LFTZ: Property value soars as Dangote commences construction of refinery

Lekki Free Trade Zone, a global business haven on the outskirts of Lagos, along Epe Expressway, is now a thriving real estate market, especially since Dangote Group and Progress Maritime Limited commenced the construction of their refinery-cum-petrochemical plant and tank farm development, respectively

Since Dangote Group awarded the project to management consultancy, engineering and construction management of its 400,000bpd (20m tons) oil refinery and 600,000 tons polypropylene plant, Lekki and its environs has never been the same again. The area, which used to have a narrow single lane road and notorious traffic congestion, is fast becoming a global business haven, a new dual carriageway with three lanes on both sides. The new attracting features of the

Lekki Free Trade Zone (LFTZ) are enormous. Some of them are the state-of-the-art tollgates and most importantly well-structured estates and beautiful architectural landscapes.

The presence of Dangote alone has attracted other related businesses like Progress Maritime Limited, Obat Oil and Eko Resort to the area. For instance, Progress Maritime, a shipping company that has bought hundreds of hectares of land in the area, has awarded the construction of its tank farm development to Oladele Oluwamotemi & Associates, a construction developer. Like Dangote, the developer has moved its construction equipment to the site, which has been fenced round. A source in the firm confirmed that the site was purposely located opposite that of Dangote refinery, saying “we can’t afford to stay far away because the proximity to the raw material is our unique selling proposition.” These developments have created a boom in the property market in Ibeju Lekki and the Lekki Free Trade Zone area.

Thanks to the invasion of the area by investors like Aliko Dangote, president of Dangote Group, and management of Progress Maritime, Lekki, Epe has been transformed from a near backwater settlement on the outskirts of Lagos into a sprawling, modern settlement, one of the fastest growing areas in Lagos.

To many, the Lekki corridor is the ‘New Lagos,’ judging by its booming real estate, massive construction projects, and huge government presence in the planned LFTZ. To real estate professionals, these areas are now a goldmine. The concentration of high-net worth individuals and high-end businesses in LFTZ has made it a good catchment area for investments. Both foreign and Nigerian oil companies are now thinking of relocating to LFTZ in order to enjoy a well-planned and less congested business environment.

According to Gbenga Owoeye, a property consultant, due to the non-availability of land in Ikoyi and Victoria Island and the attendant rising rents, more prospective homeowners are also looking towards the Lekki–Epe axis, and are erecting fantastic structures comparable to those in Europe and other advanced countries. Epe, Oakview Estate, Otunla Town, Awoyaya, Beachwood Estate, Lakowe Lakes International Golf Course, and Amen Estate, and many more, are replete with such exotic structures.

Lakowe Lakes International Golf Course is one of the most developed real estates in Lagos State in form of infrastructure and utilities. The unique characteristics of the estate, which is in Ibeju Lekki, is that its kitchen is fully equipped with contemporary fittings that make cooking and serving delight. The estate also boasts of Olympic size swimming pool, 24 hour CCTV surveillance, maximum security and a state-of-art recreational park, among others.

To an onlooker, the Beechwood, another estate, could only be termed a mix of grandeur and style. The walls of the said properties are screened, that is, sanded and polished to allow a smooth and straight finish, creating a sharper appearance and textured finish; while the ceilings are plaster of Paris, coated, providing a smooth finish and a white effect. In addition to this, the toilets and kitchens are of the highest standards, with equipment imported from Britain.

One very interesting thing about some of the houses is that some are well packaged, that is, a prospective owner need not worry about buying household artefacts or furniture. Such are already provided for; while in some others the property is partially furnished. Many expatriates are easily attracted to such apartments. The houses are serviced with 24-hour backup generator (three units inter-changeable); there are those who come with swimming pools, gym and fitness spaces, as well as ample parking spaces and adequate security.

Ranti Adedeji, managing partner, Adrant Partners, a real estate and property consultancy firm, said due to the influx of people to Lekki, the value of property is currently sky-bound, with rents hitting the roof.
According to him, a three bedroom flat in Ibeju-Lekki has increased from N1.5 million to N3 million per annum. A duplex in the area rose from N15 million to between N30 million and N45 million, while those willing to rent same apartment will have to pay between N8 million to N10 million per annum. In addition, he said a block of flats goes for between N40 million and N65 million outright sale, whereas to rent same property, a prospective client will have to pay between N2.5 million and N3.5 million per annum.

Apart from residential apartments, offices of banks, major automobile dealers, eateries, as well as shopping plazas now dot the LFTZ landscape. “And more are on the way,” Adedeji said. He was emphatic that more shopping plazas and commercial properties will yet spring up in the area. Adedeji’s position is right. In his remarks when Babatunde Fashola, the state governor, introduced him to the community, Dangote noted that his company’s decision to bring the refinery to the area is timely and such development would open more investment windows for other medium or small-scale investors. To affect the lives of residents and the community at large, the richest African has greater plans. He assures; “We will train over 8000 Engineers and also provide uninterrupted power supply that will enhance investment drive and attract other viable investments towards this axis of the state.”

Indeed, experts forecast that LFTZ has the potential to be Africa’s largest commercial city in the nearest future. Credit for the rapid growth and development of Lekki is given to the Lagos State government which constructed and expanded the Lekki–Epe Expressway, the introduction of the computerised tollgate, and the development of new alternative routes that have now made driving to and from Lekki not to be as cumbersome as before.

Collaborating with the Lekki Concession Company, LCC, the state government has intensified construction activities in the entire area. The partnership, which has evolved into a 30-year concession programme, will see the area witnessing a unique turnaround, and transforming into a highly modernised and functional living and working environment. Opuiyo Oforiokuma, chief executive officer, LCC, boasted that Lekki would be a world-class arena, both in terms of influx of businesses as well as in residential properties.

In all, the axis recorded another feat with the proposed Lekki-Epe International Airport, where construction has started. It has, no doubt, added to the story of transformation of Lekki-Epe axis, and certainly increases the investment drive in the area. However, some critics argue that there will be more pressure on the infrastructure on ground. But one thing is certain: Lekki-Epe axis will never be the same again.