Daily Independent (Lagos)
Dada Jackson
9 October 2008
Lagos — Refuge Home Savings and Loans Limited company has repositioned by increasing its share capital by about 150 per cent from N400 million to N1.185 billion.
Its Managing Director, Mr. Sola Olubode, said that was done in line with the challenges facing Primary Mortgage Institutions (PMIs) in the country in respect of the supply of credit by the Federal Government.
He dropped the hint in an interactive session with media executives to announce the new policy thrust of the company.
According to him, such challenges called for a total overhaul of its business plan, a financial and product/service repositioning to adequately meet the evolving market place and changing needs of its customers.
Olubode said that the repositioning was a total housing finance solution initiated by the company in response to the compelling desire to change the landscape of mortgage banking especially in the continent of Africa.
He pointed out that the company's motivation is to deliver affordable housing accommodation to its customers on a regular basis through a well thought out funding arrangement.
He noted that exponential growth in the demand for homes occasioned by the re-emergence of the middle class and this demand would cause an increase in the prices of properties, which would in turn, open up new areas and concepts of developments that are more affordable.
Olubode said that as real estate represents a viable alternative to all other asset classes and a natural hedge against inflation, Refuge Homes Savings & Loans will adopt a rigorous and disciplined process for sourcing and investing in identified projects
According to him, in order to meet the demand, there will be an evolution of housing financing model that fuses mortgage loans, estate developments and construction finance, a model that will create an aggressive market for mortgage products because it offers sustainable and optimal return at minimal risk on long term fund generated.
"Refuge Homes has in place, an integrated housing solution meant to provide affordable, quality and economical properties to customers on regular basis. An added advantage is that the company will operate in the most populous country in Africa with an estimated 16 million housing deficit and plans to improve infrastructure, which will further fuel demand." he noted.
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