Safetrust Mortgage Bank Limited said it has given financial support to Macbosh Properties Limited to fully refund the investment made by Mr. Kunle Ogunmefun on its Safetowers project.
This was disclosed in a statement by the Head, Marketing and Corporate Communications of Safetrust Mortgage Bank Limited, Mr. Maurice Ibie.
Ibie disclosed that Macbosh Properties Limited had entered into a commercial transaction with Ogunmefun on Safetowers located along the Lekki – Epe Expressway.
He said the statement became necessary in the light of conflicting reports making the rounds in some sections of the media.
According to Ibie, “Safetowers consists of three high-rise blocks of flats, and pent house duplexes. Ogunmefun indicated interest in the project and subscribed to a block which has 16 units of three bedroom apartments and two units of five bedroom Penthouse duplexes.
“The estimated construction and delivery time was for a period of 24 months at a total price of N710,000,000”
He reiterated that Ogunmefun had previously bought some units in a previous development “Safecourt Apartments” financed by Safetrust Mortgage Bank, which was more than twice the size of Safetowers in monetary terms. The project was developed successfully and delivered accordingly.
According to the statement, it was mutually agreed with Ogunmefun under the terms of Memorandum of Understanding (MoU) executed between Macbosh Properties and Ogunmefun that on receipt of the entire sum Macbosh Properties would complete the property within a time frame of 24 months.
“However contrary to the terms of the MoU, the total sum was not paid up-front, rather the sum of N550,000,000 was paid in tranches through a company called Currant Limited,” the statement added.
The bank alleged that “despite the breach of agreement by Ogunmefun,” Macbosh Properties in good faith commenced the construction of the property in line with its obligation in the MoU but that the economic crisis that bedeviled Nigeria in 2015 led to hike in construction.
It added that “if Mr. Ogunmefun had paid at the agreed time, the unnecessary delay would not lead to hike in construction cost.”
The bank stated that while it was not normal practice to make refund without selling any property or getting a new buyer, Macbosh Properties had proposed that a refund of payment till date be done in two instalments “and it showed faith to make an initial payment of N275,000,000 despite not having resold the units.”