EXPOSED: Four Years After Full Payment, Meridian Luxury Park Estate Refuses To Deliver N28m Property To Diaspora Client

Nearly four years after completing an outright full payment for a semi-detached duplex at the Paradise Court Estate, Ms Oduwole Airat Sade’s expectation has only been met with unimagined disappoinment and frustration.

The real estate developers under Meridian Luxury Park Estate have rather been demanding more funds for the property they have defaulted in delivery as specified in their offer letter.

The Nigerian Voice gathered that Ms Oduwole, who is a Nigerian-UK resident, paid the sum of Twenty-Eight Million, Five Hundred Thousand naira (N28,500,000.00) for a unit of 5 bedroom semi-detached in Orchid Paradise situated along Lekki Epe expressway in Eti-Osa Local Government Area, Lagos State.

While the payment was duly completed on October 7, 2020, two months ahead of deadline for outright payment, the developers have conspicuously refused to complete the building as expected.

Narrating her predicament to our correspondent, Ms. Oduwole expressed disappointment in the handling of the property by the developers, saying that such action was the reason many Nigerians in Diaspora would often withdraw from investing in the country.

How Her Journey Started With Meridian Park Estate

Driven by passion to invest in Nigeria, Ms. Oduwole decided to channel her funds into real estate. When she reached out to the Meridian Park Estate via their website. She was thereafter contacted by a sales representative identified as Lola who introduced Paradise Court to her. Having been told various units in the estate, Ms. Oduwole later subscribed to 5 bedroom semi-detached duplex at the Paradise Court.

The offer letter for the property was issued on August 28, 2020, pegging the price at N28,500,000.

The letter titled: “OFFER LETTER FOR THE SALE OF A UNIT OF 5 BEDROOM SEMI-DETACHED DUPLEX AT THE PARADISE COURT ESTATE BY CHEVRON ON OFFPLAN BASIS”, affirmed that the delivery of the property would be twelve months after completed payment with 3 months grace period.

“Default/Remedy: In the event that there is a default in the payment structure as agreed or the Purchaser wishes to withdraw from this agreement at any time before the completion of full payment for the property, please note that Meridian Luxury Park Estates reserves the right and sole discretion to revoke this offer for failure of the Purchaser to comply with the terms and condition herein stated and to effect a refund in line with its internal policy, less 10% of the total. Please note that this offer is exclusive of Estate Levy, VAT (payment at handover), Legal & Survey Fees and subject to availability of 5 Bedroom Semi Detached at Paradise Court Estate, by Chevron on or before August 31, 2020,” the letter read in part.

It was learnt that the payments, which were done in five parts for outright subscription to a Sterling bank account belonging to Meridian Park Estate, were fully completed on October 7, 2020.

The sequence of the payments were as follows:
September 1, 2020 (N500,000),
October 2, 2020 (N10,000,000),
October 2, 2020 N10,000,000),
October 6, 2020 (N5,000,000)
October 7 2020 (N3,000,000).
Following the full payment, provisional allocation was issued for the property. The allocation letter, dated February 22, 2021 read: “Thanks for purchasing a Unit of Five bedroom semi detached duplex in PARADISE COURT ESTATE.

“You have been provisionally allocated to BLOCK SD 9A UNIT 1 in consideration of your payment.

“Further information on documentation in respect to transfer of Title will be communicated to you in due course. We appreciate your business with us. Congratulations.”

Meanwhile, following the allocation letter, Ms Oduwole recounted that there was silence on the part of the firm over keeping to the stipulated date for delivery. According to her, at several times, the delivery date was postponed without any justifiable explanation.

“For the past three years, I thought it was a scam because they have been stopping and starting the project. In my particular unit which is SD 9A, they have stopped works on the unit since 2023. The unit has been on first floor slab since January 2023,” Ms. Oduwole told our correspondent.

“But, ironically, they've continued building the other side of the estate. They just abandoned the unit. They have continued the phase 2 which is just on other side. They have completed half of the units of Paradise Court Estate 2 which was started in 2022.

