In addition, the development layout and land allocation policy allow for the development of an estate office for the effective management of the estate, and ancillary facilities including a recreational area, all of which would attract substantial additional income to the project.
A pre-development estimate has put the total project cost for the development of the estate at N7,779,520,000.00 (Seven Billion Seven Hundred and Seventy Nine, Million Five Hundred and Twenty Thousand Naira), i.e. cost of land + cost of construction at full completion of the residential units + cost of infrastructure. However, we will not be requiring this entire sum immediately.
Total minimum revenue expected from sales of the 458 residential houses alone is estimated at N9,255,000,000.00 (Nine Billion, Two Hundred and Fifty-Five Thousand Million Naira) with a significant revenue to be derived thereafter annually from the management of facilities to be provided.
a) TARGET
First and foremost are all those enquirers who responded to our various Advertising Campaign about our estates around the Lekki-Epe peninsula in Lagos state, but could not afford the houses and have told us to inform them when work begins on the more affordable Havilah Villas,Isheri, Ogun state.
Secondly are groups, cooperatives and incorporated trustees whom we encourage to bring group applications with a view to benefiting from the huge discount often granted to such groups.
Thirdly, those individuals who want to escape the stress of having and heavy to commute from the Lekki corridor and Lagos Island generally to the mainland on a daily basis.
Our target market therefore, are in the categories stated below:
i) Corporate institutions wishing to buy houses for their staff and these include MTN, Econet Wireless, Diplomatic Missions, NPA, NEPA, Oil Marketing Companies, Banks etc. with offices in the vicinity.
ii) High net-worth individuals who prefer to live in environments of this nature for security reasons.
iv) Nigerians resident abroad. These people are used to serene environments of this nature and have been frustrated in an attempt to build houses in Nigeria .
b) STRATEGY
Our strategy is to extensively advertise this project both locally and internationally. We plan to continue with our advertising agency 360 Degrees Limited, whom have already begun an intense marketing campaign for this project. Apart from the usual advertisements through the newspapers, radio and televisions, the following methods will be adopted:
iv) Bulk purchases will be allowed at attractive discounts. By bulk
purchase, we mean purchase of not less than ten (10) houses.
Real estate development in the Lagos area is more or less becoming exhaustive. The Gateway City, Ogun State, on the other hand, remains the upcoming preferred area of development for both the middle and high net worth individuals in pursuit of pure residential serenity and commercial convenience. Given that the emerging development of the Gateway City in Ogun state will positively impact the Economic and commercial status of Lagos, Havila villas, Isheri, as a choice location is unquestionable.
Recent analysis indicate very strong demand for the rental and outright purchase of properties in this prime catchments areas and the extent and depth of such demand can be ascertained through the proliferation of religious campgrounds on the axis.
Evidence of such demand is however borne out in the ever rising prices for properties in these areas and the factors that sustain such demand growth include but are not limited to:
The corollary of such high demand for residential and commercial properties in these areas is the rapid depletion of suitable land and houses for residential usage and the concurrent congestion and over-development of the prime areas of Lagos State .
The development of The Gateway City particularly Havilah Villas is intended to break this vicious spiral permanently, by offering institutions and individuals a first rate alternative of residing close to their preferred corporate locations, whilst enjoying the benefits of a location that is at once serene and secure, with efficient infrastructural facilities. All this and more in a location that is just 10 minutes from the heart of Ikeja, the capital of Lagos State and a maximum of 20 minutes from Murtala muhammed International Airport, Ikeja.
Furthermore, the prospects of the developments are reinforced by current trends in property development in Isheri areas of both Lagos and Ogun States . Several developments have sprung up recently in these areas such as the Isheri North Housing Estate, developed by LSDPC and Sparklight Housing Estate. The Ogun State Government through the agency of The Gateway City Development Corporation (GCDC), our co-developer is also offering site and service plots to the purchasing public.
Land prices alone in such development typically range from =N=2,000 to =N=10,000 per square metre and there appears to be little difficulty in finding buyers for such. These prices compare very favourably (on a per square metre basis) with the anticipated sale prices this development offers, which needless to point out, includes the construction of our ultramodern housing units.
The factors that have operated to create a significant gap in the upper income end residential housing market that this development proposes to fill may be summarized as follows:
(i) The congestion and over-development of most parts of Lagos State resulting from the absence of planning and laxity in enforcement of what planning regulations exist have reinforced the impression that these are prime candidates to be future slums and may suffer a fate similar to Central Lagos or Yaba, once proud, serene and secure residential and commercial locations.
(ii) The advantage of locational proximity to Ikeja, Lagos state capital is a significant incentive when compared with other developments such as Victoria Garden City and others along the Lagos-Epe Expressway axis, where commuters are faced with rigors and dangers of plying an overly long route to and from work.
(iii) The affordable pricing of the houses will enable high quality residences to be offered at affordable prices. The prices compare very well with other developments, which are offering, for instance, 4 bedroom services Terrace Houses in Isheri North Estate,Lagos for =N=9– 12 Million, which comparatively are not finished to the high quality of finishing which Grant Properties Limited is known for.
(iv) Inspite of our goodwill and proven track record, we still offer completion guarantees and security on deposits.
(v) The emergence of a class of enterprising professionals, sustained by the rapid growth of economic activities in the state and the country in general since the advent of the new government is fuelling the demand for both affordable and quality housing. Such professionals are likely to be attracted by the main features offered by the proposed development as well as the exclusivity and perception of status conferred by such a prestigious development.
(vi) The depreciation in the value of the Naira against major world currencies has made such residential units relatively inexpensive for expatriates or foreign companies and their employees. Coupled with the anticipated sharp increase in levels of foreign investment flow into the state, consequent upon the return of the Nation to constitutional democracy and the renewed privatization and deregulation drive in the Federal Government’s, the proposed development’s planned takeoff for this third quarter 2004 is excellently timed to take advantage of further economic growth in the country.
Apart from the benefits that will accrue to your bank in terms of increased deposit base resulting from the deposits for the houses, and earnings from it resulting from COT and other bank charges, the following other specific benefits will accrue to it for supporting the project.
i). In view of the fact that the sales will be advertised both locally and internationally, the buyers will avail themselves of the facilities for the transfer of their money through the various foreign correspondent banks of the participating banks. Considering the volume of this transaction, this should bring into the banks increased earnings and image boosting. From market research and analysis, there exists a large professional class resident abroad who seriously desire to own houses in Ogun state but are unwilling to take the risks associated with project development ranging from purchase of land with defective title, to poor and delayed construction. Most of these buyers will be happy to buy properties under this scheme, which is well protected, and pay for it through the correspondent banks which are members of the Western Union Money Transfer Scheme and many others presently operating in Nigeria today.
ii). The banks will be seen as good corporate citizens for supporting a project, which will alleviate the suffering of the citizens and foreigners in house ownership and also move the economy further.
iv). Although there are many other competing developments around, none at present will beat Havillah Villas in good location,quality,pricing,and prompt delivery which suggest why interest on it is so high.
v). The track record of Grant Properties Limited as the first and only wholly-owned indigenous company to develop a Residential Estate of the magnitude of Goshen Beach Estate, Lekki, Lagos state as its first project cannot be overlooked. It is certainly working for us and it will when we successfully complete Havilah Villas.
vi). The Contractor being used now has a proven track record in China and has promised to put the weight of its parent company in China behind this project. The success of a project of this nature depends largely on the capability of the Contractors to deliver and this is not in doubt for MadisonGrant International Nigeria Limited.