The Real Estate Development Association of Nigeria said it plans to establish a Primary Mortgage Institution to facilitate its participation in the mass housing development in the country.

The President of REDAN, Chief Olabode Afolayan, who disclosed this in Abuja, said that the organisation has concluded negotiations to acquire about 1,000 units of high-tech block-moulding machine from South Africa at the total cost of N7 billion.

According to him, the mortgage company would oversee transactions relating to the sell of the proposed 400,000 housing units to be built by the organisation under its mass-housing scheme.

Afolanya explained that the floating the mortgage institution was necessitated by the desire to put in place a formidable mortgage institution that can assist Nigerians to own and manage their properties.

Under the terms of agreement for acquisition of the machine from South African-based Hydra Foam Incorporated, 1,000 machines are to be acquired and distributed to members of REDAN on credit with repayment period spread over three years.

The block-making machine costs N7 million each and has a unique advantage of using less cement in-take in block moulding.

He said the beneficiaries would be expected to pay N180, 000 per month and would enjoy 80-day moratorium to enable them to mobilise to site and commence work on their housing project adding that everything concerning the signing of the MoU is ready and is just awaiting ministerial assent.

"We are going to commence the process for the signing of the MoU in Pretoria in South Africa as soon as the minister approves it," he said

He said the acquisition of the equipment is part of the plan by REDAN to facilitate the actualisation of the projected 400,000 housing units in the next one-year.

The management board of the organisation at its meeting over the weekend in Abuja approved the floating of a Primary Mortgage Institution to serve as special project vehicle to oversee REDAN's mortgage housing business.

It was also decided that a land committee be set up under the chairmanship of the Deputy National President, Rev. Ugochukwu Chime to help create a land bank for the development of mass housing programme in the country.

He said the committee would visit the states and local governments to discuss with the authorities on how adequate lands would be made available for the housing programme.

"We intend to acquire land as cheap as possible so as to help bring down the cost of each housing unit to between N1million to N5 million and to make it easily available for average income earner," he said.

According to Afolayan, REDAN plans to use the mass-housing programme as a means of injecting more funds and stimulating the national economy. The implementation of the housing projects across the country is bound to creating new jobs and open up opportunities for manufacturers of building materials, he said.

He added that Aso Loans and Savings; a credit finance company owned by the Federal Capital Development Authority (FCDA) has opted to collaborate in delivering 10,000 housing units.