Abuja-based property development firm Wisdom Kwati Smart City Ltd. has filed a N10bn suit against Adamawa Mortgage Bank Ltd
The legal action follows alleged breach in a joint venture agreement between the two parties for a 20.5-hectare property development in Sangere Village, Yola South, Adamawa State.
The joint venture was established to transform the Sangere property into a large-scale residential development with work already underway and over N3.5 billion reportedly invested in the construction of over 200 housing units and estate’s infrastructure.
However, tensions arose when Adamawa Mortgage Bank allegedly withdrew from the agreement publicly.
In a statement on November 9, 2024, the bank warned prospective investors of the scheme:
“This is to inform the general public that Adamawa Mortgage Bank Ltd is not selling its land at Sangere-Wisdom Kwati Smart City. Anyone buying land at the property does so at his own risk.
“Take further notice that the bank has withdrawn from the joint venture agreement with Wisdom Kwati Smart City. Thank you. Signed Management.”
Following the statement, Wisdom Kwati Smart City Ltd, led by Chairman Mr. Wisdom Kwati, filed for an interlocutory and interim injunction.
The lawsuit names Adamawa Mortgage Bank Ltd and its Managing Director, Dr. Noris Giscard Stanley, as defendants, alleging breach of contract and reputational harm caused by the bank’s public renouncement.
On November 14, 2024, the High Court of Justice of Adamawa State issued an interim injunction, temporarily restraining the mortgage Bank from further actions related to the property until a resolution is reached.
The court ordered the defendants to respond to the claims and appear before the court within 30 days of receiving the summons.
The implications of the contract dispute are significant given the stage of the project. According to representatives of Wisdom Kwati Smart City Ltd, the company has invested over ₦3.5 billion in construction and developmental costs on over 200 buildings under construction at the site, of which over 50 units are at the finishing level of construction and infrastructural development well into the third phase of the company’s five-phase development plan.
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Industry observers suggest that a swift resolution of the dispute would be in the best interests of both parties and their investors, who rely on the stability of the joint venture to secure their investments.
The project, originally designed to develop 317 mixed housing units, is already well past its midpoint.
Wisdom Kwati Smart City Ltd has expressed commitment to seeing the project through to completion and ensuring that stakeholders are kept informed of any significant developments in the case.
Despite the legal steps taken, the real estate company has reportedly made several attempts to resolve the matter through dialogue.