TAARD $40,000,000 Crowdfunding Programme Via A Convertible Debt
Disclaimer
This Information Memorandum is issued by MBC Capital Limited to provide certain information about an investment opportunity in the Nigerian Luxury Properties Market through The Afropolitan Alpha Residential Development (“TAARD”) and is intended mainly for the purpose of giving information to a select group of individuals regarding the Investment opportunity.
This Information Memorandum is not an invitation to the general public to subscribe but to those select group of individuals that have been invited to invest in line with the terms and conditions contained in this document. The information contained in this document is for the use of the addressee(s) only and it is expected that all information contained herein or subsequently disseminated would be kept safe and confidential. Unauthorized access and/or duplication of this material is illegal.
This application has not been filed with the Securities & Exchange Commission (“SEC” or the “Commission”) for clearance of this Information Memorandum. The Commission has also not issued any regulatory statement regarding the accuracy or adequacy of the Memorandum. Also, no application has been made to any Exchange for permission to deal in or for an official or other quotation for the Investment.
Furthermore, the material facts contained herein are true and accurate in all material respects and having made all reasonable inquiries, to the best of its knowledge and belief, there are no material facts, the omission of which would make any statement contained herein misleading or untrue.
Executive Summary
Market Overview
- Nigeria’s real estate sector has shown remarkable resilience, growing by 6.7% in the first quarter of 2025 compared to 4.9% in the same period of 2024. The luxury real estate segment continues its strong upward trajectory driven by increased urbanization, expansion of the affluent market class, and strategic investments from both local and international stakeholders.
- The premium residential market in Lagos, particularly in Ikoyi and Victoria Island, has experienced significant price appreciation of approximately 18% over the past year due to limited supply of high-quality developments and growing demand from both local and diaspora investors.
- Afro-contemporary architectural concepts have emerged as a leading trend in 2025, with culturally authentic developments commanding premium prices and attracting significant interest from the international Afropolitan community seeking connection to their heritage.
Real Estate
y-o-y
growth (%)
6.7%
The Project
- According to the Nigerian Bureau of Statistics’ 2025 projections, the real estate sector is expected to maintain annual growth rates of 8-10% through 2030, outperforming many other investment sectors in the Nigerian economy.
- The Afropolitan Alpha Residential Development is envisioned as a premium residential destination that seamlessly integrates elevated living with immersive Afro-contemporary cultural experiences—meticulously curated to inspire and resonate with the global Afropolitan community
- The development is a premium A-grade, contemporary residential building with afro-contemporary aesthetics and amenities designed to provide a cultural and luxurious experience to its target market
No of Floors
26
Location
Bourdillon, Ikoyi
No of Apartments
46
Land Size
54,192.326sqm
Investment Opportunity
- TAARD is seeking to raise $40,000,000 through strategic crowdfunding campaigns structured as convertible debt, allowing investors the opportunity to convert their investments into equity during the construction phase of the project.
- In addition, The Afropolitan Reward Program (TARP) provides investors with an exclusive Afropolitan Debit or Prepaid Cards offering lifelong discounts and immersive Afro-contemporary cultural experiences.
Annualized
Return
Up to
13.4%
Executive Summary
Investment Summary
Investment Type
Investment Objective
Purpose of the Offer
Offer Size
Structure
Developer
Target Annualized Return
Risk
Cultural Premium
The Afropolitan Alpha Residential Development is seeking to raise $40,000,000 crowdfunding as a convertible debt, with the option to convert into equity during the construction phase of the project.
To fund the development of TAARD, a 26-storey premium residential project in Ikoyi, Lagos, that integrates Afro-contemporary culture with sustainable, modern urban living, targeting the global Afropolitan community.
To generate investment returns through the development of a luxury residential project, TAARD. Particularly, the proceeds of the funds raised will be utilized in funding the Project Preconstruction Expenses and the Project Construction Cost up to First Floor.
$40,000,000 through the crowdfunding campaign, part of a broader financing strategy including unit sales and bridge financing.
Crowdfunding as convertible debt, convertible to equity during construction.
The Project is currently being developed and managed by James Cubitt Developments.
13.4% per annum to Investors after payment of all fees, expenses and loan (subject to the assumptions and risks set out in this document).
There are risks associated with an investment in the Project which should be considered by Investors prior to submitting an application. The project risks have been identified as it relates to TAARD. See Pages 40 – 44 for further details of these risks.
First Afro-sophisticated development with ESG and rewards ecosystem.
Nigerian Economy
Despite the economic downturn in Nigeria due to policies such as the removal of petrol subsidies, naira devaluation, and other factors like rising inflation, poverty, and unemployment, the economy is projected to grow at an average of 7% between 2025 and 2027. This growth is supported by increased private consumption and investments, as well as cooling inflation and stabilizing currencies. However, Nigeria's real per capita output is projected to rise modestly in 2025 and 2026, indicating minimal gains in individual income levels despite overall growth.
Gross Domestic Product (GDP)
- Real estate’s contribution to GDP declined from 4.44% in Q1’22 to 1.87% in Q2’23, and rose to 5.88% in Q4’24.
- Construction’s contribution to GDP rose from 4.83% in Q1’22 to a peak of 5.52% in Q2’22, then declined to 4.02% in Q3’22, 3.8% in Q3’23, and 3.27% in Q4’23, and grew to 3.44% in Q4’24.
