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Why The Rich Are Buying Up Properties In Ibeju-Lekki

Many investors called it “The New Lagos” due to the immense economic potential of the region. However, the
geographical space referred to as
Ibeju Lekki was once an obscured
agglomeration of villages dominantly of
Fishermen and farmers. But today, to
say the fortune of the land has changed
could be an understatement as Ibeju
Lekki has emerged to be the leading
investment destination in West Africa.

Sitting on 455 km2 of land on the
Eastern end of Lekki Peninsula and
bordered by the Lekki lagoon and the
Atlantic ocean, Ibeju-Lekki is one of the
LGAs which makes up the envisioned
Lekki mega City, and the area is fast
becoming a central business hub for
manufactures, Real Estate dealers,
Tourism-prenuers and a host of other
flourishing business concerns.

According to a community chieftain who had lived in the region for sixty years, Ibeju Lekki has not always been this open to business and developments because of the topography which made it difficult to dominate. He said, “There was a time in history when some indigenes of these community would rather claim to be from other surrounding communities because at
that time the area was at the middle of
waters with no form of development.
Apparently, a journey through the
breath of the area from Ajah to Eleko
Junction and beyond will show even
the untrained eyes that it is a city still
under construction, albeit a fast paced
one with glaring opportunities. One
recurring image that cannot be missed
are sign boards advertising various
landed properties with such catchy
phrases that encourages you to “Own a
piece of New Lagos” Although the real estate market here appeared to be without formal structure but that is not affecting the huge volumes of land transaction going on daily in Ibeju Lekki.

 

One major trend observed is that
many wealthy investors are selling up
some of their properties in the plush
and highly expensive neighborhoods
of Lekki phase 1 & Phase 2, Ikoyi and
Victoria Island, and the proceeds are
invested in buying properties in the
newly developing Ibeju Lekki region.

A major real estate investor who just
concluded such a deal simply explained
it this way, “it is simple calculation my
brother, the old market Is saturated
and has little to offer in the long term
profits. For instance, if I want o buy
a plot of land along the expressway
in Lekki Phase 1, I could pay above
N500m for it, and in five years that
piece of land may not give me up to
10% ROI, But if I invest that same
amount buying properties in some parts
of Ibeju Lekki, the profits in 2 years
could be up to 50%”

An industrialist who also spoke on
the issue highlighted that Ibeju Lekki is
the only remaining part of Lagos where
investors can find large expanses of
land for huge projects, hence the fast
pace development being enjoyed as
most investors who come to Nigeria
prefers the area.

 

While a few of the indigene of these communities trusted their good fortune to be an act of benevolence from the ancestors of the land, many others pointed out that the fast development of the area could be traced to the adept implementation of the Lekki Master plan which in turn gave adequate attention to the development of the Lekki Free trade zone.

As experts continue to forecasts a steady increase in commercial activities within the area, below are a brief look at some of the huge projects driving up the value of Ibeju Lekki.

 

The Lekki Free Trade Zone, LFTZ
The Lekki Free Trade Zone is touted by many as the single most important catalysts which spurred on the fast
development of the IBEJU LEKKI Axis, and this could not be far from the truth.

In early 2006, the Lagos State government completed a Master Plan for a Lekki Free Trade Zone, covering a total area of 155 square kilometers at the eastern end of the peninsula, bordered by 5 kilometers of coast line. In essence, by May 2006, the Lekki Free Zone Development Company (LFZDC) was established as a Joint Venture Partnership vehicle between a consortium of Chinese Companies by the name China-Africa Lekki Investment Ltd (CALIL), and the Lekki Worldwide Investments Limited [LWIL], owned by the host government, With the former owning 60% stake while the LWIL owned 40% of the venture.

As of the time of this report over 18 mega factories are presently running within the zone, and about 100 investors are said to have indicated interest to commence operation within LFTZ before the close of the decade.

The Dangote Refinery and Petro Chemical Situated on an estimated 2,500 hectares of land within the Lekki Free Trade Zone, Lekki, Lagos State, the Dangote Refinery and Petro chemical Company is the biggest single project in the Ibeju Lekki corridor estimated to have gulped over $12bn as at August 2020.

