The Real Estate War Between Exxon Mobil Cooperative Society And Primewaterview Properties

The quest for prime real estate in Lekki has taken a new dimension as Exxon Mobil Staff Cooperative Society and Primewaterview Limited over a said breach of contract. Exxon Mobil staff cooperative society is alleging Primewaterview properties is attempting to deny it of an estate it applied for and have dragged the real estate company […]

The quest for prime real estate in Lekki has taken a new dimension as Exxon Mobil Staff Cooperative Society and Primewaterview Limited over a said breach of contract. Exxon Mobil staff cooperative society is alleging Primewaterview properties is attempting to deny it of an estate it applied for and have dragged the real estate company alongside 4 others to a Lagos high court.

Sterling Bank Plc was also dragged into the suit.

The disputed property in Lekki
The disputed property in Lekki

Find excerpts from a Thisday report.

Exxon Mobil’s statement says: Primewaterview Limited, had on September 14, 2007, offered them to go into joint development alliance in respect of the proposed Primewaterview Garden 2 Estate, Ikate-Elegunshi, Lekki, Lagos. On February 5, 2008, they agreed to participate in the said proposed estate development on a subscriber/owner basis, which was subject to a written agreement being executed between them and the first defendant, Primewaterview Limited.

The cooperative society stated further that by an agreement dated March 31, 2008, they agreed to purchase on behalf of its members and the first defendant, Primewaterview Limited, agreed to sell to them ‘175 reserved units’ of three bedroom luxury flats with boys quarter, (comprising Blocks A to J), at a fixed price of N26 million. It was also agreed that the claimant shall make an advance payment of 30 percent of the contracted purchase price as seed money for the commencement of the project construction works, while the balance of 70 percent shall be paid upon completion.

The claimant further stated that pursuant to the said agreement, sometime in the year 2008, they first paid to the company the sum of N1.365 billion, representing the 30 percent consideration of the 175 units raised through the subscriptions of its interested members. They also claimed that some of its members who subscribed for the said apartments had to take personal loans from their various bankers to support their subscriptions to the scheme.

The cooperative members explained that the first defendant, Primewaterview Limited, however, defaulted to deliver the project as contracted within 18 months from the commencement of the project despite the fact that it received as at when due the agreed seed money of N1.365 billion.

They added that by a letter dated November 5, 2009, the company approached them for additional funds to facilitate the completion and delivery of the said 175 units of the three- bedroom flats with boys’ quarters, which had been delayed beyond the date contracted by the Primewaterview Limited.

The claimant, it was gathered, averred that due to the aforementioned development, they obtained construction finance facility from Access Bank Plc through whom an additional sum of N2.242 billion was raised and disbursed to the company in respect of the 175 units of three bedroom luxury flats with boys’ quarters subscribed in the sum of N3.76 billion. It was also agreed that the construction finance facility would be converted to mortgage facility for the subscribing members upon the completion and delivery of 175 units of the three- bedroom luxury flats with boys’quarters to them.

Despite persistent demands, the company failed to meet the several deadlines agreed between them, However, it came to their notice recently that the first defendant, Primewaterview Limited, had purportedly by a Deed of Legal Mortgage registered on June 20, 2011, mortgaged the entire estate (without excluding the 175 units of three bedroom flats with boy’s quarter already paid for by them) to Sterling Bank Plc for an alleged loan of N50 million. And that the purported Deed of Assignment dated May 4, 2012, and registered as number 96/96/2419, Sterling Bank Plc as mortgagor exercised its right of sale by selling the entire estate to the third defendant, Spartee International Limited for the sum of N100 million.

THISDAY was hinted that the claimant stated further that with the purported mortgage of the entire estate for a paltry sum of N50 million by the first defendant to the bank, it was a deliberate ploy by the first defendant to deprive them of the sum of N3.76 billion which they paid for 175 units out of 458 units comprising the entire estate, and to the knowledge of both Sterling bank and Spartee international the said estate is worth N20 billion.

The claimant also stated that the first defendant’s solicitor had, on April 24, 2014, in a letter, claimed that only 125 units are available for its members as against 175 units subscribed for, and that such will be delivered to them only on the condition that they agree to pay a new price ranging from N35 million to N38 million per unit as against the reserved purchase price of N26 million.

Consequently, the claimant is seeking a court declaration that they are entitled to the 175 units (Blocks A-J) of three bedroom luxury flats with boys’ quarters at the company’s Garden Estate, Ikate-Elegunshi, at the agreed purchase price of N26 million per unit upon the agreement dated March 31, 2008.

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