Shred estate developers now resort to rollover of profit from existing projects to fund new ones. Taiwo Ogunbodede, the Chief Executive Officer of Cross & Churchill Estates Ltd., says it is an indispensable funding mechanism that he is employing in his two new projects, Orangeville and Shepherd II Apartments.
The harsh economic environment has introduced a near unbearable cash crunch, even in banks, and this has raised interest rates that make borrowing very unattractive. The situation is getting bleaker with the Federal Mortgage Bank of Nigeria not providing estate development loans.
There are ways round this, said Mr. Taiwo Ogunbodede, “Our company is a going consign that has been on for over nine years and we have done projects overtime. The company has its own internally generated revenue. It is not our first project. What is done over time is that you enter project A and in real estate business what you do is move the profit of project A to the next project to start it and once you start the next project and with the sale off-plan you keep on building.”
On bank loans, he said “Another option is to go to the banks. The interest rate in the banks today is about 30 per cent per annum but I don’t know how you’re going to do it. Of course, you can go to the bank for a bridge loan for two to three months but today banks are not willing to lend to real estate.
Orangeville and Shepherd II Apartments…
Cross & Churchill focuses on the development and sale of serviced plots and residential property. Ogunbodede said the poor financial environment and market survey had made it imperative for his company to scale down their project type. The market, he said was no longer suitable for mansions and villas. “What the market needs now are small size, well-finished apartments that are not only functional, but also affordable.”
Cross & Churchill is employing venture capital and other funding arrangements in its two new projects, Orangeville and Shepherd II Apartments, said Ogunbodede. Orangeville is located in Okun Ajah while Shepherd II is at Ibeju Lekki.
Orangeville has a block of 24 apartments, comprising 12 units of 2-bedrooms and 12 units of 3-bedrooms; Shepherds II has 16 units made up of 8 units of 2-bedrooms and 8 units of 3-bedroom apartments.
He said Orangeville, also known as The Berkshire Apartment, is designed as an iconic development and that its location is in ‘mid-town Lekki’ with easy access from the mainstream neighborhoods of Lekki Phase1, Ikate, Jakande and Chevron and the Central Business District of Victoria Island, Ikoyi, Marina and Broad Street.
The property is built on three floors, and according to the concept, “blends modern attitude with traditional delight to create contemporary living with high specification facilities. It has bespoke living and dining rooms which were crafted with residents’ extra coziness in mind.”
Other facilities include visitors’ toilet, maid room, storage room, spacious living room, dining area, comfortable master’s bedrooms, fully-fitted kitchen with heat extractor, contemporary bathroom, toilet designs and fittings, beautiful floor design with vitrified tiles, spacious and carefully conceived floor plan, and massive headroom allowance in every space.
Shepherds II Apartments, the promoter said is a “well-crafted luxury home that offers a blend of modern attitude with traditional neighbourhood comforts that bring a new meaning to urban living.”
The project is located shortly after Adiva Plains/Beechwood Estates, Lakowe Lake Resorts and Mayfair Gardens. It is about 5 minutes’ drive before the Amen Estates and about 8 minutes’ drive before the junction of the proposed new Lagos Airport.
It also has visitors’ toilet, maid room, storage room, spacious living room, dining area, comfortable master’s bedrooms, fully-fitted kitchen with heat extractor, contemporary bathroom, toilet designs and fittings, beautiful floor design with vitrified tiles, spacious and carefully conceived floor plan, and massive headroom allowance in every space.
It has security post, gate house and full security apparatus; water treatment plant, paved premises, drains and walkways, parking space for, at least, two cars per apartment, and central generator which is not included in the purchase price.
The company, he said has plans for easy uptake, explaining that “Before now, we were demanding as high as 30 per cent down-payment from buyers. Now, for these our new projects, we are asking for just 10 percent and the rest payment spread over 24 months.”
The concept, he said was in line with the company’s mission ‘to be the destination for the provision of affordable, innovative and customer-centric real estate solutions within Nigeria and Sub-Saharan Africa landscape’.
According to him, “They also align with our vision of a property market where we want ‘to be the dynamic provider of cutting edge real estate products and services with trust, professionalism and robust customer care as our operating philosophy.”