Afriland Properties Plc has faulted the
Lagos State Government’s claim that it paid N50m for a 50-year lease of
Falomo Shopping Centre in the Ikoyi area of the state.
The firm, which was the concessionaire
of the property, said the contract was negotiated transparently in
accordance with best practices, adding that the transaction was not
detrimental to the people of Lagos State as claimed by the government.
Afriland,
in a statement on Thursday, explained that the Lagos State Development
Property Corporation, acting on behalf of the Lagos State Government,
established a Special Purpose Vehicle, SPV, which was jointly owned by
the parties for the purpose of developing the Falomo project.
The statement said, “Under the terms of
the agreement, the SPV ─ Falomo Shopping Centre Development Company Ltd.
─ was granted a concession to develop, build, operate and maintain the
project on a build, operate and transfer basis.
“Afriland paid N50m to the LSDPC as an expression of interest in the redevelopment project.
“The LSPDC will receive a 35 per cent
interest in the SPV for its land contribution and through this
significant equity holding, will continue to receive significant ongoing
value.
“Afriland is obliged to fund the
entirety of the development costs which is projected to exceed N30bn
without recourse to taxpayers.
“Furthermore, all value to be derived
from the creation of this world-class commercial venture will be held
in, and enjoyed by Lagos State and its residents. The development will
ultimately revert to the state upon expiration of the lease.”
The firm said it had always upheld the
values of integrity and excellence, adding that it had the utmost
respect for the dictates of the law.
“As a significant investor in Nigeria
and one which is committed to ensuring value creation within the
country, we will underline the importance of creating a business
environment that is based on transparency, contractual certainty and
social partnership.
“The information against us will do
little to promote the national interest or create the business
environment our country needs,” the firm added.
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