Workers are set to resume the redevelopment of the Falomo Shopping Mall, Ikoyi before the year runs out. But Afriland Properties and Lagos State Development and Property Corporation (LSDPC) may be having talks about changing the agreed terms for this project.
While making a statement about the resumption of this project in Lagos on Tuesday, Chief Financial Officer (CFO) of Afriland Properties (formerly UBA Properties) added that his company and the Lagos State Government are renegotiating the terms of the concession. This comes after Lagos state Governor, Akinwunmi Ambode cancelled the concession of the Falomo shopping centre in August.
The Lagos state governor cited the terms and conditions of the agreement, stating that they “are grossly detrimental to the interest of the people of the state”. He also added that only N50 million was paid by the concessionaire for a 50-year lease of the property belonging to the state government. However there is also the question of whether this development which ought to have become a state-of-the-art shopping mall along with an office complex and luxury residential apartments is still on the table, and just how long the project will take.
In July 2013, Lagos State Development and Property Corporation (LSDPC), entered into an agreement with Afriland Properties Plc, a member of Heirs Holdings Group,founded by Mr. Tony Elumelu to redevelop the shopping centre, but no completion date was given for the project.
The following year, the consumer market craze in Africa caught up with the Lagos State Government as Governor Babatunde Fashola joined the likes of Shoprite to plan the development of more shopping malls and complexes in the state. He hinted this at a meeting with Global CEO of Unilever, Paul Polman while also expressing his optimism that more shopping centres would spike demand for goods by manufacturing companies, eventually leading to job creation.
“We are supporting the development of more malls and shopping complexes. Apapa has just opened and in about 10 years we have had Ikeja, Lekki, and Adeniran Ogunsanya. We hope that it will represent a major demand pool that will stimulate you to give more supply and in that way employ more people,” he said. But amidst these plans there were also concerns that LSDPC and Afriland Properties were going back on their agreement to redevelop Falomo Shopping Mall.
The old Falomo shopping centre lost most of its tenants due to poor facility management, leaving only Quintessence-an art shop, and the Glendora bookshop. Both shops eventually moved out upon the signing of the concession agreement in 2013.
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