August 19, 2015 – Lagos State Governor, Mr. Akinwunmi Ambode has terminated the concession granted by the Lagos State Development and Property Corporation (LSDPC) to Afriland Properties for the redevelopment of the Falomo Shopping Centre, Ikoyi.
In a statement signed by his Chief Press Secretary, Mr. Habib Aruna, the Governor said that the decision was carried out based on a recent discovery that the concession was grossly detrimental to the interests of the people of the state.
According to him, only N50million was paid by the concessionaire, Afriland Properties, for a 50-year lease of the property belonging to the government.
He said the State Government as custodian of the interests of Lagosians is committed to the restructuring of the LSDPC to ensure it begins to provide positive capital returns to the State Government for the ultimate benefit of the people.
It would be recalled that Governor Ambode two months ago, relieved former Managing Director of the LSDPC, Mr. Biodun Oki of his appointment, just as he appointed Mr. Jacob Agosu as Acting CEO of the Corporation, in a bid, according to the statement, to stem the tide of negative capital returns of the corporation.
Contract for redevelopment of the shopping complex was awarded during the tenure of former governor of Lagos State, Mr. Babatunde Fashola.
Afriland, a subsidiary of Heirs Holdings got the contract to develop the shopping mall into an office complex and world class residential apartments that will serve the needs of residents of Lagos state and beyond.
It has Uzo Oshogwe a close ally of Fashola as Managing Director.
Speaking during a tour of the project site, former Managing Director of the LSDPC, Mr. Biodun Oki said the Falomo Shopping Mall’s redevelopment is long overdue.
“Our partnership with Heirs Holdings is in line with the state government’s urban redevelopment project and it bodes well for the state, the country and for the citizens. Once this project is completed, we can all look forward to a new and improved landscape that will stimulate business activity in this area and beyond. Involving the private sector in our redevelopment agenda is the model for all future projects”, he said.
Speaking earlier on the project, Chairman, Heirs Holdings, Mr. Tony Elumelu his firm is taking the contract to construct the mall as part of commitment to drive development and move Nigeria forward through business activities.
Afriland Properties has a portfolio size of over N10 billion and one of the largest land banks in Nigeria. It is reputed for bringing innovation to the real estate sector in Nigeria and other African countries by drawing on experience, new competencies, and technology to achieve continuous improvement in service delivery to its numerous clientele.
The Falomo Shopping Mall redevelopment project is a private/public sector agreement between Afriland and the Lagos State Development Property Corporation (LSDPC).
