Lagos — Managing Director/Chief Executive Officer of Cross and Churchill Estates Limited, Mr. Taiwo Ogunbodede, in this exclusive interview with SENOR CORRESPONDENT, Dada Jackson, bares his mind on the rapid development along the Mowe/Ofada axis, mortgage financing, land titles, among other topical issues.

Excerpts:

What is the latest development on Green Oak Estate?

Thank you very much. I would like you to know that development is still on-going at Green Oak Park. We are looking at a situation where the first set of subscribers will be able to commence development in the first week of December. Currently Green Oak Park is a 215 acre residential development and, as at today, we still have over 100 acres of land unsold. I must say that our sales are strategic in the sense that we are taking our time to sell because we have certain plans for Green Oak Park, which will accommodate future residential development plans where we intend to build and sell but this is being put on hold because of the current market trend and the financial situation in the country now.

So, we plan that in December by the grace of God perimeter fencing and other infrastructure would have been put in place, at least 60 per cent. And once 60 per cent completion has been achieved, we will then commence the sales of the other serviced plots at Green Oak Park. And I am sure that, at that point in time, the development on ground will be very much visible. However, I must mention that we have faced some challenges too around Ofada. Green Oak Park, I must mention, is not the only project we have in Ofada, we also have other projects like the Twin City phases one and two, while Green Oak Park is the third one. Also, we have Crest Hill Park in Ofada and to simultaneously develop these estates, I must confess is an issue given the level of funding that we have as at today. So, what we are doing is we are looking at a situation where we need to take our time and do proper planning by ensuring that the plots are sold and equally assure our subscribers that they are buying into a reputable development. I must also mention here that, as a result of the current economic crunch, must people are spending less on the purchase of houses. But I can assure our subscribers that buying into any of our estates will certainly give them peace of mind as a result of our reputation. Let me also state here that we are at the last stage of obtaining a certificate of occupancy (C-of-O) for our subscribers and hopefully by December this should be in place.

Perhaps, you would like to mention one or two major challenges that you are facing as a developer in that axis?

Yes, we have challenges that are confronting us now. Number one challenge is that, for any project, you need massive patronage and like I mentioned earlier on, the current economic situation in the country has not helped the purchasing power of the subscribing members of the public. Even though things are picking up gradually because there is a limit to how much you can hold money in your hands, anybody who has money now should think of investing it properly and sensibly. But again, more than ever before, subscribers are also very wary now on how to spend their money, which is good for us (developer), However, we pray that at the end of the day, as soon as the economy improves, and people have more money to spend, they will buy or invest in real estate. Another major challenge is that of putting in place infrastructure; of course, everything has gone up, so there is the tendency for price modification, price difference in respect of our sales (of plots). But even with that, we still have taken our time to ensure that the prices we came out with initially are the same. I mean, we are not altering our prices.

This is just to keep faith with our subscribers. Also, again we hope that the authorities in Ogun State will give us the kind of support that we need. We are looking at a situation where government can help us in our documentation and also ensure that the processing of C-of-O and other title documents is seriously fast-tracked. Once this is done, it will help us in no small way and also the subscribing members of the public. Another way the government can help is by providing infrastructure. Today, all our projects are located along the Sagamu-Papalanto Expressway but today, the road is fully tarred. We need a scenario where we will be able to hire equipment because the cost of acquiring equipment is high. We are looking at a situation where the Ogun State government can have a directory of developers along the axis and assist us by hiring some of these equipments at reduced cost. Also, the state government can help in reducing the cost of clearing of sites, mapping out of sites and other technical work. We are hoping that all these would fall in place.

When are you going to commence physical construction on your sites or are you going to just leave it as a sight and service scheme?

Yes, we are going to build our own houses. As at last year, we were looking at starting this last quarter (of 2009) but given the financial meltdown in the economy because for that kind of project, you need a huge sum of money, but the economic crunch has actually affected our ability to access funds from financial institutions, that in effect has slowed us down considerably. Be that as it may, we are looking at a situation whereby next year, I mean before the first half of next year, I am sure that development will commence. We are looking at about 100 units to start with. I mean 100 units of affordable two-bedroom, very functional flats where civil servants, middle income earners, businessmen can key into this project. The front area of Green Oak Park has been reserved for this project (the two- and three-bedroom functional flats).

Have you suspended work on your Twin City project or what is actually happening?

Yes, Twin City one and two project is still very much on course. What we are trying to do is to see if we could simultaneously develop Twin City phase two and Green Oak Park. This, as you know, will involve a lot of money. Twin City phase two is a small development (about 20 acres) about 100 plots. What we promised our clients in that estate is not much, just perimeters fencing and earth roads. What we have is Twin City phases one and two is sight and service scheme arrangement, we don't intend to build there. For Twin City phase one, we slowed down work on it because we had an issue of encroachment with a fellow developer which is being sorted out.

This development greatly affected work on the site. Be that as it may, for those that have subscribed to Twin City phase one, who has been paying all along, but who intends to move into Green Oak Park can do so, because our aims and objectives are to meet clients demand at any point in time. Apart from Twin City phases one and two as well as Green Oak Park, we have invested hugely in Ofada. Let me state here that some of our subscribers who intend to start building could be moved to Green Oak but they will have to pay some premium because Green Oak Park is primer. All we are trying to show is transparency and integrity that when you buy from us, don't imagine or think that you will lose your money because we will always be there to ensure that you take hold of your plot and that, indeed, we deliver the plot to you. Let me quickly mention here that we also have a project in Akure, Ondo State, a seven-acre development along the Akure-Owo Expressway, which is called Crystal Rock City Garden. We also have a project at Ikorodu called the Old Town Park.

Why Old Town Park for Ikorodu, what informed the choice of that name?

Yes, as you know, Ikorodu is an ancient place and we are trying to give a name that matches the heritage and the strength of Ikorodu; that is what informed the name, Old Town Park. It is a site and service scheme. We are also planning at doing more projects at Ikorodu because, really and truly, our focus there is sub-urban development to decongest the current Lagos, take the current Lagos outside Lagos. That is what we are doing currently. Also, very soon, we are looking at doing something at Agbara in Ogun State.

What is your take on the Land Use Act, are you in line with those advocating a total abrogation or you share the views of those calling for an amendment?

Amend. You can abolish it. It is not every aspect or section of the Land Use Act that is condemnable, certain part of it commendable.

But the issue of getting consent, the bureaucratic process involved, the huge administrative charges, is the real issue. More than even the consent issue, the government machinery; how do you get the consent in a record period? Don't forget that the Lagos State government has said that you can get consent in 30 days. The question is, is it practicable? In other states it could take six months, one year or even two years. I will appeal to the National Assembly to take a critical look at the issue of land ownership and the ones of securing consent. These are two key areas. Once those areas can be sorted out, then we don't really have any problem with the Land Use Act.

How do you see mortgage as an instrument for home ownership in Nigeria?

There is no government or any country that would develop without having a very viable mortgage system in place. You don't expect that people would put down their entire life savings and use it to build their homes. If they use their life savings to build their homes, what are they going to use to feed themselves? All countries that have developed or are developing, name a viable mortgage system. So, there is no gainsaying that mortgage is a necessary tool for development. Indeed, if Nigeria is going to go to the next level, it needs a viable mortgage system. It is not a mortgage system of five, 10 years like it is being done in the country; we need a long term mortgage system - say 25 to 50 years. And in that way, each person can actually own his own home. One of the indices you can use to determine a developed country or a developed land space is to find out the number of people living in their own homes.