Just as its prime movers envisioned, the 2,300-acre Appolonia City project near Oyibi, towards Dodowa, has begun to attract leading Ghanaian and international firms to its Business Park, which is in close proximity to residential and recreational facilities in the wider Appolonia project.
Companies moving to the Business Park include some of the best-known global, regional and local brands, and they are investing over US$2 billion in new, state-of-the-art production facilities to drive their long-term growth.
On its part, lead investor and developer, Rendeavour, is investing in state-of-the-art infrastructure by way of roads, water and sewerage, and a dedicated sub-station for uninterrupted electricity supply.
The company says it is creating a satellite city where people can work, live and play in the wider Appolonia City area.
The Business park is 70 acres in size, and according to Holger Adam, Country Head for Rendeavour, deals have been closed for 5 acres already, and that negotiations are underway for another 27 acres.
“It looks very promising. We are confident that by the end of this year we would have a firm commitment to half of our lands,” Holger Adam told the B&FT at the company’s Accra office, located on the 3rd floor of the Grand Oyeeman, Airport Commercial Centre.
“The companies are from different backgrounds, ranging from pharmaceuticals, logistics, automotive and warehousing, among others,” he said.
Rendeavour, Africa’s largest urban land developer, is investing some US$5billion is developing world-class business and light industrial parks in Kenya, Ghana, Nigeria, Zambia and Democratic Republic of Congo.
Appolonia City is a mixed-use and mixed-income urban development in the Greater Accra Metropolitan area. The project is being developed for residential properties, retail and other commercial centres, as well as schools, healthcare and other social infrastructure.
“We are prepared to really partner with companies, and that it is not about us selling lands and then we disappear; we can sell the land, we can build and sell, we can build and lease, and we have strong partners and developers,” Holger Adam said.
“We really are in a situation where we can offer a one-stop shop solution to companies at very fair prices because our financing is not Ghanaian. We don’t have to deal with immense interest rates, but we can take advantage of the international interest rates that are so much lower. So we are in a very good position to create favourable offers for Ghanaian companies.”
The company recently broke ground for the Business Park sub-project, which event was attended by its Founder and CEO, Stephen Jennings, the Chief and elders of the Appolonia community, government agencies and the business community.
Stephen Jennings indicated that the Business Park’s high quality infrastructure and secure land title create an ideal environment for companies looking to expand their businesses in Ghana and West Africa.
“Furthermore, the neighbouring residential areas of Appolonia allow employees to live nearby their workplace, while enjoying amenities such as parks, schools, healthcare and shopping,” he said.
Stephen Jennings added that a large-scale, strategic approach is essential to meet Africa’s growing and ambitious urban population and modernising industrialists, as well as new companies entering African markets for the first time.
To sidestep the unpredictable power situation in Ghana, Rendeavour has already built a dedicated sub-station at the site, which will ensure that the power losses that happen at the distribution end of the value chain, does not affect Appolonia City.
The company is also in discussions with solar energy providers, so that businesses and households in Appolonia City will have solar panels mounted on their rooftops to contribute to power generation.
“So my ambition is that I can offer the companies and the residents in Appolonia 100% power security,” Holger Adam said.
All local and national regulatory approvals have been met and a full land title certificate has been granted, whilst infrastructure, including water, electricity, tarred roads with storm water drains, is being implemented.
Aside the Business Park, residential sales are underway with the option where people can purchase a plot to build their own houses in Nova Ridge or buy an existing house at the Oxford development.
Commercial developments currently include Ghana Home Loans and Total filing station, with Golden Pride Schools constructing the area’s first private school.
Holger Adam believes his company has an advantage over other industry players by way of a very good track record of combining international best practice and local experience.
“All our masterplans, statutory plans, structural plans and local plans are developed between international consultancies and local advisers so that we know what we are proposing is world class but makes sense in the Ghanaian context,” he said.
Another “big advantage” for the company, Holger Adam reckons, is the fact that it works completely with equity, whilst a lot of developers work with little equity, and a lot of third-party funding.
“We, fortunately, are in a position to work completely on equity, which means we are not affected to that extent if the project should be delayed or if there are any currency issues because our funding is still dollar denominated, which gives our partners and our customers a great deal of security.”
Aside the 2,300 acre Appolonia City project, the company is also working on a 2000-acre master planned city project near Takoradi in the Western Region, “with excellent design, with world class infrastructure and development control.”
Commenting on Ghana’s business environment, Holger Adam said the country, for him, is on a “very good track,” although he believes political stability has to be maintained and the erratic power situation and the high cost of power have to be resolved.