- GDP grew by 2.31% (year-on-year) in real terms in Q1’23, driven by the non-oil sector, including agriculture, real estate (at 1.7%), and construction (at 3.27%) in Q1’23, with GDP fluctuating from 3.11% in Q1’22 to 3.84% in Q4’24, peaking at 3.54% in Q2’22 and 3.84% in Q4’24.
- Nigeria’s real GDP is expected to rise modestly from 3.84% in 2025 to 7% in 2027, driven by the services sector, though inflation is projected to peak in 2025 before gradually moderating, and poverty is anticipated to increase further in 2025.
*The real estate sector is Nigeria’s fifth biggest contributor to GDP
Nigerian Economy
Inflation Rate
Due to the following,
- Removal of fuel subsidy, leading to a significant increase in transport fares
- Unification of exchange rate and ongoing depreciation of the Naira against the United States Dollar
Nigeria’s annual inflation rate has continued to rise, reaching a multi-decade high. As of [latest available data, e.g., March 2025], the inflation rate was reported at [insert latest figure, e.g., 33.2% based on trends from 2024]. This marks a persistent upward trend from the 28.9% recorded in December 2023, driven by elevated food and energy prices, supply chain disruptions, and currency depreciation.
Exchange Rate
- Currently, the exchange rate is approximately ₦1,600/$1 based on recent trends. In December 2023, the official exchange rate stood at N899.89/$1, while the parallel market rate was N1,228/$1. The gap between official and parallel rates has widened, with recent reports indicating official rates around N1,500/$1 and parallel rates exceeding N1,600/$1. Key reasons for this exchange rate fluctuation include:
- Persistent excess of forex outflow over inflow
- Continued decline in forex supply due to reduced oil revenue and limited foreign investment
- Speculative activities and arbitrage in the foreign exchange market
- However, measures such as improved forex market liquidity, anticipated increases in oil production, and Central Bank of Nigeria (CBN) interventions to curb speculation are expected to stabilize the exchange rate. The CBN’s efforts to clear forex backlogs and attract foreign inflows may further reduce pressure on the Naira in the near term.
Why the Nigerian Real Estate Industry?
The Nigerian real estate industry is one of the fastest growing in sub-Saharan Africa. There are huge opportunities for investment in the industry, which are expected to continue to grow, driven by a growing population and increasing urbanisation Nigeria is undoubtedly one of the most prominent African countries and it underscores the great scale and value of the local real estate industry.
High Demand and Property Value
- Top states in Nigeria where luxury properties have high demand are Lagos, Abuja, Akwa Ibom,, Cross Rivers, and Port Harcourt. Lagos has over 800,000 visitors per annum and is on the path to becoming the seventh-largest urban area in the world.
- The peaceful nature of the environment makes demand to be on the high side over the years with a mixture of our African culture.
High Return on Investment
- With the recent depreciation of the Naira, the Nigerian real estate market serves as an opportunity for investors to mitigate against possible erosion of value as it provides superior returns on investments.
- The high returns on investment in key investment locations are driven by the presence of supporting infrastructure which has contributed to the high capital value increase and ultimately high return
Technology
- Over time, the Nigerian real estate industry has seen rapid development and adoption of high-end technology to meet the diverse demands of market participants.
- Overtime, buyers’ demand for real estate apartments are centered around apartment with high-end smart technology.
- Also, the exciting emergence of Proptech has continued to improve the efficiency, accessibility, and value of real estate transactions in Nigeria while allowing for a secure end-to-end property purchasing experience along the entire real estate value chain.
Luxury Property Market
The demand for Luxury homes in Nigeria is estimated to be between 12-18% in 2025
“Lagos luxury property: ‘No matter how bad the economy, they buy”
- The reopening of the Nigerian economy and boom after the pandemic has played a big role in wealth creation. This newly generated wealth led more buyers to make real estate investments of varying kinds.
- Also, the rich in society are realigning their priorities to spend more on high-end real estate to provide their families with a sense of security, safety, and privacy.
- The upsurge in demand is expected to continue as long as the offerings continue to match the expectations of the home purchasers, and demand will remain sustainable.
Despite the dwindling economic state of Nigeria, Luxury Real Estate has various potentials for growth
Future Prospects on Luxury Real Estate in Nigeria
Sustainable Luxury Living
A key evolution in recent years has been the shift to sustainable environment. Most Luxury homebuyers seek properties with an eco-friendly environment while at it. Sustainable luxury living involves features like solar panels, energy-efficient appliances, smart home systems that monitor energy usage, and even green spaces integrated within the property. Developers are embracing sustainable materials, construction practices, and designs that reduce the carbon footprint, aligning with the values of environmentally conscious luxury consumers
Smart Homes
Homebuyers are on the lookout for properties equipped with advanced technology for reasons such as security, home automation, and health-related purposes which luxury real estate tend to have.
Privacy and Security
Another key factor homebuyers put into consideration is the privacy and security that comes with owning a home. Gated homes, high-tech security systems, and privacy-enhancing features will remain important to luxury real estate buyers.
Luxury Property Market Trend
- Over time, the Naira has depreciated
sharply against the US Dollar causing a
significant loss in value
- Investors are beginning to look for other means to solidify investment to avoid erosion of value.
- Within the Nigerian Property Market, luxury apartments with cutting-edge architectural masterpieces are now being introduced.
- There are projections of accelerated buyers’ interest in real estate assets with Smart Building Technology.
