The Nation Newspaper

Tag: Resort Savings

  • American equity firm stakes N77b on Resort Savings

    Milost Global Inc-an American private equity firm is staking $250 million, about N76.5 billion, on Resort Savings & Loans Plc in another major acquisition after the American firm entered into a binding commitment to invest $350 million in Japaul Oil & Maritime Services.

    Milost, combining its traditional equity and debt approach, will be staking $100 million as equity capital and $150 million as debt capital. Already, Milost Global and Resort Savings have signed a commitment letter, giving the private equity firm the mandate to proceed with due diligence and other regulatory issues. The board of Resort Savings had approved the proposed transaction at its meeting on February 26, 2018.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) yesterday, the board of Resort Savings indicated that the mortgage bank has executed a $250 million deal with Milost Global. The regulatory filing was signed by Managing Director, Resort Savings & Loans Plc, Mr Olayemi Rabiu and Chairman, Resort Savings & Loans, Senator Sunday Fajinmi.

    With the signing of the commitment letter, Milost Global will conduct due diligence on Resort Savings after which substantive agreement and other documentations will follow. The Central Bank of Nigeria (CBN) has been notified of the proposed transaction.

    The board of Resort Savings indicated that the transaction will be executed in phases through private placement to Milost Global and another local investor, which is currently undergoing approval process at the apex bank.

    “It is the belief of the board and management that the proposed investment will assist the bank in no small way in recapitalising the business, growing capacity and in becoming the leader in the mortgage finance industry. With this, we expect to be able to deliver impressive returns to our shareholders and satisfy the expectations of our other stakeholders in the very near future,” the board stated.

    The Nation had reported that Milost Global is seeking to invest more than $8 billion or about N2.6 trillion on Nigerian investments as a demonstration of the New York-based firm’s confidence in the Nigerian economy.

    Headquartered in New York City, Milost Global Inc is at the intersection of creative investing and value creation and has more than $25 billion in committed capital. Milost provides alternative capital, mezzanine finance, and alternative lending to a broad range of industries across the world including technology, transport, cannabis, education, distribution, mining, oil and gas, financial services, healthcare, pharmaceuticals, real estate, alternative energy and infrastructure development.

    “Milost is very committed to the further advancement of the Nigerian economy with over one third of funds being committed to Nigerian investments,” Milost Global had stated in an official statement announcing the arrival of the senior leadership of the firm in Nigeria two weeks ago.

    The senior leadership of the American private equity firm was led by the Managing Partner and Chief Executive Officer, Mr Kim Freeman and Senior Partner & Chief Investment Officer Mr Solly Asibey. During the one-week tour of Nigeria, Milost Global executives met with the management of the firm’s  portfolio companies in Nigeria including Primewaterview Holding Nigeria Limited, Femab Properties Limited and Japaul Oil & Maritime Services Plc. Milost Global also concluded the Resort Savings’ commitment during the tour.

     

     

  • Resort Savings eyes growth with Abuja land deals

    Resort Savings & Loans Plc, a mortgage bank quoted on the Nigerian Stock Exchange (NSE), plans to further leverage its turnover with ongoing sale of properties in the Federal Capital Territory (FCT), Abuja.

    Head, business development, Resort Savings & Loans Plc, Bisi Bello, said the mortgage bank has begun the marketing and sale of undeveloped plots of land at different locations in Abuja. The land  located at Kuje, Kurudu-1 and Kurudu Hilltop belongs to Mahfas Investment Limited.

    She said the mortgage bank will market the land as well as allow instalmental payment upon the down payment of 30 per cent by prospective buyers.

    “All that is required from the prospective buyers is to open account with Resort Savings and make available the 30 per cent down payment while the balance could be spread over a reasonable period,” Bello said.

    She urged all prospective home owners to open account with the mortgage bank as well ensure the deposit of the 30 per cent initial payment to be part of the beneficiaries of the plots.

  • Resort Savings woos customers

    Resort Savings and Loans Plc has instituted a reward-system for all customers that maintain a certain minimum balance in their accounts over a period of time.

    Head, Business Development, Resort Savings and Loans Plc , Mr Yemi Popoola, made this known  during a chat with reporters in Lagos on the bank’s efforts at putting smiles on the faces of its teeming customers.

    According to him, the bank has over time introduced numerous customer-friendly products while the reward system is the bank’s own way of giving back to its customers.

    “Our customer base is growing by the day and a lot of people are getting to identify with us. The only way we can make them have a sense of belonging is to ensure that they are not only rewarded for banking with us, but also for introducing other customers to all mortgage related products,” Popoola said.

    He outlined that the reward-system will recognize customers who open Resort Reward System Account and build up team by introducing other customers to open accounts with the mortgage bank.

    He added that introducing new customers automatically qualifies the facilitating customer to become a team leader while the people introduced become his team members.

    “As a team leader you get paid monthly interest on the balances in the account of your team members. The larger your team account balances the higher the reward amount paid to you. Team members can also be elevated as leaders as they introduce customers,” Popoola explained.

    The gift to the customers will be commensurate with the balances maintained in their accounts with the mortgage bank. A customer who maintains a minimum balance of N100, 000 for instance will definitely get rewarded more than those with lower balances. The beauty of this reward system is that all customers will get rewarded so far they maintain a minimum balance over a period of time.

