CategoriesBlog Real Estate Uncategorized

EXPLORING EKO ATLANTIC CITY

Eko Atlantic is arguably Africa’s most ambitious project and most significant real estate opportunity. The Fine & Country WA team had an exciting time exploring Eko Atlantic with Mrs. Ibiene Ogolo, MD, Eko Development Company.

Sitting on 10 million square meters of land, and 2km off the shore of ‘Bar Beach’ as we knew it, sits a jewel Eko Atlantic. Eko Atlantic is bounded by beautiful coastlines on the Western, Eastern and southern borders. The Great Wall of Lagos stands out as a shore protection wall separating Eko Atlantic from the Atlantic ocean. This new horizon city seeks to satisfy the needs for financial, commercial, residential and tourist accommodations in Lagos. The visionary project kicked off in 2002 and has made great strides since then. Eko Atlantic promises to be a self-sufficient city with a state of the art high-tech infrastructure with its own portable water Infrastructure and dedicated Power lines. Eko Atlantic resulted as a solution to protect the shoreline of Victoria Island and also to create a city that would be well-planned as well as developed in accordance with 21st century best practices. Speaking from the perspective of investment, this project is a critical part of the transformation of Lagos, Nigeria, and Africa at large.

 

In actual sense, there is a real dearth of knowledge about the  Eko Atlantic project and its impact on the Environment.  In keeping with one of the objectives of Our Refined Investor Series, (you can learn more about it here), addressing the myths and misconceptions, we delved in deeper to understand Eko Atlantic’s impact on the environment. At the start of the Eko Atlantic project, an Environmental Impact Assessment Report was commissioned and granted to Royal Haskoning, a leading EIA firm in consultation with the Federal Ministry of the Environment and the Nigerian Port Authority (NPA) as well as Lagos State Ministry of the Environment (LASMOE). The Eko Atlantic Shoreline and Reclamation Project seeks to provide approximately 1000 hectares of high-quality land for development within the heart of Lagos, and will indeed offer a long-term solution to the shoreline erosion problems at Victoria Island, Lagos but many people are unaware about the major positives. That’s why one of our objectives is to address the myths and misconceptions surrounding real estate in Nigeria. Fears around the Eko Atlantic are largely unfounded and relies on the assumption that all things Nigerian are fraught with a substandard approach.
To provide a bit of background, and include excerpts from the EIA report, The shoreline of Victoria Island has retreated significantly over the past century, and the main cause for this erosion began with the blocking of coastal sediment transport after the construction of two moles of breakwaters (between 1908 and 1912) at the entrance to the Port of Lagos. Coastal protection activity was frequently commissioned to reduce the erosion threat to Victoria Island, including several nourishment schemes, However, those attempts only temporarily mitigated the erosion and there continued to be intermittent flooding in this coastal area. Many would remember the erosion which culminated in 2005, when the protective beach disappeared with resultant flood damage to the road infrastructure and property along Bar beach.

The Eko Atlantic project adapted a two tonged approach to solve, firstly, the environmental threat of the intrusion of seawater and the damage that would have caused damage to commercial property along that axis, but even more so, providing additional strategically planned urban areas within Lagos, recognizing  increasing population growth and aspirations for greater economic development.

This project is certainly a focal point for investors capitalizing on rich development growth based on massive demand – and a gateway to emerging markets of the continent. Eko Atlantic presents a unique opportunity for the discerning Investor and is unarguably Africa’s boldest and most visionary project.

 

CategoriesBlog Real Estate Uncategorized

Interview with Businessday: Our key objective through RIS is to inspire confidence in real estate market’

Our economy is looking up once again having exited a 13-month crippling recession. But real estate is still lagging even when it is supposed to be a growth driver. How do you explain this?

Real estate is a solid asset class that mirrors the economy. It’s therefor unusual that it will be sluggish during a recession. It’s impossible for real estate to drive growth when the other fundamentals that drive real estate growth are not in place, including factors like monetary to economic policies, mortgages, and lower purchasing power. As much as housing is a necessity, it does not exist in a vacuum. People will take care of basic needs such as food and clothing at the lower end of the market, while at the premium end, corporates and high net worth individuals will attend to restructuring, in most cases downsizing their real estate requirements and budgets to suit a leaner business structure, as part of risk management. As such real estate will lag for a while, even as the economy recovers slowly. There are obviously more liquid and lower value assets that act as interim safe houses for investors including treasury bills and foreign currency hedges. Long-term, however, real estate catches up and overtakes the market, leading sometimes to what’s called a bubble. We are however a long way from any such heady investment climate, as bubbles are caused when there is excess liquidity and over confidence in the economy. 