- Buyers of real estate apartments preferences have tilted towards apartments that provide a fusion of home and relaxation
- Hence, would trigger increase in demand for luxury apartments that meet their needs
- With the recent successful implementation of drainage restoration projects in Ikoyi, there has been an increased focus on regulatory enforcement and compliance intensity in the area.
- Regulators are now ensuring that all high-rise developments obtain necessary permits and meet the required building specifications.
Short-let Rentals Market
Market Growth & Driving Factors
Short-let apartments in Lagos experienced a notable rise in 2024, with prices increasing by an average of 46%, driven by inflation, rising construction costs, and heightened demand. Specific neighborhoods such as Ikoyi and Lekki Phase 1 saw increases of 60% and slightly below 60%, respectively, while other areas like Magodo and Ikeja recorded 50% and 42% increases, respectively. Emerging markets like Port Harcourt and Enugu continue to witness 20% annual growth in new listings, signaling expanding demand in secondary cities.
- 54% of the population resides in urban areas, with Lagos and Abuja absorbing 65% of short-let rental demand.
- International visitors increased by 15% to 2.5 million in 2024, driving short-let demand.
- 30% of professionals have adopted hybrid work models, increasing the appeal of flexible short-term accommodations.
- A 3.46% GDP growth rate in Q3 2024 has supported increased purchasing power and rental demand
- Short-let rental values are projected to hit a value of $0.55bn by 2028.
Competitive Landscape & Regional Insights
Lagos continues to lead the shortlet rentals market with a 46.4% price surge in 2024, driven by demand in areas like Ikoyi and Lekki Phase 1. Abuja maintains strong growth, particularly in Gwarinpa, while Port Harcourt’s demand is bolstered by the energy sector. Ibadan and Enugu remain emerging hotspots with 20% annual listing growth, while Kano experiences an 18% increase due to rising tourism. Meanwhile, Abraham Adesanya (Lagos) and Gwarinpa (Abuja) are gaining traction as suburban rental destinations.
The competitive landscape is characterized by Airbnb holding 60% of listings, with local players like Jumia Travel, Spleet, and GuestReady also making significant inroads. Platforms like Escapade are leveraging AI chatbots and smart locks to differentiate themselves. Despite the market’s expansion, culturally immersive shortlets remain underrepresented, presenting a niche opportunity for TAARD.
Short-let Rentals Market
Investment Yields
Investment in short-let rentals in Nigeria continues to present compelling opportunities, particularly in established markets like Lagos and Abuja, where demand remains robust. With high occupancy rates and increasing rental rates, investors can leverage the popularity of culturally themed units to command premium prices, aligning with TAARD’s strategic positioning. The consistent demand for short-term rentals as a preferred alternative to traditional leases helps to mitigate vacancy risks, while well-positioned two-bedroom units can generate substantial monthly revenues, particularly in key areas like Ikoyi, Lekki, and Gwarinpa.
Key Investment Highlights
- Market Demand: Short-let rentals remain a preferred option for visitors and remote workers, driven by flexibility and convenience.
- Strategic Locations: High-traffic areas like Ikoyi, Lekki, and Gwarinpa maintain strong rental demand, ensuring steady occupancy.
- Cultural Appeal: Culturally themed units attract Afropolitans and international visitors, aligning with TAARD’s focus.
- Income Stability: Consistently high occupancy rates provide reliable cash flow for investors.
- Market Positioning: TAARD’s focus on unique, culturally immersive offerings aligns with emerging consumer preference
- Rental Yields: Short-let rentals continue to generate returns up to 200% higher than traditional leases, with Lagos recording average annual yields of 15%
- Risk Mitigation: Short-lets maintain a 78% occupancy rate, compared to 60% for long-term rentals, reducing vacancy risks.
Technology and Innovations Trends
- Smart Technology: 30% of short-lets in Lagos use smart locks and IoT devices for seamless check-ins.
- AI Integration: Platforms like Escapade app leverage AI for pricing optimization and guest support.
- Virtual Tours: 50% of listings now offer 3D virtual tours, boosting bookings by 20%.
- Payment Systems: Adoption of fintech solutions like Flutterwave for seamless diaspora payments.
- TAARD Opportunity: Integrate smart tech to enhance guest experience, aligning with Afropolitan expectations
Project Overview
The Afropolitan Alpha Residential Development (TAARD) is a proposed 26 floor luxury mixed-use building located at Ikoyi, Lagos State. The development is a premium A-grade, contemporary residential building with afro-contemporary aesthetics and amenities, designed to provide cultural and luxurious experiences to Nigerians in Diaspora, Ultra HNIs and HNIs.
Proposed Project Location
Proposed Project Location
Building Type
Luxury Mixed-use Apartment
Target Market
High Net worth Individuals
Afropolitan Diaspora & Global Professional
Returning & Repatriating Diaspora
Corporate & Executive Housing Client
“
Part of the ambition for this project is to elevate Lagos, putting it on the list as a top property investment destination by disrupting the traditional development product market with a unique offering.
”
The Afropolitan: Fusion of Luxury with Rich Cultural Heritage
The Afropolitan Alpha Residential Development is a visionary development that seamlessly blends premium residences and hospitality suites, a cultural haven, and a wellness retreat; an exquisite fusion of contemporary African elegance and world-class comfort with spaces for art, dining, and innovation. The Afropolitan is a trophy home for rewarding successful Afropolitans. This is not just luxury but ultra luxury.
