By Johnson Olayinka.
Civil Society Organisation, Elites Network for Sustainable Development, ENetSuD, has revealed the market value and the worth of Kwara Hotel.
ENetSuD put the market value and worth of the controversial hotel between the year 2017 and 2022 at N3.9billion and N5.4billion respectively.
ENetSuD which engages in promoting good governance, transparency and accountability and ensures that public fund works for the citizens, based its submission on the valuation done on kwara hotel by the nation’s leading Estate surveyors and valuers ,Jide Taiwo & Co.
ENetSuD in a report signed by its Director, Investigation and Public Petition (Kwara Central), GambariVolvo, “Harmony Holdings Ltd (the investment company of the Kwara State Government) requested the service of Jide Taiwo & Co to carryout the valuation of interest for the purpose of determining the market value of Kwara Hotel situated at No 9A Ahmadu Bello Way, GRA, Ilorin.
“On the 23rd of October 2017, Jide Taiwo & Co inspected the Hotel for the purpose of carrying out the valuation as instructed”
In the 89-page letter and valuation report with file number VL/ILR/17/75/DA/AO/IO that was submitted by Jide Taiwo & Co to Harmony Holdings Ltd on 3rd November, 2017, a copy of which is now available with ENetSuD, the following key fact on the market value of the hotel is contained:
“The market value of Kwara Hotel as of 23rd October, 2017 is Three Billion, Nine Hundred and Fity Million naira (₦3,950,000,000) only”
In another 61-page letter and valuation report with file number VL/ILR/22/44/RT/NI/AU/AO that was prepared by Jide Taiwo & Co on 14th July, 2022 after a valuation visit on 5th July, 2022, a copy of which is also now available with ENetSuD, the following key fact on the market value of the hotel is contained:
“The market value of Kwara Hotel as of 5th July, 2022 is Five Billion, Four Hundred and Twenty-Seven Million, Four Hundred Thousand naira (₦5,427,400,000) only”
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Jide Taiwo & Co in the reports, “Market value is the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.
This market value was based on Cost Approach method of valuation, which provides an indication of value using the economic principle that a buyer will pay no more for an asset than what it will cost him/her to own an equivalent asset of equal utility, whether by purchase or by construction.
Thus the total construction cost of a new one is achieved through the application of a current construction rate to the gross floor area including other associated cost which is then depreciated to reflect present physical condition, functional and economic obsolescence on the property before adding the value of the bare site as at the date of valuation”.
ENetSuD said he made the Jide Taiwo & Co valuation public “to enlighten Kwarans on the worth and market value of Kwara Hotel between years 2017 and 2022, so as to determine whether the proposed investment of ₦17.8 billion to remodel and rebuild it is in the public interest and of economic benefit to citizens”
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