Benefits of site and services scheme – MD Urban Shelter
Urban Shelter recently commissioned an estate in Minna, Niger State, what was it all about?Part of the activities of Urban Shelter is to do what is called backward integration anything that is associated with building we try to see if we can do it directly, that is why we have companies that are into brick […]
Urban Shelter recently commissioned an estate in Minna, Niger State, what was it all about?
Part of the activities of Urban Shelter is to do what is called backward integration anything that is associated with building we try to see if we can do it directly, that is why we have companies that are into brick industry, aluminum companies and those doing interlocking tiles. We also look at what we call site and services where we put services on the land, sell them and people can build what they want and according to their taste, unlike what we are known for that is conceiving idea and designing and implementing.
So that is what happened in Lawu Estate, we have sold the land and commissioned it last month some people have already started building there.
How many plots are there?
We have about 220 plots ranging from 450 to 900 square meters and there are lands for shops in front of the land we call them commercial.
Is there a standard design that allottees must conform to?
Allottees can bring design that is acceptable to the Urban Development Board who controls development in Niger State.
Are they affordable?
Yes, they are in the sense that there are people who don’t want to live in an estate and there are people who just want to buy and enter their houses so it’s a question of choice. In Suleja we are doing another site and services scheme in a place called Rock Valley Estate. It’s a 22 hectare land and we found out that Abuja land is very costly for people and because of the proximity of the site to Abuja not more than 15-20 minutes drive.
The only difference between Rock Valley and Lawu Estate is that the former is finished in coal tar while Lawu is in macadam which is double surfacing and lower in cost by 30 to 40 % and lasts between 20-50 years. With asphalt you have to put laterite first before the stone dust, roll it before you put a lining of coal tar allow it to dry before you put the nylon coal tar.
How many plots do you have at the Rock Valley Estate?
We have about 280 plots also with commercial plots in front, because we have just started we only have about 12 subscribers for now. In Kaduna also we have the same site and services scheme at the Millennium City. We have about 10 hectares with over 200 plots. We have finished the design and about giving tender for construction work.
Is Urban Shelter shying away from actual construction of houses?
No, no, that is just by the way side, it’s just like 10% of our activities. Our primary responsibility is to build and sell houses, however, when there are opportunities for people who want to build to their taste to do so, we allow them.
Considering the quality of the houses you build has Amina Court houses been sold?
Amina Court is in 2 phases, we have sold the first phase. We have sold out, only we have balance from some people to collect then we have 39 number of houses in the phase 2 which is about 8 hectares so we have started that one and it is at the foundation level.
What is the category of the houses there?
There are 3 bedroom terraces with boy’s quarters and 4 bedrooms semi-detached with boy’s quarters and they range from N52-69 million.
What about Brick City Phase 2 along Kubwa expressway Abuja?
We have one bedroom studio house, we have 2 bedroom block of flats and 2 bedroom semi-detached, we also have 3 bedroom detached and 3 bedroom semi-detached and the amount ranges from N4.9 million to N18.5 million. We are about finishing, even the President has asked the VP to commission the place on his behalf which we slated September 18th as a tentative date. Phase 2 is finished, we are talking about phase 3. There are some organizations that have shown interest.
We have about two to three thousand houses that organizations through their cooperatives have shown interest and some of them we have signed agreement, we are having understanding with Federal Mortgage Bank of Nigeria (FMBN) and we are at the verge of starting to build very soon.
In phase 3 the categories and prices are the same with phase 2. You can actually build a 3 bedroom with N14 million to N14.5 million, however it needs reducing the sizes of some rooms, but if you go beyond what people can afford then you’re in trouble.
How would you describe the housing market in Nigeria in terms of demand and supply?
The demand is always there but the ability to purchase is another thing. Shelter comes after food, I heard that our housing deficit has gone up from 17 to 23 billion now, you find that a young graduate newly married needs a house and by the time he starts having children he wants bigger houses so housing demand is always there. I want to see the day even a market woman can come into a bank and say she wants a house to buy and I pray it materializes with the effort the government is putting in place like Nigeria Mortgage Refinancing Company.
Why do we have empty houses in empty estates in places like Lokogoma or Apo in Abuja?
Even me it beats my imagination when I see some of such houses lying fallow for years so it’s either there are people who are in the business genuinely they just want to launder their money and don’t care if the houses stay for several years unoccupied whereas people like us share our profits with the banks so at the end of the day the bank takes even higher profit.
Urban Shelter recently signed MoU with the FCT Administration on their land swap system what is the progress so far?
The minister is very tenacious on this because he believes it will generate funds needed for infrastructure, nearly 12 to 13 companies were given the opportunity and it is like they are sifting the grain from the chaff presently because I heard that 6 or 7 companies may finally emerge after the exercise. It is a capital intensive thing and therefore not easy. In Urban Shelter we have a sister company called Urban Shelter Investments Ltd. that is the one that is in Land Swap.
With the coming on board of the Nigerian Mortgage Refinancing Company what advise do you have in terms of bringing down interest rates on loans to purchase property?
The Federal Mortgage Bank of Nigeria (FMBN) is giving out mortgage at about 9% but if they have more money they can give it at less than that, it is hoped that government can come to their rescue because they are doing very fine now unlike before when they were doing business like shareholders. If all government organs will pay their dues, like I heard that they have N250 billion to collect from CBN, if they get such funds it will greatly enhance the supply of houses.
Also, if they want to succeed they can’t do it alone but should synergize with what FMBN is doing and make commercial loans available, and FMBN must ensure it provides affordable houses for the ordinary Nigerian.