 

In economic parlance, this sector is described as a laggard, always shifting after the economy must have shifted. How soon or otherwise do you think it will take for the sector to come around? 

As indicated earlier, real estate is best viewed as a long term asset and is not as liquid or easy to invest or dispose of especially in a developing economy. As incredible as the potential of the sector is, there simply has not been as strong an investment from all relevant stakeholders to ensure that it delivers the growth that it is capable of. Despite the NMRC which was established to stimulate private mortgages through the PMis at specific thresholds, is not yet delivering the impact. The Economic Recovery and Growth plan is itself a recovery plan, and as it takes effect, along with improved business confidence, we can expect to see it rub off on the real estate sector. In the meantime, the sector is in for a long haul of readjustments and needing reinvention across all segments but especially at the premium end of residential and offices, if it’s to deliver the growth expected of it. Serious real estate stakeholders are however not expecting to do business as usual, and that’s a good thing. It’s times of difficulty that brings out the best from those willing to adapt. I think better a slow reawakening of the sector with sustainable private investor strategies, regulatory structures, and policies than shallow growth. 

You and your collaborators, particularly BusinessDay, are perfecting plans to take Nigeria to the World early October. What story are you going to tell?

There’s so much that is positive about Nigeria while there’s a lot that still requires correction leaving room for growth and in some cases radical change. Our governance structures are a weak link and one that organizations such as ANAP Foundation and many other Non-Governmental Institutions are focused on building. That’s a good thing when we have private sector leaders who have no desire to play the ostrich just because they are not in full-time public service. They realize that the business climate and economy play a major role in their long term financial and corporate well being, but more importantly for the future generation. Real leaders think generationally. And so through this two-day event, we will we draw attention to and celebrate leadership, both in the private and public sector. We will highlight the fact that there are good leaders in Nigeria, have been and will continue to be. In addition, by drawing attention to various leading corporate brands not just in Real Estate, but home grown institutions, whether it’s Access Bank, Stanbic, First Bank, Seplat, Platform, Famfa Oil, South Energyx, Landmark, Crown Ltd and numerous others, we demonstrate that the story of Nigeria cannot be told without the private sector. It’s the leading brands, the selfless and visionary leaders in various sectors, and the innovative and astute real estate companies that champion change that we want to celebrate. We have to remember that most sectors of the economy interact with real estate and we have a story to tell about the real estate companies setting the pace and blazing trails even within the difficult terrain. The public sector, of course, cannot be left out, because to a large extent they set the temperature and climate of the economy. From security to education, infrastructure, health, housing, monetary policies, there are all relevant, and it’s our intention not to whitewash the reality of our painful pathway to development in all these areas, but we can’t focus only on the difficulties or deficiencies without identifying and celebrating what’s positive, no matter how incremental. The work of the Trade Minister and his team, representing our president, with the ease of doing business campaign and the progress made with investors being able to easier entry, the Lagos state initiatives around title registration, and some of the latest and exciting new cities and projects going on in Nigeria from Enugu to Kano, Abuja, Ogun State, Lagos, Port Harcourt are all areas to be showcased. Our aim is to provide accurate and current insight on the real estate sector and the economy as a whole. We want to help shape the narrative more accurately by sharing the positives as well as the areas of desired growth. No nation can survive if its nationals are not proud of their country. We have a responsibility to deliberately craft platforms that enable us to showcase the best stories of our nation, its people and its path to greatness. That’s why we are kicking off the Refined Investor Series with an Independence Celebration Dinner on Friday, October 6th. We want to celebrate our country, its people, both local and in diaspora and the initiatives, brands, and projects that are contributing to it positively.

Tell us more about this epoch event already scheduled for London where you intend to present the best of Nigerian real estate market to international investors. 