Key Specifications
- Total Area: 54,192.326 square meters
- Structure: 26 floors plus a basement
- Residential Units: 46 luxury Apartments
- Design Philosophy: Afro-fusion architecture that integrates cultural motifs with modern aesthetics.
Cultural & Lifestyle Features
- Art Gallery
- Kitchen Afrique (African-themed culinary space)
- Afro-tribal Photo Studio
- Afro-Couture Boutique
- Art Theatre
- African Language Center
Redefining Luxury Living
- The 26-storey TAARD development will allocate 18 floors for premium residences and the remaining level for lifestyle amenities, including wellness, dining, and cultural spaces with Afro-contemporary design.
- TAARD is the first of several Afropolitan projects that aim to integrate culture, sustainability, and luxury living, setting a new standard for future developments in Nigeria and beyond.
TAARD: Apartment Configuration & Target Audience
Who Is An Afropolitan?
An African world citizen who has traveled extensively studying, exploring, and working, and has come to appreciate ‘home’.
Whether living on the continent or in the Diaspora, the Afropolitan is the star of this narrative.
Target Audience Description
- Professionals and Successful Afropolitans in the diaspora (inclusive of other African countries and the world in general)
- Lessee’s of premium managed properties in Maitama, Asokoro, Old and New GRA, Ikoyi and Victoria Island
- Chief Executive Officers of Top 500 companies in Nigeria (Board, CEO, and other decision makers, CFO, CHRO) of:
- Private banks
- Airlines
- Oil & Gas companies
- Multinational consultancy companies
- Fintech and Telecommunications companies
- Pharmaceutical companies and much more
Total Apartments
Land Size
No Of Floors
Commercial Space Size
| Apartment Configuration | Topology | Units | $ |
|---|---|---|---|
|
1 Bedroom |
116 sqm |
12 |
150 |
|
2 Bedroom |
239 sqm |
11 |
290 |
|
3 Bedroom |
304 sqm |
6 |
357 |
|
4 bedroom standard maisonette |
552 sqm |
3 |
582 |
|
4 bedroom premium maisonette |
644 sqm |
4 |
665 |
|
5 bedroom maisonette
|
692 sqm |
5 |
710 |
TAARD: An upscale residential complex that infuses city living with cultural vibrancy
Comparative Market Analysis (CMA) in Ikoyi
Ikoyi is notably a high-class neighborhood with a number of luxurious estates, first-rate residential facilities and high-end office developments. The following details the Comparative Market Analysis (CMA) in Ikoyi.
Rose of Sharon
BellaVista
Belmonte
Ocean Parade
| Project Names | Afropolitan | 4 Bourdillon | Rose of Sharon | Belmonte | Bella Vista | Ocean Parade |
|---|---|---|---|---|---|---|
|
Apartment Types |
1,2,3 bed flats
4-5 bed masionettes
|
3,4-bed flats 3,4-bed duplexes |
1,2,3 bed flats |
4 bed flats |
3,4 bed flats |
4-bed standard (small)
4-bed family (large) |
|
Sales/Lease prices |
1-bed: $150/(DLR)
2-bed: $290/(DLR)
3-bed: $357 (DLR)
4-bed premium:
$582(DLR)
4-bed standard:
$665(DLR)
5-bed:$710(DLR)
|
3-bed: $1.8 million
4-bed (duplex):
$4.3 million
4-bed apartment: $3.2 million |
Lease: $45,000 (3-bed)
Lease: $200 per day (Short let) |
$1.8 million |
3-bed: $1.3 million
4-bed: $3 million |
Lease: N23 million (4-bed standard) Lease: N25 million (4-bed family) |
|
Apartment Sizes |
1-bed: 132.7
sqm
2-bed: 259.5
sqm
3-bed: 435.2
sqm
4-bed premium:
844.2 sqm
4-bed standard:
844.2 sqm
5-bed: 868.5
sqm |
3 bed: 510 sqm
4bed: 584 sqm 4-
bed duplex: 969 sqm
4-bed penthouse: 1,137 sqm |
N/A
|
N/A
|
3-bed: 1200 sqm (Bq included) |
4-bed: 326 sqm |
Comparative Market Analysis (CMA) of Short-lets in Ikoyi - Pricing
The Comparative analysis of short-let rental properties in Lagos highlights a diverse range of offerings, from Afro-contemporary boutique apartments and cultural Airbnb-style lodgings to high-end hotels and serviced apartments, with varying ADRs, cultural themes, and certification statuses.
