Land joint venture
Lekki Phase 1, Lekki, Lagos
Joint venture opportunity --- prime residential development (50:50)
opportunity summary
- land size: 1,180 sqm
- land valuation: ₦1.8 billion
- title: certificate of occupancy (c of o) --- clean and available for verification
- proposed scheme: 12 high‑quality units (combination of terraces and maisonettes)
- jv structure offered: 50:50 profit sharing (landowner : developer)
- premium: ₦80,000,000 payable to the landowner (terms negotiable)
why this jv is an exceptional play
- institutional‑grade land: c of o title and an already valued land parcel make this transaction finance‑friendly and low‑risk from the land side.
- ready project scale: 12-unit scheme on 1,180 sqm is ideal for a boutique gated development --- easy to market to mid‑to‑high end owner‑occupiers and investors.
- fair equity split: landowner contributes land as equity; developer provides construction funding and management --- equal 50:50 sharing aligns incentives and simplifies exit.
- attractive up‑front premium: the ₦80m premium secures the landowner's commitment and demonstrates the vendor's readiness to transact.
- strong demand profile: terraced homes and maisonettes remain high‑demand product types in urban nigeria --- quick sales possible with good design and marketing.
suggested jv mechanics (flexible & negotiable)
- land contribution: landowner contributes the 1,180 sqm plot valued at ₦1.8bn as equity.
- developer contribution: developer funds hard and soft construction costs, sales/marketing and project management.
- premium: developer pays ₦80m premium to landowner on signing of heads of terms (or staged as agreed).
- cost recovery: developer recovers construction cost and agreed development fee from gross proceeds.
- profit split: remaining profit distributed 50:50 between landowner and developer after cost recovery and taxes.
- governance: establish a jv/spv, appoint a project manager (developer usually), produce periodic accounts and independent auditor for transparency.
- timing: typical delivery window 12--24 months depending on design and approvals; phased sell‑off permitted to improve cashflow.
what we recommend including in the heads of terms
- clear definition of deliverables and scope (unit mix, spec and finish levels)
- detailed costing and cashflow model (prepared by the developer's qs)
- payment schedule for the premium and milestone payments (if any)
- construction timeline with liquidated damages for delay (if agreed)
- exit mechanisms and buy‑out terms (should one partner wish to exit)
- dispute resolution and governance arrangements
buyer/developer benefits
- a bankable land contribution via c of o --- simplifies financing approvals.
- balanced risk allocation: developer controls construction risk; landowner retains upside via 50% share.
- fast to market: relatively small scheme with strong sellability; opportunity to capture premium pricing with attractive finishes.
- flexibility: product mix and specification can be optimised by the development partner to target highest yield segments.
due diligence & next steps
- site inspection and technical survey (topography, soil test)
- legal due diligence on c of o, survey and chain of title (we will provide documents on request)
- architectural concept and preliminary cost plan (developer to prepare)
- submission of heads of terms / loi by interested developers
- execution of spa for land (as needed) and formal jv agreement / formation of spv
this is a tightly‑sized, high‑value development parcel with a simple, equitable jv structure. for a competent developer, this project can deliver rapid sales, excellent margins and a straightforward 50:50 partnership. act now to secure first refusal.
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More details
₦1,800,000,000
The Build Centre Properties
09028190510