PROPERTY DEVELOPMENT FIRM ACCUSES ORETOL OF BREACH OF AGREEMENT OVER TEN HECTARES OF LAND IN HAMPTON BAY
A property development company, Helli-Ellis Planets Limited has accused its partner Oretol Nigeria Limited of breaching a Property Development Agreement over a ten hectares land deal in Hampton Bay Estate in Eti-Osa Local Government Area of Lagos State.
In a letter to the Managing Director of Oretol Nigeria Limited, Hellis-Ellis through its lawyers, Paschal Baylon Umpaka and Co said that the two companies signed a Property Development Agreement dated 26th May, , 2019 for the mapping out and dividing into plots the ten hectares of land and that Oretol was to develop and construct mixed development holdings which would include 8 blocks of 96 flats, 23 detached houses and 35 terrace houses.
According to the law firm, the designs were specified in Schedules 1 and 2 of the said Property Development Agreement.
A copy of the letter acquired by our correspondent reads: “It was the agreement of our client and your company, in the said PDA, that our client’s equity contribution pursuant to the said PDA would be the ten hectares of land, and our client’s consideration under the PDA was valued at Four Billion, Five Hundred Million Naira for which our client would be entitled to the 15 undeveloped plots of land of the JV Area, 800sqm each, three blocks of flats, 8 detached houses and 12 terrace houses, valued Five Billion, Five Hundred Million Naira. “
The letter stated that Oretol’s equity contribution would be N11.4 Billion captured in the Priced Bill of Quantities dated December 2018 and that Oretol upon contributing the said amount would be entitled to the entire residue of Helli-Ellis Planets Limited‘a rights, title and interest in the infrastructure and the units and plots in the JV Area upon which Helli-Ellis would grant an assignment to Oretol.
However, Helli-Ellis accused of Oretol of failing to contribute its equity of N11.4 billion and did not build the agreed mixed development houses.
It also accused Oretol of selling off 45 plots of land and used part of the proceeds of the sales to carry out its obligation.
The law firm contended that the power of attorney executed in favour of Oretol stated that legal interest in the property in issue would pass only after the completion of the projects as in the PDA and that having not completed the projects, Oretol has no legal interest and can not pass any such interest to a third party.
“The claim of our client is that your company did not furnish the agreed consideration of N11.4 billion and did not carry its obligation as specified in Schedules 1,2 and 3 of the PDS which would have made it to be entitled to its benefits under the PDA, and your company, wrongfully sold plots of the JV Area and used the proceeds of the sales to execute some works specified in schedule 3 of the PDA, applied some to other desires and appropriated the rest, and has failed to execute and complete the project as agreed, and has harmed the title and interest of our clients in the land while pretending to have contributed its equity of N11.4 billion and pretending also to have performed its obligation under the PDA”, the letter reads.
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