Deluxe Residences
Orchid House
Wheatbaker
Nordic Hotel
| Property | Location | Type | Avg. Daily Rate ($) | Afro-Contemporary Elements | ESG Aligned |
|---|---|---|---|---|---|
|
Afropolitan-Alpha (Projected) |
Ikoyi |
Boutique Serviced Apts |
$265 |
✓
Full Immersion |
✓
Certified |
|
M Residence |
Ikoyi |
Serviced Apartments |
$300 |
✗ |
✗ |
|
Wheatbaker Hotel |
Ikoyi |
Boutique Hotel |
$350 |
✗ |
✗ |
|
Deluxe Residences |
VI |
Short-Stay Apartments |
$270
|
✗ |
✗ |
|
Nordic Hotel |
VI/Lekki |
Scandi Boutique Hotel
|
$320 |
✗ |
✗ |
|
Orchid House |
Lekki Phase 1 |
Afro-Contemporary Boutique |
$185 |
✓
Limited |
✗ |
|
Àjọjọ Apartments |
Lekki |
Cultural Airbnb-style |
$145 |
✓
Cultural focus |
✗ |
|
Presken Hotels & Resorts |
Ikoyi |
Serviced Apartments |
$210 |
✗ |
✗ |
|
Southern Sun |
Ikoyi |
4-star Hotel |
$280 |
✗ |
✗ |
|
Radisson Blu Anchorage |
VI |
Business Hotel |
$330 |
✗ |
✗ |
|
George Residence |
Ikoyi |
Serviced Apartments |
$290 |
✗ |
✗ |
|
Marriott Lagos |
Ikeja |
5-star Hotel |
$310 |
✗ |
✗ |
|
Lagos Continental Hotel |
VI |
Waterfront Hotel |
$370 |
✗ |
✗ |
|
The Yacht Hotel |
Lekki |
Boutique Waterfront |
$340 |
✗ |
✗ |
|
Black Ivy Lagos |
Ikoyi |
Afro-Contemporary Boutique |
$195 |
✓
Limited |
✗ |
Comparative Market Analysis (CMA) of Short-lets in Ikoyi – Landscape Overview
High End Hotels
- 4–5-star hotels in Ikoyi/VI, mostly for short corporate stays.
- The Wheatbaker (Ikoyi), Radisson Blu Anchorage (VI), Southern Sun (Ikoyi), Marriott Lagos (Ikeja), Eko Signature (VI)
- Ownership opportunities, Afro-inspired design, extended-stay versatility
Serviced Apartments
- Furnished apartments for expats & executives
- M Residence (Ikoyi), Deluxe Residences (Ikoyi), Presken Hotels & Resorts (Ikoyi), George Residence (Ikoyi)
- Cultural immersion, ESG integration, concierge services, legacy brand
Boutique Experimental Lodge
- Thematic lodges for short stylish stays
- Maison Fahrenheit (VI), Villa Monument Hotel (Ikoyi), Bogobiri House (Ikoyi)
- Cultural storytelling, investor participation paths, ESG rigor
Waterfront/Design-Forward Hotels
- Scenic properties with a minimalist, design-led focus
- Nordic Hotel (VI/Lekki), The Yacht Hotel (Lekki), Lagos Continental Hotel (VI)
- Afro-Contemporary identity, design sophistication, longer stay options
Afro-Contemporary Lodging (Niche)
- Afro-themed B&Bs or private homes
- Àjọjọ Apartments (Lekki), Orchid House (Ikoyi), Black Ivy Lagos
- Premium finishes, ESG validation, scaled ownership
Comparative Market Analysis (CMA) of Short-lets in Ikoyi - Pricing
Luxury Developments In Bourdillon
- Bourdillon is a popular luxury hub that enjoys sustained property development. This makes the area largely attractive for residents and one of the best real estate locations in Lagos.
- Bourdillon is one of the most sought-after areas for real estate in Lagos. There are various structures such as flats, terraced buildings and semi- detached houses, bungalows, shops, and office spaces for rent and for sale here.
- Located in the most sought-after district of Ikoyi, Connecting the Commercial Awolowo road with Alexander road as well as the Ikoyi Link bridge.
- Bourdillon caters to her steady stream of residents with a large number of commercial properties. There are schools, hospitals, and companies in this neighbourhood.
- Bourdillon is the principal intercross connecting the residential area to the business area of Ikoyi, in a neighborhood that is at the same time secure and lively boasting of the most luxurious properties in Ikoyi.
The Vantage
4 Bourdillon
The Belmonte
Lagos: West Africa’s truly Cosmopolitan City
All the major cities in the world have iconic buildings that define the city, which become a landmark and tourist attraction.
Lagos with its fair share in iconic architectural masterpieces is setting the pace to become West Africa’s truly cosmopolitan city.
Petronas Towers,
Kuala Lumpur, Malaysia
Burj Khalifa
Dubai, United Arab Emirates
Empire State Building,
New York, USA
London Egg Building,
London, United Kingdom
Green Technology Features
In line with the ongoing trend of buyers of real estate seeking apartments that include smart building technology, Project Afropolitan is structured to include green features. Below are some of the green and special technology features to be contained in various aspects of the Project Afropolitan construction.
and Air Conditioning
Installations
The Heating, Ventilation and Air Conditioning (HVAC) System design of the building is structured to ensure adequate ventilation of the building while utilizing efficient energy sources.
- HVAC Equipment will come with energy-saving options, fans will be variable speed, and pumps will be intelligent energy efficient types.
- VRV System will be utilized for the Residential Floors to facilitate the independence of operation of equipment, effectively solving part-occupancy issues by using energy-saving AC Equipment.
- The entire installation of the HVAC system will be IP Based and fully connected to BEMS. All major parameters, including CO2 level, will be monitored for use in the control of IAQ.
High-grade quality electrical appliances and renewable solar energy will be incorporated into Project Afropolitan.
- Electrical Temperature Sensors and timers to be installed in areas with cable congestion to monitor temperature and provide intervention for temperature reduction by cooling.
- Smart metering of all panels at point of connection to Low Voltage Panels, facilitating protection and recording of all electrical loads according to the various needs.
- Renewables – PhotoVoltaic panels will be used for electricity supply as possible additional backup power in key areas of the Afropolitan Building.