“But, I keep asking them why they have continued building around my own project, noting that her unit is the last semi-detached unit they need to complete because they have completed from SD 1 to 8 but just abandoned my own,” she added.

She further disclosed a breach of contract letter which was sent to her in June 2024, where Meridian Park Estate formally informed her of their inability to continue the project for economic and financial factors.

The letter, dated June 7, 2024, was jointly signed by Adesola Ifabiyi, Head of Client Services Department Head and O.S Ogunsusi, Head of Client Services Legal Department.

The letter read: “It is with a high sense of responsibility that we write to inform you of the developments regarding our Orchid 1 project, which has materially and adversely affected our capacity to deliver your property in line with the terms of your offer letter.

“Due to the astronomical increases in the prices of construction materials, unsettling price fluctuations, increased labour charges, devaluation of the Naira and other adverse economic factors that have occurred in the past few years, it has become impossible to deliver the property to you on the terms and conditions of your offer letter.

“Despite our best efforts, we find ourselves in a situation where we are unable to deliver the property as initially projected.

“We understand the disappointment this information may bring and wish to categorically state that we have unsuccessfully explored various options to overcome these obstacles, all to no avail. In the light of this grim state of affairs, we are constrained to refund all monies paid on your subscription to the property and we are willing to refund the money paid by you with interest thereon at the rate of 10% flat.

“To enable us to activate the Refund mechanism, please note that you are required to sign the attached Refund Form supported with a valid means of identification and utility bill (not more than 6 months). The refund would be made within a period of (90) Ninety days from the date of receipt of the duly completed Refund Form and payable in three equal monthly instalments.

“In the event that you may wish to consider other available property options in our Ajah locations, we shall be willing to discuss this with you at your earliest convenience.”

Ms Oduwole told our correspondent that at a point of negotiations she was asked to pay additional 30 million naira but later reduced to 20 million naira by the Meridian Luxury Park Estate. She also accused the real estate company of engaging in shoddy business when dealing with diaspora clients.

“From the people I have spoken to, they (the company) seem to target people in Diaspora. Because everybody I have been speaking to were female and they told me the company keep saying they should come and bring more money or they abandon their unit and bully them into paying more money because we know nothing about Nigeria or we haven't got anybody on ground that could help and support us for anything. It a regular occurrence for them.”

Meanwhile, when The Nigerian Voice reached out to Meridian Luxury Park Estate via an email, the firm confirmed that Mrs Oduwole subscribed to one unit of 5 bed semi-detached apartment on off plan basis at Orchid 1 on August 28, 2020 at an offer amount of N28,500,000.

In a letter dated August 9, 2024 and addressed to our correspondent by Nneka Asiegbunam, Head of Legal Services Department and John Akujieze, Chief Legal Officer, Meridian Park Estate cited COVID-19 pandemic and EndSARS protests in Lagos as reasons for the deley in the execution of the project.

“The apartment was required to be completed in fifteen (15) months from completion of payment. 2. The project did not commence as planned because of the outbreak of the first and second waves of COVID-19 in Nigeria and End SARS protests in Lagos Nigeria with its attendant severe impact on the economic lives of the populace,” the letter read partly.

It added that unprecedented hike prices of construction materials, price fluctuations, increased labour costs and devaluation of Naira were economic factors against the project execution.

The letter read, “We are the internal Solicitors to The Meridian Lux Park Limited ("Our Client"), a Limited Liability company duly registered under the Companies and Allied Matters Act (As amended) and on whose specific instructions we write. Given the respect we have for our clients and your media outfit, it is important to respond to the issues your raised in your email for better understanding:

“1. Oduwole Airat Sade (client) subscribed to one unit of 5 bed semi-detached apartment on off plan basis in one of our estates at Orchid 1, Lagos on August 28, 2020 at an offer amount of N28,500,000.00 (Twenty-Eight Million, Five Hundred Thousand Naira). The client fully paid for this apartment in 2020 and was provisionally allocated to SD 9A Unit 1. The apartment was required to be completed in fifteen (15) months from completion of payment.

