AlphaMead plans to lower entry level for middle income home buyers

Alpha Mead Development Company (AMDC) has announced its plans to lower the entry level for middle income home buyers in Nigeria, using a modular building system.

AMDC is one of the Strategic Business Units of Facilities Management Company, Alpha Mead Facilities & Management Services Ltd (AMFacilities).

The company’s plan was revealed at a press briefing in Lagos recently, where it officially announced its partnership with Wall-Ties & Forms International (WTF), a recognised world leader in the formwork industry.

Speaking at the briefing, Managing Director of the company, Engr. Femi Akintunde stated that the company entered into the partnership with WTF as one of its strategies in exploring innovative technology to build quality houses, and lower the entry level for middle-income home buyers from the current market average of N6 million to as low as N250, 000 monthly, without any initial large deposit or collateral.

He said the project, Lekki Pearl is a 112 unit estate of four house types that were developed in response to the increasing estimated 17 million housing gap in Nigeria.

He stated that Modular Building System, also called Formwork Panels used on the project, are aluminum panels that ensure strict quality control, consistent building quality and curb wastage of building materials when compared to conventional building methods.

He said these formworks ease the process of construction, drive down the cost of building by a very wide margin, and increase the speed of construction to as much as delivering a house every week, post foundation.

Akintunde stated that the company has already recorded 60% off-plan subscription on its flagship project which is the 112 units Lekki Pearl Estate, where the formworks are being used for construction.

He said, “Our aim is to lower the entry level for home ownership to just guaranteed regular income, from where the monthly N250,000 instalments can be paid.”

He stated their intention to help middle income Nigerians, who are unable to raise the large capitals most developers demand as deposit, or are unable to build due to the large capital involved and other perennial challenges, as well as wastages associated with self-built houses.

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He also stated that if the home ownership entry level for the average Nigerian is pegged at the current N6 million average, many Nigerians, especially middle-income earners will find it difficult to own a home; or at best, reach their retirement age before their legitimate income can attain this deposit requirement level.

He concluded that the conventional building methods will be inadequate to bridge the identified housing gap in Nigeria, and the company welcomes strategic partnerships from government and private institutions with titled land to share this innovative solution in their quest to save cost and deliver quality housing that meets international standards.

A Board member of Alpha Mead Development Company, Engr. Dada Thomas stated that the objective of the company is to drive down the cost of affordable housing in Nigeria, and partnering with Wall-Ties & Forms international is the right way to delivering affordable homes.

Also at the briefing, Damola Akindolire, General Manager, Real Estate Development of the company noted that about 20- 30% of construction cost goes into waste such as broken tiles, damaged blocks, plywood, bamboo, personnel cost; due to the extended period of conventional building systems, and poor finishing.

He stated that the focus of the organisation is to lower the market entry barriers for home buyers through the use of technology that can help eliminate wastes that would have been built into the construction cost.