 

The Refined Investor Series (RIS) Event is a 2-day Series. An Exclusive Independence Celebration Dinner themed, I.L.E.A.D: “INDUSTRY LEADERSHIP, ENTREPRENEURSHIP ATTITUDES & DEVELOPMENT” will be hosted on October 6th Friday evening at the prestigious and historic Landmark Hotel, London. We will be celebrating Nigeria’s 57th independence, visionary leadership in projects and financial institutions shaping the Nigerian Real Estate sector while encouraging networking with private wealth clients and leaders in Diaspora. The full day Premium but Free Access Investor Series and exhibition will hold on Saturday, October 7th in the same location. The Exhibition and Seminar will feature an extensive exhibition from all our partners and stakeholders providing direct engagement with diaspora and international investors.

 

The Eko Atlantic City is one of the prime projects you intend to present to investors as Nigeria’s flagship project. How are you going to manage concerns about inclement weather conditions, environmental impact and all?

In actual sense, there is a real dearth of knowledge about the  Eko Atlantic project and its impact on the Environment.  At the start of the Eko Atlantic project, an Environmental Impact Assessment Report was commissioned and granted to Royal Haskoning, a leading EIA firm in consultation with the Federal Ministry of the Environment and the Nigerian Port Authority (NPA) as well as Lagos State Ministry of the Environment (LASMOE). The Eko Atlantic Shoreline and Reclamation Project seeks to provide approximately 1000 hectares of high-quality land for development within the heart of Lagos, and will indeed offer a long-term solution to the shoreline erosion problems at Victoria Island, Lagos but many people are unaware about the major positives. That’s why one of our objectives is to address the myths and misconceptions surrounding real estate in Nigeria. Fears around the Eko Atlantic are largely unfounded and relies on the assumption that all things Nigerian are fraught with a substandard approach. However, that premise is faulty and not supported by both local and international observers of this We have to remember that successive federal and state governments have been involved in certifying this project, including former Governors Tinubu, and Fashola, and now current Governor Ambode. It would take an incredible level of conspiracy to expect that every one of these leaders will turn a blind eye to something so significant. In addition, we have some of the most highly regarded diplomatic missions, and financial institutions already actively working on their new head offices and embassies at the Eko Atlantic. This simply wouldn’t be possible if they didn’t carry out the highest level of assessments themselves. The Refined Investor Series is a great opportunity for the developers of the Eko Atlantic who are being represented at the very highest level by Ronald Chagoury Jnr and his team to engage directly and address the misconceptions. I must say, this is unarguably Africa’s boldest and most visionary project.

 

Some people say that in spite of the situation in the market, there are still pockets of opportunities that investors can latch on and get good returns. Do you share this view? If yes, where?

I’ll restrict my comments to the opportunities for mid level to prime real estate in the residential and office market in a severely contracted market. Fine and Country’s main business is in the upper quartile, and we are very familiar with recessionary markets, considering our launch in 2008, the height of the market crash. We have, however,  always maintained that astute investors understand that every market not only has cycles but that within each cycle, real investors don’t look for last seasons opportunities. Astute investors engage a creative and intelligent process to unlock opportunities irrespective of the market cycle. 

With mid to prime residential, we believe that the top executives, mid level professionals and High Net worth Diaspora investors present a unique opportunity for residential developers. 25% of our clients in the last year has come from Nigerians based overseas. The main reason is the currency advantage that came as a result of the Naira devaluation. This is a largely untapped and confusing market for most Nigerian developers who tend to go after them sporadically without a well articulated and coordinated strategy for not just exposing their projects but creating the right narrative that resonates with their target market. Back home, the mid level entrepreneurial class (long standing business owners with some measure of liquidity and stability looking to downsize and relocate to more convenient locations) or to invest their capital in an inflation proof solid long term real estate, are a segment for developers who are willing to be creative recognising that their needs are unique. Good quality properties, in residential and office segment, is still not to be taken for granted. With quality, however, our view is that developers need to be mindful of balancing quality with ability and pricing, and with purchasing power significantly reduced, value pricing remains important while more efficient spaces and flexible terms have become important. The heady days of $1000 per square meter for prime offices have clearly taken a break, and prices are now at a more sustainable $500-650m2 for prime offices, with quarterly to bi-annual payments now becoming the standard. Although there are still long term leases being signed, those are few and far between, and typically pre-arranged.

