A Lagos-based law firm, Ken Osa-Oboh and Company has written to Messrs Deluxe Residence Limited seeking a refund of N80 million for the subscription for a three-bedroom flat at Empire Residence II, Water Corporation Way in Oniru, Lagos.
The Head of the Law Firm, Ken Osa-Oboh, who is representing Prof. Joshua and Dr Lara Otaigbe, said his clients paid N80 million to Deluxe to build and finish the building within 36 months in April 2021 but the developer failed to deliver the project as agreed until inflation caught up with the scheme.
Osa-Oboh explained that his chamber had written to Deluxe Residences Limited in respect of the development and both parties agreed on the refund. This followed an email to his firm by Deluxe last year that they were not able to continue the construction. According to him, efforts to get the developer to refund the money to date have proved abortive.
The Company Secretary, Deluxe Residences Limited, Adebanjo Owoeye, acknowledged the transfer of an interest in one unit of a bedroom flat with a full ocean view in Empire Residences II from Ima Agunbiade to Prof. Joshua and Dr Lara Otaigbe, the subscriber, and allocation of the unit.
The Legal Officer, Deluxe Residences Limited, Omotoye Ahmed, regretted any inconvenience that the Otaigbe might have suffered and reiterated that the project faced significant challenges and delays since its launch in 2018 due high rate of inflation, the persistent rise the cost of construction materials, as well as the impact of construction logistics, and underestimation of the cost of construction.
“Consequently, these factors have adversely affected our financial projections for the project. The expected funds from subscribers are not sufficient to cover the completion of the project. This is a challenging financial situation,” Ahmed said.
However, options offered by the company to resolve the matter, include a refund of the N80 million in tranches paid by their clients to the unit owner at the secondary market transaction within 120 days; the possibility of moving the subscriber to Empire Residences 1 Waterfront project on discounted payment of N100 million or paying variation amount for the current Empire Residences II project in the sum of N170 million, given the high rate of inflation.
Also, the Account Officer, Deluxe Residence Limited, Victoria Tosin, said Deluxe has plans to pay the money in instalments, but the law firm is so eager to collect the money in full. According to her, the Lagos/Calabar Coastal Highway project has affected the company’s schemes and contributed to the delay in refunding the payment.
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