NEW PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT

PROPOSAL FOR INVESTMENT IN

REAL ESTATE DEVELOPMENT AT

ATAN OTA, OGUN STATE.

©2010

VINEYARD PROPERTIES LTD Suite 97, Retail Mall Abesan Estate, Ipaja, Lagos E-mail: [email protected]

PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT AT ATAN OTA, OGUN STATE OF NIGERIA.2008

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SITING AND CONSTRUCTION OF

ROYAL VINEYARD ESTATE

IN

ATAN OTA, OGUN STATE

PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT AT ATAN OTA, OGUN STATE OF NIGERIA.2008

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1.

PREAMBLES.

1.1 Real Estate investments have been proven years over the years to be the most rewarding investments option since creation. No wonder every facet of both private and commercial life centers on real estate, as various establishment requires it to conduct their businesses. This investment window returns absolutely on investment and yielded over 200% in the last 2 years. In view of the above, and with shelter playing prominent role in human existence, we have taken the pains to make our mark in this sector. 1.2 We are an indigenous company with interest and core competency in property acquisition, sourcing, development, trading, warehousing, real estate investment and Mortgage Origination. We are actively involved in the development of both residential housing scheme and commercial properties basically in Lagos and other parts of the country. Our professional position and affiliations also gives us leverage in facilitating mortgage origination owing to the fact that availability of fund for home ownership project execution is almost not within the reach of average individual and corporate employees. 1.3 We are located at No. 9, Opeki Layout, Abesan Estate, Ipaja, Lagos. We also have a branch office at No. 15B, Salaudeen Akano Street, Ogudu G.R.A., By Pako Gate, Ogudu, Lagos. Our affiliation with a number of financial institutions gives us a lead in the delivery of decent and sustainable housing at very affordable pricing. 2. PAST EXPERIENCE 2.1 By direct involvement and support services, we have maintained an enviable track record in the development and delivery of various housing estates. These include the following among others to mention just but a few.     

Crown Court Estate 1- Lekki, Lagos. Crown Court Estate II- Lekki, Lagos CBC Towers Utako Mews, Utako, Abuja His Majesty Estate Itele, Ota

3. PROJECT CONCEPT 3.1 The concept to be adopted towards the achievement of the objective of this investment proposal will include but not limited to immediately acquiring a 100 acres of land at Atan Ota, Ogun State for site and service purposes. The developmental proposition for this project will be in phases. The first phase would be as stated above. 3.2 Second phase of the project concept will center on the development of these properties for the owners, either for commercial purposes and or residential. This phase would tie to the federal mortgage bank of Nigeria. The project will entail a well laid out landscape with infrastructural amenities. It will sit on approximately 100 acres of land and House over 1200 occupants. Various housing units' type proposed for this estate includes 3 bedrooms, 2 bedroom and 1 bedroom bungalow all room ensuite; as well as Detached and SemiDetached Duplexes with exquisite designs. PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT AT ATAN OTA, OGUN STATE OF NIGERIA.2008

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3.3 There would equally be room for the development of tastefully finished structures for those desiring to invest therein. It is estimated that this project will be completed and delivered in phases, therefore 12 months would be dedicated for phase 1, while the other phases will be in line with the instructions from the various owners. 4. PROJECT LAYOUT 4.1 The proposed estate development project will be specifically designed to accommodate both the working class and others who are not steady income earners. The estate is proposed to comprise various categories of buildings nicely laid out on a complementary beautiful landscape. The building categories intended for this estate are as listed below. Category A - building in this group constitute 2 bedrooms fully detached bungalows Category B - building in this group constitute 2 bedrooms semi detached bungalows Category C - building in this group constitute 1bedroom fully detached bungalows Category D - building in this group constitute 1 bedroom semi - detached bungalows 4.2

All categories of building proposed for the estate will be completed with kitchens, toilets and finished to internationally acceptable building standard.

5. 5.1

NEIGHBOURHOOD CENTRE The neighborhood centre shall consist of a recreational center specifically designed for relaxation and provided with facilities for games and exercises with a health care center, police post, schools, religious places etc.

6.

FACILITIES The facilities to be provided in this estate shall include: Roads, Borehole Water System, Electricity and Drainages It is proposed that there will be two types of roads within the estate. These are as detailed below:

7.

