The Lagos State Government at the weekend signed over N10 billion Memorandum of Understanding, MOU, with Brains and Hammers Limited to develop 618 housing units in Iganmu area Lagos with the estate christened ‘Jubilee Estate.’
The MOU will see the Lagos State Government providing 14 hectares of land for the project while brains and Hammers would provide the financial expertise and develop the estate.
Speaking at the signing of the MOU at the State Government Secretariat, Alausa in Ikeja, Lagos, Southwest Nigeria, Commissioner for Housing, Prince Gbolahan Lawal said following the State Executive Council’s approval on sustainable affordable housing delivery through the Public-Private Partnership, PPP, model, the state was poised for the delivery of housing units through private estate developers.
According to him, the housing deficit in Lagos stood at three million and that to bridge the gap, about 200,000 housing units must be delivered annually in the next five years, saying that government alone could not deliver the required housing units, hence the need to inject private capital into the housing delivery.
Lawal said Brains and Hammers was partnering with the state government to develop 618 housing units on government land in Iganmu site under the PPP model, adding that since the project coincided with the celebration of Lagos at 50, it is christened ‘Jubilee Estate.
“Jubilee Estate will be developed on 14 hectares of land in the Iganmu area and will encompass a total of 618 housing units made up of 96 two-bedroom flats; 414 three-bedroom flats and 108 four-bedroom terraced houses. The development will also have commercial spaces, recreational areas, sporting facilities; its own water sewage treatment plant, power generation plant and landscaped areas.
“The project is designed to drive urban regeneration in the area and will result in a rise in property values while it would change the look and feel of the area. Over the duration of the project, it will serve to generate employment to residents of the area and will result in the up-skilling of workers,” he said.
The commissioner said the government stood to derive significant Internally Generated Revenue, IGR, through the taxes that would accrue from the sale of housing units and would benefit from Land Use Charge and other statutory payments for perpetuity.
Lawal disclosed that the project would create 3,590 direct jobs and 7,000 indirect jobs for Lagosians in the informal sector, adding that the investors was committing over N10 billion to the project.
Chief Operating Officer, Brains and Hammers Limited, Ibrahim Wushishi said the company had lots of housing projects, one of which was the ongoing development of 2,000 housing units, adding that the Jubilee Estate would provide direct and indirect jobs for people in the informal sector.
He said the 618 housing units would be delivered in three phases, but noted that the challenges in the area were that of its terrain, waterlog and swampy nature.
Managing Director, IBILE Holdings Limited, Abiodun Amokomowo said the organisation would handle the commercial aspect of the project, such as getting buyers for the housing scheme and ensured that the scheme was affordable for the masses.