Lagos - Union Homes, a mortgage finance company, says it intends to bring down interest rates on mortgage loans to about 12 per cent.
An official of the company told newsmen in Lagos that this is against the current 18 and 19 per cent being charged by mortgage companies in the country.
He said that response to the company’s on-going offering of its Hybrid Real Estate Investment Trust (REIT) had been very impressive, adding that workers are “buying into it”.
“The response gets better by the day,” the official said.
Reports say that the company is offering 970 million units of shares of N50 at N51.50 per unit to subscribers.
The offering, which opened on Aug. 19, will close on Sept. 25, 2005.
The official said that the company would comply with SEC directive to sell the shares between Aug. 19 and Sept. 25 to avoid oversubscription.
He said that some rich individuals had approached the company to buy units of shares worth N5 million but that the offers were turned down so as to give opportunities to many Nigerians to buy the shares.
According to the official, loans will be made available to customers to buy shares and “procure real estate mortgage through this scheme”.
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