Executive Information Memorandu m. October 2011

Transcription

1 Executive Information Memorandu m October 2011

2 Note to recipients This Executive Information Memorandum has been prepared by Frontier Capital Limited ( the Financial Adviser and Project Managers ) on behalf of Furniture Makers Village Limited ( FVL or the Company ) for the sole purpose of providing information to prospective interested parties. Each person, by accepting delivery of this document undertakes not to disclose any information contained therein or to reproduce the contents of this document in any form, in whole or in part, except with the express consent of the Company and its accredited representatives.

3 Contents Introduction Project Concept Project Justification The Promoter The Project Team Proposed Tenant Profile Key Components Indicative 3D Views Project Status Project Design Proposal How to Participate Facility Management Confirmed Anchor Tenants Respective Responsibilities Benefits to Tenants Contacts

4 Introduction Owing to increasing income levels and population, the demand for furniture in increasing. The Chair Centre Limited ( Chair Centre or the Promoter ) is one of Nigeria s foremost marketers and distributors of office furniture in Nigeria. The Promoter in partnership with Ogun State plans to bridge the supply gap within the Nigerian furniture market by creating an avenue for local production of wood and metal furniture. The Promoter is seeking to develop a one stop furniture industrial park in Ogun State under the auspices of the Public Private Sector Participation (PPP) scheme.

5 Project Description The Chair Centre is seeking to develop a one stop furniture industrial park ( Furniture Village ), that will comprise various segments of the furniture making value chain ( the Project ) The Project will be deployed in partnership with the Ogun State Government (OGSG) The Furniture Village, which will essentially provide infrastructure and facilities for furniture companies, will comprise various components such as saw milling section, natural wood and wood based furniture making section, metal furniture making section, cane furniture making section, furniture showroom, warehousing facilities, carpentry workshops and other related companies In addition, the Furniture Village will provide other related facilities including residential accommodation, food court, banking services court, in-bound and out-bound haulage services etc The location for the project is a 30 hectares parcel of land along Lagos - Ibadan expressway, which has been provided by OGSG as part of its contribution; including development of required infrastructure of road network, drainage, water and electricity

6 Project Description Contd The Furniture Village will comprise mainly two types of tenants: Sub-owners These are medium to large furniture manufacturing companies who will buy land at the Furniture Village and build their own factories at own cost. The residential area will also be developed under this arrangement Other Tenants These are various companies in the furniture industry as well as other related and supporting industries; mostly small and medium who would rent spaces in buildings built by the Furniture Village at own cost These two tenant types form the basis for revenue for the Furniture Village SPV

7 Project Justification Creation of a convergence in one location, various players within the value chain of furniture making thereby reducing logistics challenges Providing an opportunity for small furniture players and furniture artisans access to machinery, equipment and input materials in one location in order to be able to produce high quality furniture Bridging the supply gap for furniture following the recent furniture importation ban and increasing demand arising from increasing investments in public and private schools, universities and hospitals influx of foreign investments as well as expanding middle class in Nigeria Access to market particularly for the small operators Access to training and development

8 The Promoter The Chair Centre Limited is the promoter of the Furniture Industrial Park initiative Chair Centre is a Nigerian company incorporated in 1992 to undertake various furniture businesses, including supplies, installation and maintenance of office furniture to various companies in Nigeria Headquartered at Lekki, Lagos, the Company imports semi-finished components for full assembly and sale to the local market The Chair Centre Limited owns and operates one of the largest office furniture showroom in Lagos The Chair Centre has set-up two other furniture companies in Nigeria as follows Sokoa Chair Centre Limited, which is partnership with Sokoa SA France. The company is the largest chair assembly plant in Nigeria Furniture Manufacturers Mart Limited, which is a furniture components manufacturing company A third furniture set-up is in progress, which is SCC Algon Limited, a partnership between Sokoa Chair Centre Limited and a Spanish company. The company manufactures metal frames and components for furniture companies The Chair Centre Limited has incorporated a special investment vehicle, Furniture Makers Village Limited (FVL) FVL will own manage and operate the Furniture Industrial Park

9 Proposed Tenant Profile The Project will target various companies within the Nigerian furniture industry and other furniture related businesses to take up spaces within the location The target tenants will be identified along the lines of the value chain of furniture making as shown in the figure below:

10 Key Components The Furniture Industrial Park will consist of various components such as: Key furniture anchors such as kiln drying Saw Milling Section Carpentry workshops Cane furniture Section Metal furniture Section Furniture showroom Accessories providers Warehousing facilities Bank Court Food Court, etc Limited residential development for occupants

11 Indicative View of Show Room

12 Indicative 3D View

13 Master Plan Showing Phase 1 Development

14 3D Schematic Design Fully Occupied

15 Phase 1 Development The development of the furniture village will be in phases with the first phase being the following: Infrastructure development for the entire site (site and services) Development of mixed use building for other tenants (expenditure of FVL)

16 Benefits to Participants Access to equipment, services, markets and other furniture making related facilities in one location Source of materials for all the products and services along the lines of the value chain of furniture making Location provides easy access to Lagos and other South West markets Provision of adequate infrastructure such as power, water etc

17 How to Participate Sub-owners Will secure land through a long lease with FVL and build their factories or shops to their specifications at own cost subject to standards set by FVL Others Tenants Will rent spaces in the mixed use buildings within the industrial park to suit their operations All sub-owners/other tenants will pay an annual service charge for facility management A showroom within the industrial park will be set-up to display products produced within the village All tenants will have access to display their products in the showroom for sales to third parties

18 Confirmed Anchor Tenants Includes: The Chair Centre Limited: To own and operate the Showroom Furniture Manufacturing Mart: a company involved in the local production of high quality furniture components for office furniture, kitchen and bathroom furniture, other household furniture, etc SCC Algon Limited: a company specialising in metal fabrication of metal parts for furniture

19 Respective Responsibilities Party Furniture Village Limited (FVL) Role Ensure land and all other amenities are readily available for tenants in the Furniture Industrial Park Provide facility management services Sub-owners Secure land on a long lease to build factories or shops to suit their operational needs Pay an annual service charge to FVL Provide own back-up power Other Tenants Rent spaces within warehouse type mixed use buildings developed by FVL to suit their operational needs Pay an annual service charge to FVL

20 Business Innovation Facility s Support Assistance in accessing financing sources Identifying funding options Help in preparing application to funding sources Assistance in accessing technical Assistance Help is articulating technical assistance required Identifying technical experts Ongoing assistance to ensure inclusive business objectives are met

21 Contacts Mrs Ibikun Awosika Director The Chair Centre Limited Mob: Tayo Oduwole Executive Director Frontier Capital Limited Mob: , DL: