We are committed to deliver world-class hotel facility, Primeview assures

Primeview Hotels Limited, a special purpose vehicle (SPV) for the renovation and management of Hotel Presidential Enugu, has assured that it would deliver a world class hotel facility in the Coal City, saying it looks forward to working with the Enugu State government as a partner in achieving this objective.

After a substantial outing with the preliminary stage of the work, the company says it is poised to embark on the next phase of its work plan and is currently engaging with the state government to resolve a number of unforeseen issues which have arisen, hinting that sometime last year, it became aware of a lawsuit filed by a party which allegedly had a previous interest in the hotel facility.

A couple of years ago, after extensive negotiations, a joint venture agreement was reached between Hotel Presidential Limited (owned by Enugu State Government) and E-Hospitality Services Limited for the renovation and management of the hotel and pursuant to the agreement, Primeview Hotels Limited was incorporated to facilitate the transaction.

80 percent of the equity stake in Primeview was allotted to E-Hospitality Services while 20 percent was allotted to Hotel Presidential Limited. Primeview was to fund the renovation and thereafter manage the Hotel for 35-year period while the title of the property has been duly vested in it for the duration of the concession period.

So far, the company has achieved some milestone including regularisation of statutory documents, conduct of feasibility and business study, engagement of world class professional consultants such as  project manager, development adviser, architect, structural engineer, mechanical and electrical engineers,  and quantity surveyors.

It has also conducted hydrological survey, topographical survey, structural integrity test on building,  environmental impact assessment (EIA), structural engineering, mechanical and electrical engineering,  quantity surveying; completed strip out of pipes, wires, etc in the entire building and water proofing and refurbishment of roof.

In a statement obtained by BusinessDay, the company says it would go ahead with the next phase of the renovation work on the hotel facility, disclosing that the party that sued the state government was alleging, among other things, wrongful termination of a Lease Agreement in which the state government purportedly granted it a Leasehold interest in Hotel Presidential.

“Primeview has been joined as a defendant in the suit and our lawyers are currently handling the matter. Discussions are ongoing with the state government and other relevant stakeholders with a view to resolving the issues thrown up by the lawsuit”, the statement noted.

Continuing, it said, “we have also learnt that some internal process issues have been raised regarding our project and discussions to resolve them are also ongoing. We have received firm assurances from the state government that these issues would be favourably resolved and would pose no threat to the sanctity of our transaction”.