During the commissioning of Afriland Towers (formerly Raymond House), the Chairman of Heirs Holdings, the parent company of Afriland Properties and Governor Sanwo Olu of Lagos State, revealed that plans to redevelop the recently terminated Falomo Shopping Centre will be revived. He also iterated that plans for the 600 room Transcorp Hotel, originally announced in 2015 are currently underway.

In July 2013, Afriland Properties signed an agreement with the Lagos State Development Property Corporation (LSDPC), acting on behalf of the Lagos State Government, to redevelop the facility into a modern mixed-use complex with office and retail components.

 

A Special Purpose Vehicle (SPV) – Falomo Shopping Centre Development Company Ltd. was later established for the redevelopment and maintenance of the shopping centre on a Build, Operate and Transfer (BOT) basis.

Afriland Properties paid N50m to LSDPC for a 50-year lease of the prime Ikoyi site as an expression of interest in the redevelopment of the project. The LSPDC would have also received a 35% interest in the SPV for its land contribution. Afriland Properties also said it planned to spend N30 billion for the development of the project.

However, on August 19, 2015, The immediate past governor of Lagos State, Akinwunmi Ambode, terminated the agreement because it was discovered that the concession was “grossly detrimental to the interests of the people of the State”.

In a statement responding to this, Uzo Oshogwe, the Managing Director of Afriland, said the company said it did not commit any misconduct contrary to the claim of the state government. It further stated that the ₦50 million was not for the concession of the property but “for an expression of interest in the redevelopment project”.

The redevelopment of this shopping centre will compete with the upcoming c. 7,000 sqm. Ikoyi Plaza located further down Awolowo Road at the Keffi Street Junction.

We are currently unsure about the building specifications of the new design and there has been no official release from Afriland Properties yet. We hope the new design takes into consideration, the traffic congestion around Falomo and creates better means to access. Meanwhile, trust us to keep you abreast as more information becomes available.