“Suji,
if I don’t get my money, I would have to report you immediately. I will
prosecute you to the fullest extent of the law”
This was the message I received from
a friend of mine who had entrusted us and bought a project off-plan from us. He
was not patient enough because he was yet to see the building rise, forgetting
that just like the Chinese Bamboo Tree, the bulk of the work in a high-rise
building is in the preparation, design, approval and foundation.
One hot Saturday afternoon, I had
visited the Giuliano site during its construction when a man drove into the site,
in a Toyota Corolla, cladded in a short and looking very simple. No sooner had
he parked his car than he started asking a lot of questions while admiring the
building.
“Chai, This building is growing very fast! I like the building process and the structure. Are your form works DOKA? What type of blocks are you using? What is the mix ratio of your concrete? This is the best I’ve seen around here”.
With the way he was talking, I
actually thought he was a developer and I was hesitant at first about giving
him a tour of our project because most developers do this to steal competitors’
trade secrets. I didn’t mind because at Sujimoto we keep innovating. So, I
finally succumb to my passion for what I do and took him round so I could also
see the progress of the work.
Two hours after the tour, he told me
that this project was almost done and he was looking at investing some
money. I spoke passionately to him about
our new projects, the features and facilities and what they would look like
upon completion. I showed him the land across the street, though there was no
building he could visualise the outcome. He took interest and said he would
see me in my office on Monday. True to his words, he showed up on Monday with a
request to buy 2 units. As at that time, we were selling one unit for 500
million but we were still finalising the drawings and the permit. I
explained to him what the project would look like and he trusted the project,
loved it.
“Nwoke’m,
give me 2 units and I will give you 500million,”
I told him I couldn’t sell each unit
for 250 million but as an Igbo man, he ensured he convinced me until I gave
him 300 million.
To which he responded, “Not bad. I will take the 2 of them and I
will give you 600 million. 300 million now and 300 million later”.
Right on the spot, he gave me 100
million. It was quite baffling because I wasn’t expecting it. Also, it came as
a surprise to me because this was someone that I just met a few days ago, he’s
heard about Sujimoto but he doesn’t know me so much, yet he trusted us to pay
for a building that we had not even started.
A week later, the man came back and
said he doesn’t want the 2 units anymore but will only take 1 unit. I consented
to his request but told him the price would change. However, after much
negotiation, I left the price at the initial offer.
We moved to the site and started
preliminary work. Around that same time, we had a major event to celebrate our
5th anniversary as an organisation, and a 700million naira loan to pay back. By the time we were done with all our deliverables, we were cash-strap.
It was a very tough period for us as an organisation but we kept afloat through
sustained perseverance, diligence and a strong attitude of never-giving-up.
The client became very impatient and was always asking, “Why the construction was slow.” We tried to make him understand the kind of work that goes into the foundation of a high-rise building. We erected102 piles, going 45 meters deep which is like stacking up two Ocean parade towers upon each other. Covid-19 happened and work was slow. However, he asked that we return his money back to him. At that time he had already paid almost 180 million, so we admonished him to exercise patience, that the project will soon commence and the price would increase, but he insisted that he wants his money back and even threatened to report us to the authorities. It was a tough moment for us, we needed money to continue the work and for other things, but we had to call on our principle of integrity and pay his money, albeit instalmentally.
In less than a year and a half after he
collected his money, the same unit that we sold to him for approximately 300
million naira is now selling for 1.3 billion naira! This is the benefit of
buying off-plan.
Off-plan Investment in real estate is
the only investment that can move you from 50% to 200% in a short while.
However, there are fundamental principles you must look for when buying off-plan and the most important is to look for a developer with a high sense of
integrity because there would always be unforeseen circumstances like the
COVID-19 epidemic, but you need a Developer that will ensure your investment is
safe irrespective of what happens.
These are the things you should look
for when trying to buy off-plan.
1. Location is important
2. Look for a developer with a strong
sense of integrity;
3. Look for developer focuses on
quality development;
4. Look out for a developer that can
deliver on projects and within the agreed deadline (In unforeseen situations, unstable economy, Kalo-kalo system of our
forex market, patience is a virtue);
5. Make your payment on time and you
will be surprised that a lot of projects you bought for 1 million dollars will
be worth 3 million dollars.
Our
next project, the LeonardoBySujimoto, a luxury high-rise waterfront building in
the heart of Africa’s most expensive square metre - Banana Island, set to be
the number one address not just in Nigeria, but also in Africa. With top-of-the-range amenities and unrivalled features, the Leonardo has sold over 25% even
before we break ground and the price has gone over 120%. At the moment, the 2
Bedroom is sold out with only 2 units left, but the 3 Bedroom is selling for
$1m and the 4 bedroom for $1.2 m. When we break ground in a few weeks, the
3bedroom that is selling for 1m will sell for $1.2m and upon completion is
estimated to sell for $2.5m
As
LeonardoBySujimoto gradually rises, while procrastinators are still wondering
what the project is about, smart investors who have already taken advantage of
this unique offer, have seen an increase of about 120% ROI. It is important to understand the Ikoyi/Victoria Island
real estate market, while the BEST and most
expensive 3 Bedroom Apartments in Ikoyi are selling for between $1.5m to $3m,
we are optimistic that with the features and facilities we would have at the
Leonardo, the project will definitely beat the best not only in Nigeria but the
whole of Africa.
We have researched, seen and visited the best projects in Ikoyi,
Eko Atlantic, Cape Town and Sandton. What we have done is to design a building
that beats the best.
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