Green Technology Features
In line with the ongoing trend of buyers of real estate seeking apartments that include smart building technology, Project Afropolitan is structured to include green features. Below are some of the green and special technology features to be contained in various aspects of the Project Afropolitan construction.
Plumbing
Fire System
In terms of the plumbing works in Project Afropolitan, enhanced water economy is the principal goal. This would be achieved through the incorporation of the following into the building features.
- Utilize pipe materials that will reduce the noise level in the piping system, whilst facilitating easy flow and maintenance challenges.
- Water consumption to be monitored and leakage detectors to be installed in relevant areas of the plumbing system.
- Battery-operated sensors will be provided for plumbing fittings and faucets to enhance water economy.
- Incorporation of efficient sewage treatment plant with flow censors and monitoring of liquid levels and treated effluent quality
The project developer has taken into consideration specific efficient and green features in the design of the building’s fire system.
- Building is fully Sprinkled with Fire Hose Reel and Portable extinguishers will be provided in key parts of the building.
- Electrical panel rooms shall be provided with a Fire Suppression System. The suppression fluid is a Fluoroketone with a much lower Global Warming Potential than HydroFluoroCarbons (HFC).
- Water savings from Rainwater and grey water will be considered for use as Fire Water, using a continuous flow Wier system. This will eliminate the use of treated water for Fire.
The Afropolitan Alpha Residential Development: Sales Inputs
The project plans to sell 12 of its 46 apartments between Year 1 and Year 4, generating $14.3 million, while operating the remaining 29 as short-term rentals at nightly rates of $150–$710, alongside leasing 4,272 sqm of retail space at $630/sqm annually with an 80% occupancy rate.
Payment Plan
Total Residential Sales/ Short-Term Lettings
Sales Plan
Total Retail Space
- The residential sales plan envisages a scenario where twelve (12) apartments will be sold between Year 1 and Year 4 of the construction period, as follows:
- 3 units of 4-bedroom (standard) maisonettes
- 4 units of 4-bedroom (premium) maisonettes
- 5 units of 5-bedroom maisonettes
The remaining 29 apartments will be operated as short-term lettings at the following nighty rates:
- 1-bedroom units: $150/night
- 2-bedroom units: $290/night
- 3-bedroom units: $357/night
- 4-bedroom maisonette (standard): $582/night
- 4-bedroom maisonette (premium): $665/night
- 5-bedroom maisonette: $710/night,
The 4,272 sqm of retail space will be leased at $630/sqm per annum with an occupancy rate of 80%
The Afropolitan Alpha Residential Development: Sales Inputs
The Afropolitan is scheduled for a 5-year period; 4 years of construction and 1-year post-construction to sell the remaining apartments available after construction.
Residential Apartment Lease Plan
| Apartment Topology | Construction Period | Post- Construction | |||
|---|---|---|---|---|---|
|
|
Year 1 |
Year 2 |
Year 3 |
Year 4 |
>Year 5 |
|
1 bedroom |
0 |
0 |
0 |
0 |
12 |
|
2 bedroom |
0 |
0 |
0 |
0 |
11 |
|
3 bedroom |
0 |
0 |
0 |
0 |
6 |
|
4 bedroom (standard) |
3 |
3 |
3 |
3 |
0 |
|
4 bedroom (premium) |
4 |
4 |
4 |
4 |
0 |
|
5 bedroom premium |
5 |
5 |
5 |
5 |
0 |
|
Total |
12 |
12 |
12 |
12 |
29 |
Residential Apartment Lease Plan
| Apartment Configuration | Units | Daily Lease Rate ($) |
|---|---|---|
|
1 bedroom |
12 |
150 |
|
2 bedroom |
12 |
290 |
|
3 bedroom |
8 |
357 |
|
4 bedroom standard maisonette |
4 |
582 |
|
4 bedroom premium maisonette |
4 |
665 |
|
5 bedroom premium maisonette |
6 |
710 |
|
Total |
46 |
|
| Retail Space Sales Plan | |
|---|---|
|
Retail space to be sold |
4272sqm |
|
Lease price per SQM |
$630/annum |
|
Lease period |
5 years |
Project Risk Factors and Mitigating Strategies
Market Fluctuations
Nigeria’s economic volatility, inflation, and currency devaluation impact real estate demand, property values, project costs, and investor returns. Market risk, driven by buyer availability, threatens Project Afropolitan’s revenue, profitability, and cash flows.
Mitigating Strategies
Conduct market trend analysis, use derivatives for hedging currency and inflation risks, adopt flexible pricing, implement phased development, and diversify apartment offerings to mitigate market volatility and attract broader buyers/renters.
Mitigating Strategies
The project would optimize the currency of payment, such that Diasporas and expatriates are encouraged to pay in dollars. The dollar revenue would be used to match the project cost that would be incurred in dollars while optimizing the trade-off from the potential devaluation of the Naira.
Exchange Rate Risk
Given the design of the project, some building materials would almost certainly be sourced externally. Exchange rate volatility will cause cost overruns and significant adjustments in the project’s cash flows, as well as affect its profitability.
Project Risk Factors and Mitigating Strategies
Inflation Risk
Inflation risk is the risk that the price of building materials will rise due to Nigeria's persistently high inflation rate. The cost of finishing the project will rise as the inflation rate rises (cost overrun). The project's viability would suffer as a result of the inflation risk.
Mitigating Strategies
Unit Price contract and supply contracts at the pre-determined price will be negotiated and agreed upon with contractors. Also, independent certification of the project cost to ensure that the project cost is not understated.