•

Access Road and

•

Secondary Roads.

ENVIRONMENTAL AESTHETICS The Estate has been conceptualized and planned to rank in beauty, security, layout and services in the mould of the highbrow estates in the Lekki-Ajah area. In fact it is a reproduction of the Victoria Garden City in the Otta area.

PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT AT ATAN OTA, OGUN STATE OF NIGERIA.2008

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8.

LOCATION

8.1

Site 1: The expanse of land is situated in Losada/Idobarun/Alapoti villages, Atan Otta in the Ado-Odo Local Government Area of Ogun State.

8.2

Site 2: The entire spread is located in Ishola Village, on the tarred road which branched off

at Lusada (The home of Crawford University), on the Atan – Agbara road. 8.3

Site 3: The land is situate in Adiye Owe village on the left side, along the Atan – Agbara Road. It is a five minutes drive from Atan Ota and a 12 minutes drive from Winners Chapel.

9.

ACCESSIBILITY

9.1

Site 1. a. b. c.

9.2

Site 2. a.

9.3

10.

The site is located having its North Gate on the Tarred Road linking Atan Ota and Ado Odo; the Local Government Headquarters for this area. The South gate is located on the tarred road linking Atan Ota and Lusada (The home of Crawford University). The land could also be linked through the Atan – Agbara Road

b.

The parcel of land is situated on the tarred road linking Atan Ota and Lusada. It is at the back of Crawford University and the new site for Nigerian Breweries staff Quarters. The land could also be linked through the Atan – Agbara Road

a.

The main access road is the tarred Atan – Agbara Road

Site 3.

ELECTRIC POWER The site is well supplied with electricity provided by the national grid

11.

TOPOGRAPHY: It is a flat land with no encumbrances

12.

OWNERSHIP The expanse that is accessed through the North Gate is owned by the Ado Odo Royal Family while the one through the South Gate is owned by the Ishola Family. The entire 100 Acres (with possible future expansion is administered by the Royal Family and the Kabiyesi in Ado Odo.

13.

SECURITY OF LAND AFTER PURCHASE. Processing of all papers for ownership and possession would be initiated as soon as the first installment is paid.

PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT AT ATAN OTA, OGUN STATE OF NIGERIA.2008

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14.

COST OF THE LAND

14.1

Site 1: Owing to the bulk purchase packaging, the negotiated price for the land is pegged at N300,000 (Three Hundred Thousand Naira) per Acre including agency commission and other charges (Ilagbe, Iwoko, receipt et al inclusive). This comes to N30,000,000 (Thirty Million Naira only) for the 100 Acres.

14.2

Site 2: Owing to closer proximity and accessibility and considering the level of development in this area, the negotiated price for the land is pegged at N550,000 (Five Hundred and Fifty Thousand Naira), for bulk purchase, per Acre including agency commission and other charges (Ilagbe, Iwoko, receipt et al inclusive). This comes to N55,000,000 (Fifty Five Million Naira only) for the 100 Acres.

14.3

Site 3: Owing to proximity to Atan and accessibility and also considering the level of development in this area, the negotiated price for the land is pegged at N600,000 (Six Hundred Thousand Naira), for bulk purchase, per Acre including agency commission and other charges (Ilagbe, Iwoko, receipt et al inclusive). This comes to N60,000,000 (Sixty Million Naira only) for the 100 Acres.

15.

PAYMENT TERMS The family has agreed to three installmental payments in equal installments.

16.

FULL POSSESSION FOR PERFECTION OF TRANSFER PAPERS As soon as the first installment is made, the land would be carved out for us to start processing the papers which would include the perimeter survey and the C. of O

17.

PROXIMITY & SERVICEABILITY; The estate will be available for patronage from the workers and residents in the following areas: 1. Agbara industrial Estate 2. Sango-Ota industrial areas and environs 3. The customs, immigration and other law enforcement agencies in the Idiiroko/Seme borders and environs 4. Private entrepreneurs 5. Sundry developers 6. Foreign expatriates with flare for exclusivity 7. Locals

PROPOSAL FOR INVESTMENT IN REAL ESTATE DEVELOPMENT AT ATAN OTA, OGUN STATE OF NIGERIA.2008

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18.

