Ikoyi Building Collapse Update – What to learn as a buyer

Ikoyi is the most affluent neighbourhood of Lagos, Wikipedia tells us some of its exclusive suburbs, known globally around the World as part of the most expensive land. These include suburbs of Banana Island, Parkview Estate, Mojisola Onikoyi Estate, Osborne Foreshore Estate Phase I & II, Dolphin Estate etc.

With Ikoyi Collapsed building, here is what we learnt

This Popular Island is known for the extreme upper-class residents of Nigerian society. It is originally, the British Colonial Governments designated residential areas one of the wealthiest communities within Nigeria. With average new apartment selling for US$1.5 million,  reaching as high as $10 million.

The most prestigious address such as Bourdillon Road, Alexander Road and Gerrard Road, covering Embassies like the Embassy of France, the Embassy of Iran, the Embassy of Iraq etc.

With this in mind enters a very hyped up development, the talk of the town, an international developer, Femi Osibona who has built across the globe is in town !.

Has built-in UK, USA, South Africa and finally comes home to build a state of the art ‘Dubai Style’ super luxury high rise. For the super-wealthy who can afford to pay dollars. Originally, the British Colonial

Ikoyi building collapse update so far:

• The 2 sister buildings attached are now to be demolished under controlled demolition as they also failed Various structural integrity tests.
• The development company are to be charged for criminal offences over the loss of lives. Along with engineers, town planners, and architects; Also the Architects Registration Council of Nigeria for their roles in the collapsed building as well as some indicted companies such as the urban primer etc.
• The construction of the 3 high-rise buildings at Gerrard Road, Ikoyi, Lagos commenced even before provisional approval was granted as stated by (LASBCA)
• FourScore Homes Limited is owned by property developer, Femi Osibona The 3 building, 360 degrees comprises two 15-storeys towers and one 21-storeys tower with 39 units of  400sqm maisonettes on 3 floors, 600sqm – 800sqm penthouses, and 400 sqm 4 bedroom flats.
• Prices of these apartments as at the beginning of the project started from US $900000 dollars, however, the starting price is currently at US $1.2 million dollars to US $1.53 billion before the collapse with 61% sold out.
• Client/Developer: Fourscore Homes Limited;
• Main Contractor: Fourscore Homes Limited; making them both architect and also builder.
• The structural engineer pulled out of the project as 4 floors become 21 floors
• Site closed down by LASBCA due to a failed structural integrity test but later reopened
• He was arrested alongside his wife and staff for contravening certification and planning laws
• The developer was released and went back to building
• Femi Osibona, the owner of Fourscore Homes, is one of the 45 persons who have so far been confirmed dead.

What to learn as a buyer:

1. The fact that you are an international developer makes no difference if there is NO track record in the country of sale.
2. Every country has its own Building regulations and legal compliances to guide each builder, with severe financial consequences and criminal charges if not followed, eg. the UK. Which has heavy penalties including imprisonment if you are found in breach of the law.
3. Nigeria’s judiciary system has always been controversial, with Lagos State Building Control Agency (LASBCA) having its fair share. Law on the side of the rich than the masses
4.  Some Lagos developers have built without approved structural plan an example is Lekki Gardens, which coincidentally did the same as Fourscore i.e raising apartment floors beyond legally approved structure by the government.
5. Non-adherence to designs, lack of comprehensive subsoil investigation before designs are done, illegal conversion or alterations to existing structures, and use of quacks or unskilled builders.
6. Buyer has therefore got to do their due diligence on developer before investing in their projects
7. What is their track record of building and delivering in the Country of sale, NOT other countries
8. Who are their financial backers, insurers etc?
9. What are the public reviews on developers?. Visit their developments to be satisfied
10. Have your own lawyer and legal adviser to do land search, review building approvals etc before you buy.
11. 3D images and prototype videos, brochures, celebrity marketers are NOT to be relied on
12. When a price is too good to be true it most likely is
13. Ask questions: Is the price quoted for completion of built as promoted or is the price just for a shell? etc
14. Use a reputable agent Like MercyHomes which offer tailor-made services, mortgages, brokerage etc
15. Do NOT rely on developers lawyer but get one that is representing your interest solely.

2022 year of bargain buys and high returns

Firstly, for Diasporans it means to be extra careful and diligent in your research before you let go of your hard-earned cash.

Secondly, with the high inflation and exchange rate of N700+ to £1, the Nigerian property market is looking to Diasporans to invest and rightly so.

Most importantly, many offers are available, from land to residential, commercial, REIT, etc.

call Angel now! +447956168784

In conclusion, we wish all our clients, all diasporans and Home-based Nigerians a fabulous and prosperous healthy year!.