Lagos State Governor Akinwunmi Ambode on Wednesday terminated the concession granted by the Lagos State Development and Property Corporation (LSDPC) to Afriland Properties for the redevelopment of the Falomo Shopping Centre in Ikoyi.
A statement by Governor Akinwunmi Ambode’s Chief Press Secretary, Mr. Habib Aruna, said the governor approved the termination of the project based on a recent discovery that the concession was “grossly detrimental to the interests of the people of the state”.
The statement said, “Only N50m was paid by the concessionaire for a 50-year lease of the property belonging to the government. “The 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 for the ultimate benefit of the people.”
The statement added that Ambode recently relieved the former Managing Director of the LSDPC, Mr. Biodun Oki, of his appointment and appointed Mr. Jacob Agosu as acting M.D, of the Corporation to stem the tide of negative capital returns of the corporation.
Afriland Properties Plc is a property management, investment and development company, offering end-to-end services along the real estate value chain, from management to joint-venture investments. On its website, it says it has a portfolio size of over N10 billion and one of the largest land banks in Nigeria.
In April, Afriland Properties announced a profit before tax of N1.74billion for the year ended December 31, 2014. The company is run by the Managing Director and Chief Executive Officer Mrs. Uzo Oshogwe, who is said to have joined the company when it was still known as UBA Properties. Also on the management team is Mutiu Bakare, who is the Chief Financial Officer. The company is chaired by Angela Adebayo, was quoted as saying that the upturn in company’s net earnings “is attributable to improved operational efficiency and focus on value creation.”