Apparently the most audacious project to be undertaken by the Dangote group in recent time, the refinery is designed With a single crude oil distillation unit and it will be the largest single-train refinery in the world with a capacity to process about 650,000 barrels of crude oil daily, and at full throttle, the facility will be able to produce 50,000,000 litres of gasoline and 17,000,000 litres of diesel daily, and will meet all domestic needs with a surplus for export.

According to information from Dangote group, the project estimated to cost up to $15billion at completion, with $10 billion dollars invested in the refinery, $2.5 billion in the fertilizer factory, and $2.5 billion will be spent in constructing
pipelines.

Although construction works has
gone really far at the site of the refinery
as observed by Lekki People Magazine
reporters, but it is widely believed
among pundits that the refinery may
not come to use before the last quarter
of 2020, while the Petrochemical plants
will be commissioned before June 2018.

From our investigation the Dangote
refinery project has remained a top
investment priority for many Nigerian
oil moguls, and many of the biggest
investment players in the country
have all silently sunk in billions of
Naira on the project, including the
federal government and many state
governments in the federation.

Also located in Ibeju Lekki is the
monumental edifice of the Eleganza
Industrial City limited sitting on 35 hectares of land along the Lekki-Epe
Expressway, a stone throw from the
Lekki Free trade zone.

 

 

For many decades, the Eleganza
signature has remained one of Africa’s
most enduring household brand, and the take off of its multimillion dollar industrial city which is among the largest of its kind in Africa, is expected to spur on a new phase in the development of the region.

Lekki Deep Seaport Coming at an estimated total cost of $1.5 billion funded by local and international investors, the Lekki Deep Seaport project is a multipurpose seaport at the heart of the Lagos Free Trade Zone which is highly expected to complement the economic activities in the corridor and also provide enormous support to the West African market.

The Sea Port has renewed strong optimism among Nigerian business people who imports their cargoes to neighbouring ports for discharge. At completion, the Deep Seaport which is expected to be fully ready in 2022 is targeting about 1.5 million 20-foot container capacity annually and this is expected to increase to about 4.7 million containers when its operations hit full speed.

The Lekki deep seaport, will be the first Nigerian seaport to operate consistent 24hrs operations as plans have been concluded to ensure steady electricity supply from a dedicated power plant of 30MW capacity plus a 10MW emergency plant dedicated solely for the use of the port.

 

The seaport is expected to generate about 170, 000 direct and indirect jobs,
while also completing the Lekki Airport
facility to promote the movement of
goods into and out of Ibeju Lekki.

Lekki International Airport Also located in Ibeju Lekki, the site for the proposed Lekki International Airport is just about 10km from the Lekki Free Trade Zone, LFTZ.

 

According to information at Lekki People’s magazine disposal, the Airport is to be constructed on 3,500 hectares of Land and it will have the capacity to handle five million passengers annually with scope for future expansion.

However this particular project did suffer a little setback following agitations from the host communities, and the long delay to release funds by the contractors.

According to an insider who spoke to
Lekki People magazine, the Lagos state
government has already settled all rift
causing the delays to the take-off of
works on the site as construction work
is set to begin immediately after the
general elections. With eyes on the
future, the airport was also designed to
drive urban development and tourism in the Lekki-Epe axis of Lagos state.

Planned Estates According to a reliable source at the Lagos state ministry of Works, presently there are about two hundred registered estates in Ibeju Lekki with many of these numbers already completed and functional as the human population continued to soar higher in the region.

 

Beaches and Resorts Apparently, the most scenic element of the region given its long stretch of Atlantic waterfront which rises unto a warm sandy beach, more and more private beach resorts are springing up in Ibeju Lekki to offer first rate services to tourists.

 

Apart from the popular beach resorts like Lacampagne Tropicana Beach Resort, Honeyland Beach Resort, Chaka Resort, and Jara Beach Resort, there are also more than 30 private beach resorts in the axis that are already functional and adding value to everyday life in Ibeju Lekki.

 

Culled from: Lekki People Magazine

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