Chicason Group in bullish growth strategy with N200bn investment in real estate
In what industry analysts have described as a bullish and ambitious growth strategy, Chicason Group, a wholly indigenous company, is poised to invest N200 billion in Nigeria’s bourgeoning real estate market.
This move, according to authorities of the company, has become necessary in view of their decision to contribute to closing the housing demand-supply gap in the country; to raise their investment portfolio by diversifying into other growth areas of the economy, and increase the size of their balance sheet.
Chicason Group is a Lagos-based conglomerate playing dominant role in various sectors of the Nigerian economy, including project management, oil and gas, manufacturing, mining, agriculture, trading and general services.
Through Rock of Ages Properties Limited, a subsidiary of the group serving as special purpose vehicle (SPV) for this project, Chicason will be developing 100,000 housing units to be financed through the SPV and spread across the various regions of the country in states that show interest.
Adike Chux, the Group’s executive director, told journalists in Lagos recently that Rock of Ages Properties Limited would be executing this project in conjunction with Trade Union Congress (TUC) in the 36 states of the federation including Abuja, the Federal Capital Territory.
“This project will be starting from Airport Road, Abuja, Lugbe behind AMAC, and Deide, a 12-minute drive from Maitama, and this promises 20,000 housing units,” he said, disclosing that the project would offer different house-types including two-bedroom semi-detached bungalows, two-bedroom apartment blocks, three-bedroom detached bungalows, three-bedroom semi-detached bungalows, three-bedroom apartment blocks, three-bedroom terrace houses, four-bedroom terrace apartments and four-bedroom semi-detached houses.
Kaduna, Kano, Rivers, Lagos and Anambra States are in the same group for the first phase of the project and, according to Chux, Anambra and Kaduna had already provided lands as a demonstration of their commitment, explaining that their attention was more in Abuja because of its growing population which presents exciting investment opportunities.
“We believe that with projects like this, the interplay of demand and supply will crash the skyrocketing prices of decent accommodation because when there is a large stock of vacant houses, the owners will look for buyers, and when we have more sellers than buyers, the price will crash. This is why we are providing mortgage facility for subscribers to save them the stress of having to go to banks to borrow money to build for themselves; we intend to bring expertise and the funds through the Federal Mortgage Bank of Nigeria (FMBN),” he said.
For those who would like to key into this project, Chux assured of a number of incentives, including a mortgage facility that requires just 10 percent deposit and the balance repayable in 20 years at low interest rate, stressing that this arrangement made the mortgage affordable and convenient to pay back.
The estates, which will be located in prime locations in the states, promise state-of-the-art facilities and other amenities such as power supply, centralised water supply system, tarred roads with walkways and drainages, ample parking space, streetlights and recreational facilities.
By: Chuka Uroko