Are there still opportunities for ultra luxury residential, the answer is yes if you have staying power, meaning long term funds, patient or legacy capital as I prefer to call it. The true luxury market will never really disappear, as luxury is a reward for extreme hard work and having attained a certain height in life. At this point, people don’t ask mundane questions. Perhaps, the thing to note is that most people who say the luxury market have disappeared, are really referring to the aspirational luxury market or the ‘white market’ of undisclosed source money who may be uncomfortable to invest in a more accountable economy. There’s a difference with real luxury level investors and it’s always been a tiny sliver of the market. In any case, real luxury developers who don’t have patient capital, shouldn’t be in the game. Invest in this segment only if you can afford to outride the market, while of course taking on board market feedback and ensuring you provide real luxury. The low to mid price point residential, office and retail segments remain the highest growth potential, but it’s a game of numbers and a race to slimmer margins that will benefit from higher efficiency in construction and customer service delivery. This market believe it or not is still anyone’s game and not yet dominated by any player. There’s an opportunity for an existing luxury developer to pivot in this direction with economies of scale and dominate specific locations. I could go on, but hopefully, you can see there are still opportunities. 

 

Let me take you back to the London event. The diaspora and international investors you are going to woo to Nigerian market are people used to mortgages as a means of buying property. But here’s is a country where mortgage is virtually non-existent. What argument are you going to present in this respect?

 

A: It’s true that the Nigerian mortgage infrastructure is weak compared to the highly structured mortgage frameworks in the UK, the US, and Europe, however, that in itself presents opportunities for Investors and Developers alike. Most developers offer flexible payment plans, and longer payment periods, which is an attraction for potential investors especially when tied to their cashflow. Indeed many projects in Nigeria have routinely been sold through creatively structured payment plans.

For buyers, even though these real estate investments may be capital intensive at first, there is the potential to save more than the total repayment sum of the mortgages which include the principal amount plus the interest especially in a high-interest environment. Investors also have the opportunity, to avoid the fees associated with mortgages by buying directly with developer flexible financing.

I think in working with the current weaknesses that surround the Mortgage Infrastructure, it is important not to overlook, the downsides, of the high-interest rates, and the overall increased cost influenced by interest rates. Despite these challenges, it’s interesting to note that there are banks who have become creative about Diaspora credit and this is an area that will be discussed extensively at the Refined Investor Series in London. We have one of Nigeria’s leading financial institutions, Access Bank Plc whose dynamic Group Managing Director, Herbert Wigwe is fully committed to engaging diaspora investors using Access Bank UK and its global footprint to tackle this effectively. Indeed the topic of Creative Diaspora Financing is at the fore front of our discussions at the upcoming event. 

 

For too long, the Nigerian mortgage system has remained a fledgling. Where do you think the operators are getting it wrong? What, in your opinion, needs to be done to get it right?

Ultimately, we agree that the best chance of Nigerian real estate playing a real role in economic growth is to have a viable and sustainable mortgage system and we can all agree that this currently doesn’t exit. We have to however, agree that this is not a mortgage operators deficiency, it’s a market deficiency. We don’t completely have the right enabling structures, although the Nigeria Mortgage Refinance Corporation is an attempt towards stabilizing that sector. The real issues are more fundamental and go to our very economic, financial and legal regulatory framework. Transparency and enforcement of title remain a slow trudge. Double digit interest rate regimes nearing 25% due to the lack of liquidity, and long term funds, combined with uninspiring monetary regimes, are all factors. A lack of strong formal employee market means that it’s a challenge for mortgage providers to conduct an objective assessment of many applicants. The list goes on. This issue is one that requires a holistic review, otherwise, we may end up seeing  mortgage companies convert their businesses and become real estate development companies because at least they will not be subject to the stringent regulatory supervision, while they’ll be in a position to be more creative with buyers financing. 

 

Looking back to when you started this event (the Refined Investors Series), what impact do you think it has had on the Nigerian real estate market? What are the prospects in the years ahead?

 

Our key objective and mission through the Refined Investor Series has always been to ‘inspire confidence’ in the Nigerian Real Estate Market through providing a platform for good quality information, insight, and intelligence. As a company, we are on a quest to raise the standards in the real estate sector to international levels so that we become an attractive destination for our own citizens wherever they live, as well as international investors. We believe that limited transparency, access to current and accurate data, are major weaknesses of our economy and certainly the real estate market. Investors, whether local, diaspora or international go where they are confident. Confidence is inspired when people feel they have the right information and an understanding of the market. Our vision is to help investors invest more intelligently and confidently as a result of the Refined Investor Series.

