Local and foreign investors have expressed interest, through formal bids, to partner the Ghana Airports Company Limited (GACL) in the development of the Airport City II project.
According to GACL, the successful bidder will provide at least $100 million in unrestricted capital as the project’s initial investment. The designated project site is approximately 272 acres located within the Kotoka International Airport (KIA) enclave. The plan is to develop a high-end mixed-use commercial, residential, lifestyle and entertainment precinct. This will add to the Airport’s general landside infrastructure expansion program.
The initial phase of the project entails the development of a high-end site and services scheme to develop the precinct. The enclave will be fully serviced with quality infrastructure to deliver premium serviced plots for the different structured land uses. The service infrastructure includes water and power, roads and associated drains, landscaping, telecommunication, and security infrastructure.
The next phase of the project will include land allocations to individual investors for development in conformity with the approved Land Use plan. Specifically, this will be either through a joint venture agreement with GACL or outright lease, the company revealed.
In an expression of interest, GACL explained in details the responsibilities of a successful bidder(s). The successful bidder will provide the necessary funding for the construction of the infrastructure for the Initial Phase. The bidder may also be willing to develop some strategic properties in the enclave under three main financing arrangement.
The three (3) main financing arrangement
According to GACL, one of the arrangements proposed is for an investor to provide the requisite funding to GACL for the infrastructure works in return for an agreed size of land. The development of the land allocated to the investor will be subjected to adherence of the approved master development plan.
The second arrangement is for an investor who will undertake the construction of the infrastructure at their own cost in return for an agreed size of land. To clarify, the development of the land allocated to the investor will be subject to the adherence of the approved master development plan and the accompanying developmental controls.
The third option involves an investor who will partner GACL to construct the infrastructure and also develop some of the strategic projects in the enclave. Additionally, the investor will provide the financial capability, the technical know-how, and brand for the properties that would be developed. In the end, the partners will share proceeds from the entire project.
The Airport City Concept
The successful execution of the Airport City 1 project has transformed the skyline of the national capital. Some major developments in the Airport City One are Holiday Inn Hotel, Marina Mall, Vodafone and UT towers, among others. As a result, this has made Airport City one of the most sought-after business districts in the capital. Indeed, the Airport City 1 reflects of the quantum of foreign investment in Ghana’s real estate sector.
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