Featured, Latest Housing News, Latest News, Trending News

Sterling Bank Ahead In Combating National Housing Deficit

Sterling Bank Plc has adopted unique strategies to increase the nation’s housing stock.  

The huge deficit level in Nigeria’s housing sector is worrisome. As at 2012, experts estimated the deficit to be at a minimum of 17 million units and recently raised an alarm that the figure could be up to 25 million units if a proper investigation of the state of affairs in the sector is undertaken. Worse still, experts say the majority of Nigerians live in blighted areas that are unfit for human habitation.

Affirming this, Minister of Power, Works and Housing, Mr. Babatunde Fashola, disclosed that Nigeria has been contending with a huge deficit in the housing sector over the years. He decried the current situation which effectively enables only one percent of the Nigerian population access mortgage facilities, saying it is extremely low relative to a country like the United Kingdom with 77 percent.

Fashola expressed concern that the deficit is apparent both on the supply and demand sides. According to him, it is not just that the housing situation is grossly inadequate to satisfy the needs of the population, access to mortgage is also inadequate. The minister noted that financial institutions have allocated barely one percent of their loan portfolios to housing and about 11 percent to construction in the last 30 years.

Against this backdrop, it is commendable that Sterling Bank Plc is partnering with real estate development firms to reduce the country’s housing deficit. The bank’s housing sector interventions are being executed by its Commercial, Institutional and Non-Interest Banking Groups through partial and full financing of viable real estate development projects across the country.

Click here to download Abuja International Housing Show Mobile App

At the 2018 City People Real Estate Awards, Sterling Bank Plc was named the most Real Estate Friendly bank of the year for the significant role it is playing in the housing sector. The innovative model the bank has adopted to cater to the demand and supply sides is noteworthy. As a member of the Nigerian Mortgage Refinance Company (NMRC), Sterling Bank has been able to mobilize funds for home-finance/mortgage refinancing.

While receiving the award, Basheer Oshodi, Phd, Group Head, Non-Interest Banking, Sterling Bank Plc revealed that the bank has committed significant resources to the real estate development sector to ameliorate the impact of the huge national housing deficit on citizens across different socioeconomic classes. According to Mr. Oshodi, judging from the impact the bank has made in retail real estate financing, it is ready to provide credit to real estate developers who adopt prudent project selection and management models.

Some of the housing estates include the part-financing of Crown Court Mabushi in Abuja for Crown Realities Plc. The project comprises 72 units of 3-bedroom flats, 18 units of 4-bedroom semi–detached houses and 16 units of detached 4-bedroom houses.

Prior to this, Sterling Bank had part-financed the prestigious Crown Estate in Lekki, located on a 41.7 hectares gated private estate along the LagosEpe Expressway in 2000.

Other residential projects part–financed by Sterling Bank in collaboration with developers include Diamond Estate, Amuwo Odofin, Lagos; 360 low-cost housing units for Diya Fatimilehin & Co., Friends’ Colony Estate, Lekki Lagos; a 210 semi–detached and detached housing units for Aircom Nigeria Limited, Common Wealth Court, Lekki; 36 apartments of Defacto Properties Limited and Bourdillon Court Estate, Lekki, Lagos comprising 192 housing units (flats and Terrace houses) for Aircom Nigeria Limited.

Others are Cromwell Court’s 180 units of apartments; Milverton Estate’s 240 units of apartments, Northern Foreshore Estate’s 566 mixed housing units; Napier Garden’s 220 mixed housing units, all for Aircom Nigeria Limited in Lekki, Lagos and Tarino Towers’s 29 units of apartments for FMT Parkview Limited located in Ikoyi, Lagos.

Get your daily housing news on your mobile phone : Download from Google Play Store Now

Sterling Bank also partfinanced Visage Apartment’s Victoria Island Lagos, 40 units of apartments for Sat Leasing Limited on Victoria Island, Lagos; Primewaterview Gardens’s, phases I & II 539 units of apartments for Primewaterview Ltd in Lekki Lagos; Eko Court, Parkview Estate’s,12 units of apartments for Samtl Properties Ltd in Ikoyi, Lagos; Happy Haven’s Banana Island’s 16 units of apartments for Samtl Properties Ltd in Ikoyi, Lagos; Doby Haven’s 20 units of apartments for Eco Building Ltd in Lekki, Lagos and Pearly Gate Estate’s 40 mixed housing units for Edward Properties Konsult.

The bank has also wholly financed another residential estate for Crown Court in Durumi, Abuja which was inaugurated recently by the Minister of the FCT, Mr. Mohammed Bello.

Managing Director and Chief Executive, Crown Realties Plc, Mr. Darl Uzu, commended Sterling Bank for stepping in to provide critical financing for development projects in the country, particularly in a period of recession. Uzu said the financial institution has proven to be a dependable partner in times of need for Crown Realities Plc.

“At the height of the recession when funds were scarce and investors’ confidence was at its lowest, Sterling Bank stood by us and extended credit to finance our operations,” he said, adding that Crown Realties will not disappoint the bank and will do everything possible to further strengthen the confidence reposed in the company. “We’ll always do our part every time.”

Extending its successful Public Private Partnership model into the real estate development sector, the bank financed Sterling Court Housing Estate in collaboration with Lagos State Government through Agboyi-Ketu Local Council Development Area.

Conceptualised by the concessionaires in 2009, Sterling Court is located within Ajelogo Housing Scheme in Alapere, Lagos. It consists of contemporary apartment building designs, ultra-modern terraces and duplexes which meets housing needs of middle class families. The housing project covers the construction of 40 blocks of 320 housing units, commencing with 26 blocks of 116 housing units in the first phase in 2017.

Bennett Oghifo

Follow Us on Social Media
Previous ArticleNext Article

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »

You have successfully subscribed to our newsletter

There was an error while trying to send your request. Please try again.

Housing News will use the information you provide on this form to be in touch with you and to provide updates and marketing.
%d bloggers like this: