The Oasis Reporters
February 8, 2019
By Kato P. Ladan, Kaduna
The holding company managing all the legacy assets of the old and former Northern region, now broken into 19 northern states, the New Nigeria Development Company Ltd (NNDC) has entered into an agreement with Castles HMG Africa (Pty) Ltd to take over the operation and management of Arewa Hotels Development Ltd, (AHL) for the purpose of redeveloping and implementing a capital investment and transformation plan involving architecture, redesign, renovations, reconstructions, upgrade, revamping of its facilities and aggressive asset management of all assets under the ownership, management or control of Arewa Hotels Development Limited.
This was made known from the text of a joint press release jointly signed by Head Investment Supervision Directorate (ISD, NNDC), by Khalil A. Hamzat, on behalf of NNDC, Director of Corporate Services, Oriana Galletti and Director of Business Development, Wayne Gaddin on behalf of Castles HMG Africa Limited.
“The agreement fulfils NNDC’s vision for a stronger brand equity, a veritable platform for diverse revenue base through significant investments in infrastructure, assets and technology. Both NNDC and AHL currently own or operate five (5) hotels in Nigeria including the iconic Hamdala Hotel, Kaduna with plans to expand its operations over the next few years, a feat that it has achieved in the past across the 19 Northern States of Nigeria,” it stated.
The Ag. Group Managing Director of NNDC, Malam Shehu Mai-Bornu said, the signing ceremony is a culmination of over two years of discussions and that all the stakeholders have it as a duty to make the partnership work for the progress of all. He assured Castles HMG Africa that NNDC will be fully committed to the realization of the project.
“We are proud to continue consolidating and developing our collaboration with NNDC, our strong expansion partner. The mutual trust we have built up over the last two years forms the basis for the successful execution of the agreement.
“For us, the relationship represents a huge step forward in our growth. With this, we have the opportunity to further expand and strengthen our expertise and international hotel brand awareness in the Northern part of Nigeria”.
In response, Gregory Ozegbe, Chairman/CEO of Castles HMG Africa Pty Limited of South Africa, a subsidiary of Africa Alliance Group, says “We look forward to this new challenge”.
Castles HMG Africa Pty Limited targets investments in sizeable underperforming/dilapidated hotel properties in strategic locations, that can be refurbished, restructured or repositioned and where Castles HMG’s active operation/management strategy and expertise can be leveraged. This creates the conditions for attractive financial performance and long-term value creation. The partnership agreement aims to bridge the huge gap in the lack of branded Hotels in the North as compared to the Southern parts of Nigeria.
Castles HMG Africa (Pty) Ltd. is the hospitality arm of African Alliance Group, an international infrastructural development and investment platform consisting of companies positioned to collaborate and execute Infrastructural Development Projects (IDP) and Public Private Partnerships (PPP) aimed at improving the quality of life of indigenous Africans across the continent, with special focus on Hotel and Hospitality Development, Asset Management, Affordable Housing, Agriculture, Transportation, Power, Oil and Gas Assets, ICT, Arts and Entertainment.
Africa Alliance Group is an Infrastructure Development Company with focus on Real Estate, Power, Roads, Consultancy and Building Materials whose services are vital to key sectors of the Nigerian economy including Power, Telecommunications, Solid Minerals, Financial Services, Security, Education, Aviation, Infrastructure, Oil and Gas etc.
They are a professionally managed organization having a strong, stable and entrepreneurial management team with domestic and international experience across businesses. And they aim to lead in every market in which they operate, thus generating growth and superior profits and returns for its shareholders.
New Nigeria Development Company Limited (NNDC) was established in 1949 to contribute to the economic development of the northern states of Nigeria. The company plays an active development finance role in the northern states in particular and in Nigeria as a whole. NNDCs portfolio of investments spans various sectors in addition to hospitality, including real estate, construction, agriculture, oil and gas and telecommunications. NNDC’s shareholders comprise the 19 northern states of Nigeria, represented by the respective Secretaries to the State Governments.
Arewa Hotels (Dev.) Ltd, a wholly-owned subsidiary of NNDC, was established in 1975 to engage in hotel management, investment, development and consultancy as well as manpower development.
However, its main business focus is Hotel Management. Arewa Hotels contribute to the growth of the hospitality industry in Nigeria. Currently, the Company is managing five hotels that are located mainly in the northern region of the country, namely: Sokoto Hotel, Sokoto; Shiroro Hotel, Minna; Lake Chad Hotel, Maiduguri; Aso Motel, Kaduna and Hamdala Hotel, Kaduna.