Counterparty risk
This involves the probability that one of those involved in the transaction might default on its contractual obligation. For example, off-takers default, and construction delays by counterparties (contractors). The default of one of the parties involved in the project might result in project delay and cost overruns.
Mitigating Strategies
Offtakers’ Bank Guarantee – Offtakers’ default will be mitigated through bank guarantees from off-takers. Performance Bond – contractors will also be required to provide a completion risk guarantee against the completion of the project.
Project Risk Factors and Mitigating Strategies
Regulatory & Compliance Risks
Changes in Nigerian SEC regulations for crowdfunding or real estate development. Non-compliance with Environmental and Social Impact Assessment (ESIA) requirements. Bureaucratic delays or corruption in regulatory processes.
Mitigating Strategies
Secure regulatory approvals before construction, collaborate with Nigerian legal advisors for compliance, update protocols for SEC regulations, conduct ESIA audits, and build relationships with regulatory bodies to streamline approvals.
Mitigating Strategies
Hire reputable Nigerian contractors, conduct geotechnical site assessments, secure permits early via local partnerships, and create a flexible project timeline with buffers for delays, particularly during the rainy season.
Construction and Delay Risk
Construction risk involves assessing technical capacity, engineering staff, and support for Project Afropolitan. Risks include permit delays, material or labor shortages, unforeseen site conditions, and adverse weather like heavy rainfall.
Project Risk Factors and Mitigating Strategies
Financial Risks
Risks include limited crowdfunding success due to low investor confidence, construction cost overruns from inflation or currency depreciation, and delays in securing timely bridge loans from Nigerian or international banks.
Mitigating Strategies
Implement accurate budgeting, maintain contingency reserves, secure varied funding streams (banks, private equity, crowdfunding), enforce rigorous cost management, and conduct ongoing financial oversight to address issues and control costs.
Operational Risks
Persistent power outages and inconsistent utility services, such as electricity and water. Delays or substandard performance by vendors and contractors. Increased cybersecurity risks to The Afropolitan Reward Program (TARP) due to growing digital fraud in Nigeria.
Mitigating Strategies
Establish strong vendor contracts with performance guarantees and delay penalties, install utility backup systems like generators and water tanks, and enhance TARP’s cybersecurity with encryption, monitoring, and fraud detection.
Project Risk Factors and Mitigating Strategies
Reputational Risks
Negative publicity or community resistance due to insufficient local benefits. Investor discontent from delays, unfulfilled expectations, or poor communication.
Mitigating Strategies
Transparent Communication: Engage openly with investors, stakeholders, and the community to build trust. Proactive Issue Resolution: Address concerns swiftly to maintain goodwill. Promote Social Impact: Emphasize job creation and sustainable design to enhance public perception.
Mitigating Strategies
Private Security: Employ private security firms to safeguard the construction site from theft, vandalism, or sabotage. Site Protection: Install surveillance systems and secure fencing around the site. Local Law Enforcement Collaboration: Partner with local police to address regional security issues.
Security Risks
Theft, vandalism, or sabotage targeting the construction site. Regional insecurity, including risks of civil unrest or crime.
Exit Strategies
Debt to Equity Conversion
- Starting during construction, investors will have the option to convert their debt holdings into equity in the project.
- Convert debt to equity with transparent valuation, offering potential for capital gains.
- Investors can transition from fixed-income returns (debt) to potential capital appreciation (equity).
Buyback Arrangements
- The developer will offer a buyback option for investors starting during construction.
- Buybacks will be staggered to ensure financial sustainability and avoid strain on the project’s cash flow.
Secondary Market Trading
- Investors will have the option to sell their stakes (debt or equity) on real estate investment platforms or secondary markets.
Buyback Arrangements
- Investors holding equity stakes will benefit from the sale of residential and commercial units.
- Proceeds from sales will be distributed to equity holders based on their ownership percentage.
Offer Details
| Details | |
|---|---|
|
Issuer |
Afropolitan SPV Limited
|
|
Project Sponsor
|
Mabadeje Estates Limited
|
|
Financial Advisers |
MBC Capital Limited
|
|
Offer Size |
$40,000,000
|
|
Purpose |
TAARD seeks to utilize the funds to finance the Project’s Preconstruction Expenses and
the Project Construction up to First Floor.
|
|
Method of Issue
|
Crowdfunding via a Convertible Debt
|
|
Currency |
Dollars ($)
|
Use of Proceeds
The Afropolitan Alpha Residential Development is seeking a $40,000,000 crowdfunding programme via a convertible debt towards financing the preconstruction expenses and the construction cost up to the first floor. Below are the key highlights of this investment opportunity.
| S/N | Details | ₦’000 |
|---|---|---|
|
1 |
Technical and other Consultant Fees
|
3,153,603 |
|
2 |
Approvals – LASG
|
375,000 |
|
3 |
Marketing costs
|
1,000,000 |
|
4 |
Demolition Costs
|
251,000 |
|
5 |
Building Development
|
54,352,941 |
|
6 |
Statutory Insurance
|
271,765
|
|
7 |
Legal Fees
|
50,000
|
|
8 |
Miscellanous expenses
|
1,486,358
|
|
9 |
Bridge Finance repayment (principal & interest)
|
3,970,168
|
|
10 |
Tax (VAT)
|
475,254 |
|
11 |
Pre-Construction Cost |
3,146,000 |
|
|
TOTAL |
68,532,089 |
Key Investment Benefits
- The project’s financial projections indicate a positive Net Present Value (NPV) and a resultant high return on Investment.