PROJECT DYNAMICS

18.1 The dynamics inherent in this project shall be such that the owners of the landed properties will be persuaded to accept installmental payments at different stages of development. Whereas we would have began the sales of this property, the cash inflow from final beneficiaries will actually be used to finance acquisition of this properties. Collaboration with other financial institution and the promoters can also be arranged. This will therefore necessitate our developing a relationship with such. 18.2 The strategy to be adopted will be to first advertise this project by way of sensitizing members of our immediate neighborhood via application for the project and with a promise of sourcing social loan with 6% p.a interest rate payable over a maximum period of 30 years or at worst commercial mortgage loan at 20% p.a repayable within 20 years to enable them develop the houses. The application form will determine the development option applicable to each applicant. 19.

PROJECT DURATION

19.1 This project will be completed and delivered within 8 months. Once the construction works have commenced subscribers to NHF loan will be cultivated to subscribe into the property, so as to ensure that the period of pay -off is significantly reduced.

PROPOSAL FOR INESTMENT IN REAL ESTATE DEVELOPMENT ATAN OTA, OGUN STATE OF NIGERIA.2008

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20.

PROPOSED PROJECT COST

Phase 1

Site 1

S/N

Details

20.1

Cost of Land 100 Acres

20.2

Preliminaries:

N'000

20.2.1 Design and Planning

Site 2

Site 3

N'000

N’000

N’000

30,000

55,000

60,000

4,000

4,000

4,000

2,400

20.2.2 Site mobilization/ site office/ work

750

20.2.3 Provisional of Temporary Light water

300

20.2.4 Site Clearance & Earthworks

550

20.3

C of O / Lawyers Fees

3,600

3,600

3,600

20.4

Perimeter Survey & Surveyor’s fees

2,200

2,200

2,200

20.5

Infrastructures

16,036

16,036

16,036

55,836

80,836

85,836

2,791.8

4,041.8

4,291.8

20.5.1 Road, Drainages, Kerb and walkways

2,650

20.5.2 Electricity

1,700

20.5.3 Water

1,250

20.5.4 Security/Fencing

10,436

Sub Total 20.6

Contingency 5% for funding

Total

58,627.8

84,877.8 90,127.8

Site 1: (Fifty Eight Million, Six Hundred and Twenty Seven Thousand, Eight Hundred Naira only) Site 2: (Eighty Four Million, Eight Hundred and Seventy Seven Thousand, Eight Hundred Naira Only) Site 3: (Ninety Million, One Hundred and twenty Seven Thousand, Eight Hundred Naira Only)

PROPOSAL FOR INESTMENT IN REAL ESTATE DEVELOPMENT ATAN OTA, OGUN STATE OF NIGERIA.2008

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Phase II 20.7

Buildings

??

20.8

Cost of Funding

??

a)

10% Developers Loan

??

b)

19% Bank Loan

??

18.0. PROJECT FUNDING SOURCE 18.1

This project will attract funding from essentially 5 main sources:

18.1.1 Funding from Promoters 18.1.2 Funding from Financial Institution 18.1.3 Subscribers Funding 18.1.4 Estate Developers Loan from Federal Mortgage Bank of Nigeria 18.1.5 Mortgage loan via National Housing Fund Loan Scheme from Federal Mortgage Bank of Nigeria, to enable pay - off. This is achievable within 9 months.

PROPOSAL FOR INESTMENT IN REAL ESTATE DEVELOPMENT ATAN OTA, OGUN STATE OF NIGERIA.2008

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Proposal

Vineyard Properties Ltd is a fully owned Private indigenous company with interest and core competency in property acquisition, sourcing, development, trading, warehousing, real estate investment and Mortgage Origination. We are actively involved in the development of both residential housing scheme and commercial properties basically in Lagos and other parts of the country. As a going concern, we propose to you two options as follows 1. A simple investment of a stipulated amount payable in 5 years at once or by 3 installments; first maturity being after the 3rd year of investment. 2. Subscribing as a promoter of the Company and watch your investment grow with the company. Here, returns would be determined by the growth of the company in all the subsequent developmental projects to be embarked upon by the company and paid according to your stake in the holding structure. Summary Total Proposed Cost for the 1st Phase

=

Site 1 58,627,800.00

Site 2 84,877,800.00

Cost per plot

=

97,713.00

141,463.00

Site 3 90,127,800.00 150,213.00

Proposed Selling Price of a plot of land in the first phase of the Site and services segment of the proposal is N400,000.00 – N470,000.00 Once secured, we promise a minimum of 300% returns on your investment at the end of five years.