    He encouraged customers of the bank to make inquiries at every branch of the bank to know what will accrue to them depending on how much they want to maintain in the bank as their minimum balance.

    He observed that the banking culture in Nigeria is improving by the day noting however that there is enough room for improvement in the mortgage sector of the economy.

    “Gradually Nigerians are embracing the banking culture but we believe we are still largely under-banked. So many people are still not using the bank and that is why we think a reward system where people get rewarded for banking with us will attract more customers and make them have a sense of belonging. We also believe a reward system will also make customers know that we care for them,” Popoola said.

     

  • Resort Savings targets 2,753 housing units in first half

    Resort Savings and Loans Plc will deliver more than 2,753 housing units in Lagos and Ogun States in the first half of this year.
    Managing Director, Resort Savings and Loans Plc, Mr Abimbola Olayinka, said the housing units would be built under mortgage terms as part of efforts to make housing affordable for Nigerians.
    According to him, the 2,743 housing units will include the current development of the Resort Estate Ofada, with over 400 housing units, tastefully finished two and three bedroom terrace bungalows, which Nigerians will be able to access at affordable prices. Another is the Resort Pearl Garden Sangotedo, which will have at least 80 housing units.
    He noted that it its bid to strengthen its position in the housing sector, the bank is partnering with a lot of developers in either financing their projects or providing mortgage facilities to the off-takers at affordable interest rates.
    Giving an insight into the existing and on-going projects and partnership with developers, Olayinka added that some of these estates include the Teju Royal Garden Estate Okokomaiko, which has over 600 housing units of one and two bedroom terrace bungalow, three bedrooms semi-detached and three bedrooms fully detached bungalows. Apart from the accessibility of the estate due to the current development of the Lagos-Badagry Express Road as well as the proposed Rail track to link Marina Lagos end, the price of the houses are very affordable.
    He outlined other where the bank has on- going projects and partnership to include the Dreamville Estate, Owode –Ibese road, Ikorodu, which has over 120 housing units in various stages of development, Dabis Royal Estate off Allen Avenue Ikeja, South-drift in Lekki and Gracious Gardens among others.
    He noted that the bank has been able to bridge the housing gap by creating over 4,000 housing units in recent period.
    Outside the western zone, Resort Savings’ projects include many estates in Abuja including the Jedo Mass Housing Estate, in Ushafa Bwari area council with over 1,000 housing units under construction; Mahfas Sunshine Estate, Kurudu, Abuja with over 500 housing units completed and over 1,000 units are in various stages of completion; Resort Court Karu, Kubusa Gardens Estate, Orchards Estate, Lokogoma, Von Garden City Estate and Shelter view, Maraba, Abuja.
    Olayinka said his company plans to create at least 5,000 housing units in Abuja and it’s environ through mortgage creation.

  • ‘How directors, insiders run down Resort Savings’

    Former directors of Resort Savings & Loans Plc and other insiders have nearly N4 billion in outstanding non-performing loans, more than three-quarter of the bank’s total balance sheet size, a document on the quoted company’s insider loans has shown.

    The former directors, who resigned in 2011, their family members and related companies, took various loans through different instruments, such as mortgage, overdraft, term loan, lease and staff loan and turned away from servicing the loans.

    A document on the outstanding insider credits based on the latest audit of the firm showed that the former directors and their cronies were indebtedness to the tune of N3.99 billion. The company’s total assets and shareholders’ funds were N5.24 billion and N2.87 billion respectively.

    Out of the 25 insider credits worth N3.99 billion, only one loan of N15.44 million, less than 0.4 per cent of total insider credits, was performing.

    The report indicated that the former directors appeared to have taken undue advantage of their membership of various strategic committees, including credit and finance committees.

    In the largest instances of the insider loans, the former directors awarded several loans to another quoted company where they served as directors. The report indicated that about N2.81 billion non-performing loans were related to that company as at the last audit.

    The hugely indebted quoted company engages in fund management, capital market operations, financial advisory and portfolio management. It is listed under other financial companies on the Nigerian Stock Exchange (NSE).

    The immediate past chairman of Resort Savings & Loans was reported to have taken several loans with about N42 million outstanding as non-performing on three facilities.

    A family member of the former chairman has more than N39 million outstanding as non-performing loans on two facilities, which he had abandoned.

    According to the document, a mortgage and overdraft were granted to the relation of the former chairman but he has since abandoned the facilities. The company indicated it has already instituted action to recover the facilities.

    Another director has more than N111 million outstanding from mortgage loan and staff loans that were granted in 2008. The last audit was dated December 31, 2011.

    The company stated that another director, who had obtained an overdraft in 2008 and turned away from servicing the loan, has about N47.15 million outstanding. The director, the company stated, has been “making paltry payment” sequel to demand made on him.

    A market source said the bad loans might not be unconnected with the huge funds poured into the stock market bubble between 2007 and 2008 and were trapped in unrealizable assets as recession kicked in mid 2008.

    In latest review of the company’s operations, management of Resort blamed the “high volume of insider related non-performing credits” for the losses suffered by the company in the past two years.

    The management report indicated that provisions for the non-performing loans adversely impacted the profit and loss and balance sheet positions of the company.

    The report stated that the company has referred uncooperative insider-debtors to the regulatory and enforcement agencies while efforts were ongoing to recover other outstanding loans.