A real estate investment firm, Mixta Nigeria, is partnering with the Edo State Government through the Edo Property and Development Agency to bridge housing gap in the state.
The partnership is expected to lead to the development of a 1,400-unit housing estate, known as Emotan Gardens Estate.
The Head, Business Development and Sales, Mixta Nigeria, Mr Korede Lawrence, stated that the plan in developing the estate, located on about 70.1 hectares of land on Upper Sokponba Road, Benin City, was to offer affordable and quality housing to every stakeholder in the state.
He said the partners had considered the current economic realities and had priced the houses to reflect these, adding that there were also medium-high priced homes in the same estate to cater to those in that category.
He said, “There is a house for everyone within Emotan Gardens. Our coming to Edo State is through a joint venture partnership. The Edo State Government has taken it upon itself to offer value to Edo people. The investment Mixta Nigeria is bringing is substantial and I would not like to put a figure on that currently because it is still evolving. But our investment is significant.
“So, even though we are doing two and three-bedroom housing units first, which really are the lower-priced products, our first release is somewhere around 400 units. A good number of them are two-bedroom units while others are of other types. The two and three-bedroom types are well-priced. The government has looked at how it would add value by subsidising some of the house types for civil servants and people that do their jobs adequately, as a way of rewarding people.”
Lawrence said a number of things attracted the firm to Edo State, such as the commitment of the state government to tackle housing deficit, adding that Mixta Nigeria, a subsidiary of Mixta Africa, would be in the state for a long time.
“The Edo State Government has taken it upon herself to offer value to Edo people,” he said.
He added that there would be a number of mortgage banks to offer mortgages to accredited people, who had shown interest in buying houses in the estate.
Speaking on the housing sector, Lawrence said the housing market was growing with an increased number of participants in the sector and across the value chain of operations from development to sales.
He said, “Everybody is a potential agent, whether they are trying to sell or lease property which in its entirety is good for the sector. It is a dynamic sector, which is still growing but has a huge potential to do more. However, there is a huge challenge with regulating the sector, which currently seems to be in the process spearheaded by developers and the professionals that offer service within the real estate value chain.
“Everyone in the sector has the same challenges, principal of which is access to funding, which when provided is usually on short-term arrangements. How do you fund a long-term project with short-term money? In addressing this challenge, Mixta Nigeria has approached the capital market for long-term loans. Our success in raising funds in the capital market shows investor confidence in us and encourages other developers to explore similar options for financing.”
SOURCE: NIPC INTELLIGENCE