Future takes: We should learn to take full advantage of the opportunity that’s in that area as it gives a better proximity to Lagos as it is just a ten minutes drive from the Bells and Covenant University environs.

Appeal: I appeal to you sir, to consider the benefits accruable from identifying with this cause and partnering to midwife a new birth in property business on this part of the divide. Thank you

Afolabi Sam-Adeboye Chief Executive Officer

Vineyard Properties Ltd

PROPOSAL FOR INESTMENT IN REAL ESTATE DEVELOPMENT ATAN OTA, OGUN STATE OF NIGERIA.2008

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APPLICATION FORM N10, 000.00 (Ten Thousand Naira Only)

PERSONAL DATA Name of Applicant: .............................................................................................................................. . (Surname First) Date of Birth: ................................ Age: ............................... Marital Status: ....................................... . Place of Residence (Country / City): .................................... Residential Address: .............................. .

Sex: ..............................Tel No: ............................................ Mobile: .................................................. . Residential Tel. No: ................................................................ Next of Kin: .......................................... . ………………………………………………. Relationship: ................................................................. . EMPLOYMENT INFORMATION Name of Employer: …………………………………………………………………………................... Address: .................................................................... …. ........................................................................ . Office Tel. No.: ................................................... Fax: ........................................................................ . Present Status: .....................................................Date of Employment: ............................................... . Length of Service: ................................................Present Remuneration: ............................................. Nature of Business: ............................................... Occupation: ........................................................... . Names & Addresses of Previous / Existing Bankers: ............................................................................ . …………………………………………………………………………………………………………… ……………………………………………………………………………………………………………

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6. 7. FINANCIAL INFORMATION Salary p.a: ..................................................................................

Other Income: ....................................................................... . Family Income: ...................................................................... . Less Expenses: Commitment of Household: ............................................…. Commitment to Rent: ........................................................... . Commitment to Education: ................................................... . Net Available Income: ..........................................................

HOUSING NEED DISCLOSURE What is your housing objective? Investments

Residential

What is your housing goal? Acquire land for construction?

If yes, please give details below: ........................................................................................................ . ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Purchase of Already developed property?

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If yes, please tick property type as stated below:

Flat

Bungalow (Semi / Fully Detached) TownHouse

Duplex Please state your preferred location .............................................................................. . Your best alternative: .................................................................................................................. .

MORTGAGE PLAN Do you require mortgage? : .............................. Loan Amount required: ............................................. . Any Existing Mortgage(s)? :........................................ . (Yes/ No) if yes, please give details(please state clearly amount given as loan and the outstanding balance):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ………………………………………........... what is your mortgage tenor? : ……………………………. Do you require additional mortgage?: ......................... Mortgage Type (Social/Commercial): …………. ... ..... . ... . . . .. . . ... If social, Are a contributor to JHF Loan Scheme? If yes state your NHF contribution no; ................................... What is your repayment plan: ........................................... . Repayment Amount proposed: .................................... Full Address & Description of property to be mortgaged: ........................................................................................................................................ . What are you proposing as equity contribution? ............................................... . Name & Address of Guarantor( s): ......................................................................................................... .

I declare that the information provided above is true and there in no financial commitment or obligation that I have not disclosed. I also accept that in collaboration with Mortgage providers will arrange Insurance for Comprehensive Risk / or Special Personal loan Assurance (SPLA) with reputable insurance company. . 13

Name in Full: ........................................................................................................................................................ .

Signature: ……………………………………………..

Date: ……………………………….

FOR OFFICE USE ONLY

Date Received: ……………..

Ref No; …………………

Date Application Fee Received: .........

Initial & Date:………………..

Bank / Cheque no ............. Initial & Date: ………………

Pay slips Received Tax Clearance Received Other Documents Received Checked By ………………………………………….. Name

Signature & Date………………………..

Approval By .......................................... ……………. Name

Signature & Date………………………..

Comments:

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