Wemabod, a real estate firm, has signed the ‘Wemabod Financing SPV Limited N50bn Bond Issuance Programme’. Speaking at the signing event in Lagos, Wemabod’s Chief Executive Officer, Yemi Ejidiran, stated that the cash would be utilized to help transform Unity House at 37 Marina from a commercial rental to a mixed-use property.
According to Ejidiran, the project aims to revitalize a historic monument while also promoting residential growth in Lagos State’s major business center.
While acknowledging that establishing a residential sector in the central business district would shorten commute times, Ejidiran expressed hope that the project would spark other projects that would revitalize other central business districts around the country.
He stated, “This is a signing ceremony for the cash that Wemabod is attempting to raise through the financial market to assist the creation of Unity House. Unity House is a 31-story building at 37 Marina, Lagos”.
According to him, the company was utilizing the opportunity as a springboard to kick off the revitalization of the central business area. He stressed that investors seize the opportunities that this development will present. The benefit is that people can stay close to their workplace.
According to the corporation, the N50 billion would be raised in stages, with N4 billion set aside for the first round. The funds would be used not only to redevelop Unity House, but also to build a mixed-use property in Ikorodu with a mall and other recreational facilities, as well as other identified properties in Ikoyi, Lekki Phase I, and Ikeja, among other places.
Wemabod Financing SPV Limited, a Special Purpose Vehicle, has been established to raise funds from the market. The SPV consists of two independent share trustees: FCMB Trustees and PAC Trustees.
GoldBanc Management Associates (the deal’s principal issuing firm) developed the bond details, while TOLG served as the deal’s legal counsel. Olu Abayomi, Managing Director of GMA, stated that the bond was built to allow an interest rate range of 17.5 to 18.5 percent, given the 16.5 percent accruable to FGN bonds.
Michael Orimobi, Managing Director of TOLG (the deal’s legal counsel), expressed confidence that a firm of Wemabod’s stature would gain enough investor trust to raise the sums required for the specified projects.