“2. The project did not commence as planned because of the outbreak of the first and second waves of COVID-19 in Nigeria and End SARS protects in Lagos Nigeria with its attendant severe impact on the economic lives of the populace. When the project finally took off, it was affected by astronomical increase in the prices of construction materials, unprecedented price fluctuations, increased labour costs and devaluation of Naira. The project is currently at the first-floor slab reinforcement works.

“3. Our letter to the client dated June 7, 2024 and titled, "THE STATUS OF THE DELIVERY OF ONE UNIT OF FIVE-BEDROOM SEMI-DETACHED DUPLEX AT ORCHID I LAGOS was one of the several updates we provided to clients to avail them of the status of their apartments. The letter under reference was the culmination of our several attempts to remediate the client including the provision of swap options in other project location which the client bluntly refused to accept.

“4. As mentioned in paragraph two above, we embarked on the construction of the 5- bedroom apartment for the client with good intention to complete and handover the apartment but our efforts were frustrated by factors independent of our control. Despite our good intentions, we found ourselves in a situation where we can no longer continue with the project without the repricing of the project and payment of additional amount by the client.

“5. The cost to completion of the 5-bedroom semi-detached apartment in current market pricing is estimated to N85,000,000.00 (Eighty-Five Million Naira) but we only requested the client to pay additional amount of N36,500,000,00 (Thirty-Six Million, Five Hundred Thousand Naira) as variation cost.

“6. The client objected and requested for a considerable level of concession even with the disposition of lack of trust in the project. After extensive discussions and meetings, our client was granted a concession of N20,000,000.00 (Twenty Million Naira) and requested to pay the sum of N16,500,000.00 (Sixteen Million, Five Hundred Thousand Naira). The client offered to pay only a concession of N10,000,000.00 (Ten Million Naira) as variation price with a caveat that the property must be delivered within 60 days adding that she had lost confidence in the capacity of the company to deliver the property.

“7. Our letter dated June 7, 2024 was a fall out of our several attempts to remediate the client and her loss of confidence that the company cannot deliver the property even with the price variation requested. Considering the refusal of the client to take a swap option in our Ajah or Awoyaya locations and her unwillingness to pay additional variation price of N16,500,000.00 (Sixteen Million, Five Hundred Thousand Naira), we are left with no choice than refund her the money paid for this property which was N28,500,000.00 (Twenty-Eight Million, Five Hundred Thousand Naira). Our offer to pay an additional interest rate of 10% flat is an act done in good faith as her offer letter did not provide for that interest rate.

“8. The client's insistence to be refunded on current market value of the property did not take into consideration the fact that this transaction was consummated in Naira, our operational accounts are in Naira current accounts and project had begun with heavy costs incurred. 9. The offer to refund is the last option available to us as the client had rejected other remediation options. The offer of refund comes at a heavy cost to the company and it is done for the protection of our brand.

“10. The company did not deliberately renege in its obligation to deliver the apartment within the timeline rather the contract was frustrated by circumstances independent of the control of the company. Frustration of contract will not in any way damage the company's reputation.

“11. Finally, we wish to reiterate that the refund of money paid by the client is our final option for the resolution of the matter and if the client refuses our refund and relocation options, we may proceed to determine the contract as having been frustrated.”

Meanwhile, in her response to the company’s stance, Ms. Oduwole discarded the excuses as flimsy and frivolous, noting that her unit was sold when cases of COVID-19 were getting low in 2020. She added that the company has continued building phase 2 of their estate in the past two years.

“They have focused on building phase 2 over the past 2 years. How can they use COVID-19 and cost of materials when they have continued building other estates.

“EndSars was only 2 weeks how can that affect it. They sold the unit in 2020 as COVID-19 was ending. How is that an excuse?,” she questioned.

She further said contrary to their letter, there was not time before June 2024 that the company told her that the project would not be delivered.

“No point before 27 June 2024 did they say they couldn't deliver. Actually I have several emails where they kept giving me different delivery dates,” Ms. Oduwole said.