Lagos property developer gets $500 million PE financing from Milost Global
This being the first transaction for Milost Global in Nigeria, we look forward to ensuring that it becomes a foundation from which our Nigerian growth testament will be written. – Egerton Forster, CEO of Milost Global.
Femab Properties Limited, a Lagos-based property development and investment company, today announced it has signed a financing term sheet of $500 million with Milost Global Inc., a New York-based private equity firm.
The financing is a working capital and development facility for Femab, provided as a combination of debt and equity. $200 million will be an equity finance, while $300 million will be debt. Both the company and the investor were expected to sign a commitment letter by August 30.
The financing was provided to enable Femab to focus on the development of its current project, which Milost found very attractive.
‘’This is the genesis of our investment in Nigeria, Africa’s number one fastest growing economy. This being the first transaction for Milost Global in Nigeria, we look forward to ensuring that it becomes a foundation from which our Nigerian growth testament will be written and more importantly, we intend to ensure that Femab is well supported in its plans to becoming the biggest real estate development and investment company in West Africa by 2025,” stated Egerton Forster, CEO of Milost Global.
The Chief Executive Officer of Femab Properties Limited, Abiodun Aguda, stated that the Milost Global facility will provide the springboard from which the company will launch its lofty vision of expanding its real estate footprint in the provision of environmentally sustainable, affordable mass housing for the teeming population of Nigerians whilst realizing its focal strategy of being a true pan African real estate development firm.
Femab Properties has entered into multiple Build, Operate and Transfer (BOT) concession agreements with some select public and private Nigerian universities for periods ranging from 25 to 30 years. The projects aim to address the huge infrastructure gap, including hostel accommodation for students in tertiary institutions across Nigeria. Femab also has mass housing project agreements signed with different governmental and private institutions within and outside Nigeria, according to the statement released by the company.
Some of the projects Femab has delivered include Dream Home Estate at Ikorodu, Peninsula Garden Estate at Ogombo - Lekki, Diamond Estate 1 at Sangotedo - Lekki, all in Lagos. The company is currently coordinating more upscale projects namely; Diamond Estate 2 at Sangotedo – Lekki, Platinum Gate Estate at Alaka – Surulere, Association of Nigerian Physicians in America (ANPA) in addition to federal and state government mass housing projects in Nigeria.
Femab operates subsidiaries in blockmaking, quarry, haulage and logistics.
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