 60 per cent by 2025. The effect of this is that up to three out of five urban dwellers live without adequate shelter and basic services.
CMB with over 12 years in real estate is receiving the support as part of the pan-African finance institution’s support of the real estate sector.
Through such strategic partnerships, the financial institution offers products and related services, which support the efficient delivery of commercial real estate and affordable housing. Shelter Afrique has over 30 years in the industry and is in partnership with 44 African governments, the African Development Bank (AfDB) and the Africa Reinsurance Company.
Source: The Nation