How MIXTA is changing the face of affordable housing in Nigeria
MIXTA PLC, one of the top real estate firms in the country, recently secured a $19.5 million credit loan from African real estate financiers, Shelter Afrique.
This is the second such credit line the organization has extended to MIXTA within the space of a year, following the earlier approval of a $13 million dollar loan agreement for the development of 800 low to middle income housing units in Morocco, Senegal and Ivory Coast.
Commenting on the transaction, MIXTA’s Chief Financial Officer, Mr Benson Ajayi, said; “With the funding from Shelter Afrique, we intend to build the Marula Park project faster, in order to ensure a quick turnaround time for our clients. In addition to our standard payment plans, the residential units will be sold under the MIXTA Flex scheme which offers varying mortgage plans that allow clients to pay upwards of 30 years and at interest rates as low as 6%.”
Findings by Castles Lifestyle revealed that the current batch of funding will cofinance MIXTA’s affordable residential housing project investments in the country, as well as, help restructure company debt. To that effect, half of the amount, ($9.75 million) will be used to repay part of MIXTA’s debt raised from the market, while the remaining half will go towards the development of 1,171 housing units in Lagos. The units are located in the ongoing Beechwood Park and New Marula Park projects; both of which operate under the company’s ‘DUO’ initiative.
What is DUO?
It has been previously noted that the gap between the demand and supply of affordable housing presents a sizable business opportunity for property developers. DUO, a housing development solution developed by MIXTA, is a “Rent-To-Own” scheme for customers who are unable to pay outright or experience delays in accessing timely mortgage.
According to MIXTA Country Manager, Sade Hughes, “The financial system is evolving and the cost of funds is a major stumbling block to realizing affordable housing. DUO is an initiative for home acquisition focused on affordability for subscribers.”
In its professed bid to make affordable housing more accessible to the average Nigerian, MIXTA have embarked on a series of residential housing projects across Lagos.