Lontoh seals Ivorian deal

Posted On Monday, 08 September 2003 02:00 Published by eProp Commercial Property News
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JOHANNESBURG-based project finance firm Lontoh South Africa has signed a memorandum of agreement with Yamoussoukro, the capital city of Côte d'Ivoire, for a 500m project.










Although the decision to make Yamoussoukro the capital of Côte d'Ivoire was made in 1985, the decision to implement it was taken only in 2000.

This has created the need for extensive housing in the city as the population was expected to double in the next three to four years.

Until now Abidjan was the commercial and administrative centre of Côte d'Ivoire.

Lontoh Capital Partners, a division of Lontoh South Africa, would structure and arrange a $150m funding package for the first phase.

The project was announced at a press briefing attended by Yamoussoukro mayor Jean Kouacou.

Paul O'Sullivan, chief operations officer in charge of Lontoh Capital Partners' Yamoussoukro operations, said the project would include 10 000 housing units.

O'Sullivan said a truck stop would also scheduled for construction to make Yamoussoukro a long-haul transport hub of West Africa.

"We are still busy with the feasibility study on the truck stop, but we expect it to accommodate 500 to 600 trucks," he said.

Also included in the first phase would be a 5000m² retail centre, which would grow to 20000m² by the end of the project.

Four one-hectare urban parks would also be established. Although Lontoh only expects to "dig the ground" for houses in February or March 2004, O'Sullivan said all the infrastructure like stormwater drainage, sewerage systems, roads and electricity was already in place.

The building projects will be tendered to South African companies on a development basis but profit would be pegged at 35%.

Ivorian labour would be used in the project and a transfer of skills to Ivorians was an important part of the project.

"We are very impressed with the examples of the various residential schemes and developments we have seen during our visit here in Johannesburg," said Kouacou.

"We are very keen to emulate such developments in Yamoussoukro in order to establish ourselves as a world class city in west Africa''.

Last modified on Thursday, 17 April 2014 08:53

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