•Firm to lose over $200 million beachfront realty investments
A major tripartite talk has begun between Landmark Group, Federal Ministry of Works and Lagos authorities on the rerouting of about 1.5km out of the 700km stretch of the road to its original location on the Water Corporation Road median in Oniru, Victoria Island, Lagos.
The company had fallen victim to the proposed Lagos-Calabar coastal road project after an alleged readjustment of the route that affected the multi-billion-naira investments along the Atlantic Ocean beachfront.
Landmark acquired beachfront realty along the Water Corporation Road in 2007 and at the time, the original construction plan for the road as part of the West Africa coastal highway was to go through the Water Corporation Road median, which to date remains undeveloped.
The Guardian learnt the investors to the Landmark group led by Mr Paul Onwuanibe were jolted on March 19, 2024, when officials of the Lagos State government notified them that some part of the 13-hectare mixed-use property falls within the right-of-way alignment for the project by 50 meters.
According to the letter signed by the Deputy Director, Development Matters Department, Somolu O, areas to be affected include the Beach Resort, Kids and Bay Area, and Lagos Beach Club, among others.
The company stated that it has invested over $100 million (a large part of which comprises debt from both local and foreign sources) to develop the ecosystem, as well as boasts an enterprise valuation of $200 million. Landmark alone supports the contribution of over N1.6 billion in yearly tax revenue to various strata of government, while the ecosystem produces over N2 billion in yearly tax revenue, with over 4,000 direct and 12,000 indirect jobs.
Landmark is a business, leisure, and lifestyle destination, spanning multiple industries, including commercial property, healthcare, education, entertainment, leisure and retail. The company is home to Landmark Towers, Landmark Beach Resort, and Landmark Retail Boulevard on 123,654 square meters. The Landmark Hotel, with an 18-room hotel located in the towers, offers a combination of city views and ocean view rooms. Also, there is Landmark Waterview Apartments under construction, which on completion will comprise a 28-storey building and 308 premium residential apartments.
The company’s senior officials, said, if the government goes ahead with its proposed route, as presently planned, it portends the destruction of the Landmark Group with the over 80 businesses operating within its ecosystem, thus leading to the demise of a major player in the hospitality and tourism industry, mass unemployment and lost taxpayer revenue, among other socio-economic fallouts.
Onwuanibe, who confirmed to The Guardian that discussions have started between the parties, said: “We are discussing with the federal and state agencies on the need to reroute the coastal road as originally conceived. There is no need to pull down a $200 million investment when there is an alternative route.”
“Wide-ranging consultations with concerned stakeholders are ongoing to formulate alternative win-win solutions for undertaking the development of the road while preserving the existing businesses and their strong socioeconomic value.
“The construction of the Lagos-Calabar Coastal Road stands out as a commendable project as it will connect vital regions of the country and contribute immensely to the growth of the economy particularly the tourism industry while enhancing employment. Federal, state and local government support for this is very much required.
“The destruction of this ecosystem to make way for the road would undoubtedly create a huge void, which would be very difficult to fill given what the ecosystem represents to many Nigerians and the outsize role the Landmark is playing in spotlighting Lagos as a viable tourism destination on the global stage,” he said.
Over its 27 years in existence, Landmark has been and continues to serve as a home to several Fortune 500 companies such as PricewaterhouseCoopers (PWC), Regus, Johnson & Johnson, Ansaldo Energia, Facebook (Meta), Google, IBM, Procter & Gamble, Novartis, Bosch, Universal Music Group, Cisco, Netapp, JP Morgan, Hewlett Packard (HP), and Nokia Siemens Network.
The ecosystem regularly hosts events of a regional or international stature by organisations such as Google, Facebook, and YouTube. Other events include international conferences and exhibitions, movie premieres, and concerts by Grammy awardees or nominees. It also hosted the only privately run COVID Isolation Centre in 2020 in partnership with the Young Presidents Organisation (YPO) and the Lagos State Government, as well as and hosted a vaccination centre.
The ecosystem welcomed over three million visitors in 2023; a significant number of which were from the diaspora or foreigners, who came to enjoy “Detty December” in what is arguably the premier leisure and tourism destination along the West African coastline.
The ecosystem has indeed become a cultural phenomenon in Nigeria catering to the aspiring middle class and beyond and helping to establish the culture of “staycations” for many who would otherwise vacation abroad thus saving millions in foreign exchange.” It is also a favoured meet-spot, particularly for the younger demographic with our Ecosystem frequently featured in Nollywood movies, Afrobeat music videos, influencer social media posts and the like.
MEANWHILE, Chairman/CEO, YF Consult Nigeria Limited, an estate surveying and planning firm, Abayomi Falana, said: “This ill-conceived decision by the Lagos State government’s Development Control team, revealed the shallow depth of knowledge and understanding of the government officials in the specialised field of economics of environmental planning.
“There’s is always a better way to undertake the proposed coastal highway project to minimise negative impacts on the existing structures on the ground. The proposed coastal highway project was conceived years ago by the Federal Government; it is only natural to expect some material changes in circumstance, which ought to bear in the review of the major highway scheme.”
One of which is its cost-benefit effects on well-established and thriving communities including the Landmark Leisure and Holiday Resort Development.” Falana advised that the proposed Lagos 4th Mainland Bridge should be integrated into the proposed Lagos-Calabar coastal road to enhance the road transport infrastructure and connectivity network along the Lekki-Ajah development corridor.
“Ideally, the intersection point for both major road infrastructure projects should be the starting point for the proposed Lagos-Calabar coastal road in Lagos State. This ensures proper and sound planning considerations for the public good,” he added.