- This investment opportunity boasts of an attractive investment return. The project proposes annualized return of 13.4% to Equity Investors and a perpetual lease income.
- With the recent exchange rate crisis in Nigeria and the increasing inflation rate, investors are now seeking means to solidify investments.
- Real estate has been identified as one of the means to preserve investments against erosion.
- Hence, the recent market demand for real estate opportunities.
- TAARD is located in the heart of Bourdilon, one of the most sought-after areas for luxury real estate in Lagos.
- This presents a unique selling point for the project to leverage on.
- Bourdillon is notably a high-class neighborhood with first-rate residential facilities and high-end office developments.
- Amongst other comparable projects, The Afropolitan is a mixed-use apartment home to a list of attractions from impressive art galleries to museums, and classy restaurants.
- It provides an opportunity for leasable commercial space and outright sales for prospective off- takers.
About James Cubitt
James Cubitt began its operations in Nigeria in 1956 as part of an international multi-disciplinary community of independent thinkers: Architects, Engineers, planners, and project managers that provides engineering, management, and specialist technical services for public and private sector clients globally. With over 60 years of operations in Nigeria, the James Cubitt brand has shown intelligent experience and expertise with several remarkable projects – With an office network extending across 12 countries, James Cubitt has been involved in projects across Africa, Asia Pacific, the Middle East, Australia, and Europe. We have a sterling reputation for excellence and professionalism in the Nigerian real estate development industry.
Expanding Reach
With offices in Africa, the Middle East, and Europe, the James Cubitt group is expanding to meet the various needs of ever-growing clients needs
Competent Team
The James Cubitt team is composed of passionate and competent professionals that constantly deliver long-term value to clients
Reputation
The reputation of the James Cubitt brand is outstanding as the company has been privileged to successfully serve blue-chip companies around the world.
Introduction
James Cubitt Developments (JCD) is a real estate development vehicle utilised by James Cubitt Companies & their Strategic Partners to deliver a full range of property development services to the premium plus real estate market in Nigeria.
JCD also enables James Cubitt and its Strategic Partners to leverage 60 plus years of expertise and experience, locally and internationally, to provide exceptional solutions to large-scale and often complex real estate transactions, while ensuring that consistent and long-term value is derived for all stakeholders. From idea generation to conceptualization through to occupancy and maintenance, our valued services have over the years proven to guarantee a lasting positive impact on turnkey development projects.
About James Cubitt Development
Design
James Cubitt design companies, via JCD will offer the following:
- Architecture
- Interior Design
- Structural Engineering
- Mechanical, Electrical, and Plumbing
- Engineering
- Geotechnical Engineering
- Land Surveying
- Quantity Surveying
Marketing
- Market analysis & research
- Traditional marketing
- Digital marketing
- Search engine marketing
- Social media marketing
- Outbound marketing media
Financial Advisory
James Cubitt design companies, via JCD will offer the following:
- Architecture
- Interior Design
- Structural Engineering
- Mechanical, Electrical, and Plumbing
- Engineering
- Geotechnical Engineering
- Land Surveying
- Quantity Surveying
Managament
- Property Management
- Facility Management
- Construction Management
- Design Management
Sale
- Sales and Leases
- Sales advisory
Project Support Advisory
- Planning and Approvals
- Legal
- Accounting and Tax
- Procurement's
James Cubitt Real Estate Projects & Concepts
- The French Consulate
- Sky Gardens, Banana Island, Ikoyi The
- Wesley,Victoria Island, Lagos
- Guinness Head Of ce
- NNPC Pension Fund Development, V.I.,Lagos African
- Capital Alliance Head Of ce
- CharteredInstitute of Bankers of Nigeria (CIBN)
- Diamond Bank Drive-Through Branch, Lekki,Lagos Civic
- Centre:Ozumba Mbadiwe, V.I.,Lagos
- Aso Savings and Loans Head Of ce Abuja Ford
- Foundation-Banana Island, Ikoyi, Lagos
- Durosinmi Etti, Kofo Abayomi, V.I., Lagos
- UN House:Abuja
- British Deputy High Commission CAPL, IKoyi
- Chanrai Towers, Marina
- Coca-ColaHead Of ce ResidentialDevelopment
- Mosafejo Residence, Ikoyi
- Novotel, Port Harcourt
- SenateBuilding, University of Lagos
- Maersk House, Tema, Ghana
- Mobil House, Ozumba Mbadiwe, V.I.,Lagos
- CitiBank Head Office, Ozumba Mbadiwe,VI,Lagos
- Stanbic IBTC, Victoria Island, Lagos
- American International School, Lekki,Lagos
- Sogenal Towerts, Ikoyi, Lagos
- Shell Flats,Ogunu, Warri Transcorp, Abuja
- Durosinmi Etti, Kofo Abayomi, V.I., Lagos
- UNCP Lagos Orascom, Lagos
- PZ, Lagos
- Helios Apartments, Onikoyi, Ikoyi
- The Haven, Cooper Road, Ikoyi
James Cubitt Real Estate Projects & Concepts
Executives
Expression of Interest Form
Application
- If you are interested in investing equity into The Afropolitan project, kindly fill the Expression of Interest form below
- Upon filling the form, please send an email to investmentbanking@mbcgroup.com.ng, with the filled form attached to it.