A Memorandum of Understanding (MoU) was signed recently by Nigeria Mortgage Refinance Company (NMRC) and Alpha Mead Development Company (AMDC), a Strategic Business Unit of Alpha Mead Group in furtherance of their quest to improve access to quality affordable homes and deepen Nigeria’s mortgage market.
The MoU, which was signed on the side line of this year’s edition of Abuja Housing Show, will allow AMDC and NMRC to work together on housing finance, training, research, advisory and project structuring to increase the stock of affordable housing in the country. It will also provide and permit relevant technical support and advice to Alpha Mead in relation to the residential real estate market.
Expectation is that the partnership will make it easier and faster for customers pre-qualified by AMDC to access mortgage from the member financial institutions of the NMRC.
“This is a remarkable move; we decided to work with Alpha Mead because of its innovative and technology-driven approach to increasing affordable housing stock in Nigeria and the facilities management expertise of the company to also maintain the projects after construction”, said Charles Inyangete, MD/CEO of NMRC.
The CEO was of the view that the combination of these capacities that Alpha Mead brought to the partnership would give the market the assurance that property prices could be sustained, going forward, and that they could all deliver to the specific needs of the customers.
“So, we at NMRC keyed into this relationship because we will like to see this Alpha Mead model succeed. We believe it is a model that will allow more and more transaction in the housing development value chain and feed our member institutions with more projects to finance”, he added.
Femi Akintunde, Group Managing Director of Alpha Mead, expressed delight at the partnership. He described the partnership as a demonstration of NMRC’s commitment to reducing the nation’s increasing housing deficit and an encouraging recognition of Alpha Mead’s innovative approach to delivering quality and affordable housing to Nigerians.
According to him, “it is becoming increasingly obvious that the conventional building methods cannot bridge Nigerian housing gap, especially in the midst of challenges that face the affordable housing value chain”.
“What we bring to the market are the possibilities of addressing the challenges of affordability and quality which are two critical issues inhibiting the nation’s affordable housing market”, he explained.
Akintunde noted that the current structure of the market makes it a tall order for people in the middle-income bracket to own homes because of the high entry barrier. He also pointed to the challenges of lack of skilled artisans, the high cost of building materials, and lack of standardised building and quality processes as challenges to quality building in the market.
“On the one hand, we are addressing the issue of quality by using technology that guarantees repeated quality, straight edges and structural integrity; and on the other hand, we are addressing the challenges of affordability by using our technology to achieve up to 15 percent saving for our customers”, he said.