The Chief Executive Officer of Pelican Valley Nigeria Limited, Ambassador Dr Babatunde Adeyemo, has disclosed plans by the company to review upwards the prices of properties and contracted development across its estates, citing the rising cost of construction materials in the country as the reason for the decision.
In a statement on Saturday, Adeyemo, whose company developed estates including Pelican Valley Estate, Pelican Brief Estate, Pelican’s Ecostay Apartments and Pelican Greenish Acre Farm Estate, said the decision was prompted by fluctuating and steep increases in the prices of cement, granite, labour and other building materials.
According to the statement, Adeyemo made this assertion during an inspection visit to Pelican Brief Estate at the weekend to evaluate current construction costs and determine appropriate adjustments to property prices.
He noted that the firm remains committed to maintaining quality standards and ensuring that investors continue to enjoy high returns on their investments.
“We are reviewing the prices of our properties because construction materials have become more expensive. The price of cement is high, and the prices of granite and labour rates are high, among several other inputs that have also gone up,” he said.
He explained that the review would help the company maintain quality delivery on ongoing and future projects, recalling that the company had previously sold plots of land at Pelican Brief Estate for as low as N780,000 when the area was largely undeveloped.
He added that a plot of land there has appreciated significantly, to the satisfaction of many investors.
“Today, a plot of land there sells for about N15m, and we are considering reviewing it upward in the next few weeks to either N17.5m or N20m per plot,” he said.
He reassured clients and investors that properties within the estate offer strong returns on investment within a relatively short period, adding that the ongoing assessment by the firm’s quantity surveyor would help determine a reasonable margin to reflect the current realities of the construction market.
“We want to prepare the minds of our clients ahead of the review. Those who have not fully mobilised us for their projects need to be aware of the variations so they can plan properly,” Adeyemo said.
Also speaking during the inspection, a Fellow of the Nigerian Institute of Quantity Surveyors and immediate past chairman of the institute’s Ogun State Chapter, Solomon Ojo, said the review was inevitable due to prevailing economic conditions.
Ojo explained that the cost of major construction inputs such as reinforcement materials, cement, timber, plumbing and electrical fittings had increased significantly.
“It is important to review the rates inserted in the bill of quantities because the prices of construction materials have changed. If we continue to use old rates, it may affect the quality of projects,” he said.
He noted that the Nigerian economy’s dependence on crude oil often influences the cost of building materials, which in turn impacts construction projects.
Ojo emphasised that Pelican Valley’s management had demonstrated transparency in its operations and remained committed to delivering value for clients.
“If reinforcement that used to cost N1m now sells for N1.2m and the rates are not reviewed, it will affect the quantity and quality of materials used,” he said.
According to him, the planned review is aimed at ensuring that buildings within Pelican Valley Estates maintain structural integrity and meet industry standards.
“Pelican Valley does not cut corners. The goal is to ensure that clients get value for every kobo spent,” he added.
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