Wemabod to Raise N50bn Bond to Finance Commercial, Residential Developments

Wemabod, 62-year old Nigerian real estate solutions provider, has concluded arrangements to raise N50 billion bond to finance construction of commercial and residential developments in Lagos. The management and its partners completed the signing last week.

At the signing ceremony in Lagos, it was indicated that the N50 billion which will be raised in series is starting with N4 billion bond issuance to finance the construction of the mixed-use development of Unity House in Lagos that will include office space and residential apartments. The company created Wemabod Financing SPV Limited (“WFSL”) to execute the earmarked real estate and property development projects. The SPV is composed of independent trustees.

Speaking at the signing ceremony in Lagos, Chief Executive Officer of Wemabod, Yemi Ejidiran, said the first series of the funds would be used to support the development of Unity House at 37 Marina from pure commercial rental to a mixed-use property.

“The Unity House is a 21 storey building and the new construction according to Ejidiran is one of the kinds in Central Business District anywhere in Nigeria. He said 15 floors of the building will be converted to residential floors and it has been designed by consultants to accommodate onr-bedroom and two- bedroom suits.

“In addition to the redevelopment of the Unity House, the funds will also be used for the development of a mixed development property that will house a mall and other recreational facilities in Ikorodu and other parts of Lagos, “he said.

He said the idea behind the project and more to come is to promote residential development in the central business district of Lagos State, which will reduce commuting time for workers.

According to him, ”this project is very critical at this point in the nation’s life knowing well the policies of the Federal Government which has affected where people work and live. It is critical for investors to take advantage of the opportunity that this development will bring. The benefit is that people can stay close to where they work.”

Managing Director of Goldblanc Management Associates, GMA, financial adviser to Wemabod and a leading issuing house, Olu Abayomi Sanya, explained that they are giving a range of between 17.5 per cent and 18.5 per cent to the bond. “This was done because the FG three-year bond is 16.5 per cent. They added 150 basis points above FG bond”.

On the importance of the bond to construction, Sanya said this is what realtors should be doing because construction financing is always a difficult thing to do.

While commending the initiative of Wemabod to convert some buildings in the Central Business District to mixed-use, he said some people want to live closer to where they work. “The direction Wemabod is going is the direction to go as it is done in major cities. All the dilapidated structures in Marina could be reconstructed and put back to the market for people to live and work,” he said.