 

The previous editions of Refined Investor Series held in Lagos has had in attendance over 1000 private investors over the past 5 years, with speakers and participation from notable personalities such as Mr. Atedo Peterside, Chairman of ANAP Foundation and formerly of Stanbic IBTC , Mr. Jim Ovia, Chairman of Zenith Bank and Quantum Capital, firms such as Elalan Construction, ANAP Business Jets Limited, British High Commission, Trustbond Mortgage Bank, YF construction, Lakepoint Properties, Urban Shelter Ltd, Famfa Oil Ltd, Total Nigeria Plc, Lagos Business School, Stanbic IBTC Bank, First Bank Private Bank, AM Facilities, Fidelity Bank, Palton Morgan Group, JLL, Energo Buildings , UPDC, LGV Gas.

Seeing top level investors, developers and stakeholders make decisions based on insight gained at the Refined Investor Series, is the proof of its impact.  Our ultimate objective is to shape the Nigerian Real Estate sector positively, so that we can unlock the real wealth that exists within it for many more investors, especially at the mid to prime markets. That’s our focus, and we intend to continue to scale this up using both technology as a way of reaching more investors with the relevant investment information. Next year just before the summer, the Refined Investor Series will debut in the US and Canada, with a Lagos and Abuja edition in February 2018 (The Economic and Real Estate Outlook Edition) in collaboration with our standing partners Business Day, and an ‘Astute Investor Seminar for High Network Clients in April, 2018.

We also have a gender focused Real Estate Series, the Finer Wealth Series, which helps to shape the way female investors tackle real estate and build financial security. This has been on for 3 years now and will formally launch the first female property investment club later this year. For now however, our 100% full on focus is on the London Series, as all roads lead to the Refined Investor Series, UK Diaspora and International edition at the Landmark Hotel, London on October 6th and 7th in a few weeks. 

 

CategoriesBlog Real Estate

GETTING MILLENNIALS ONTO THE PROPERTY LADDER. Secrets every Young Nigerian Should Know.

The Finer Wealth Series, a real estate investment and wealth initiative launched by Fine  and Country in 2015, aims to enlighten, encourage and equip more female investors get onto the property ladder individually and collectively to leverage the power of numbers.

The theme at this year’s edition which held on the 26th of May, 2017 at the Clear Essence California Spa and Wellness Resort was “BUILDING BLOCKS: Understanding the Fundamentals of Real Estate Investments”. It focused on engaging and enlightening younger female investors and their families with practical knowledge on investing in residential property.

We are pleased to feature below an account from one of the female guests, Joy Ehonwa a Lagos based writer and blogger.

REAL ESTATE SECRETS EVERY YOUNG NIGERIAN SHOULD KNOW.

I’m not wealthy yet, not by a long shot. Editors don’t earn much, and writers are paid even less, so when a client I have great respect for invited me to a real estate investment seminar last week, I wondered why.Perhaps she has seen into my future and I’m about to come into money! After all, investing in real estate is for rich, financially free people, isn’t it?

I gladly went, eager to learn something I could use in the not-so-near future.

It turns out I was wrong. Real estate isn’t just for the rich and established! Real estate is for me, a young woman in her 30s trying to build a career and raise a family. Real estate is for you, too. And we can start now.

The event, which held on Friday May 26th, was an introductory seminar, simply encouraging women to be bold enough to “consider a field” as the Proverbs 31 woman did, even if you’re not ready to buy the field just yet.

As I listened to seasoned professionals – Abigail Aneke, former United Bank for Africa (UBA) ED, Subu Giwa-Amu, MD/CEO FBN Mortgage, and the host Udo Okonjo, CEO of Fine & Country – share their real estate investment stories, my mentality underwent a major overhaul. MAJOR.

I cannot possibly share every single thing I learnt at this edition of Fine & Country International’s Finer Wealth Series – it would take 5 articles to do that – but here are just a few priceless nuggets:

1. The Starting Point For Anyone Who Wants To Invest In Real Estate Is Considering It And You Don’t Need Money In Your Pocket To Do That.

Being bold enough to consider it is the foundation.

2. It Is Possible To Invest In Real Estate Without Money.

Udo Okonjo told the story of how a book titled Nothing Down taught her this and changed her outlook, leading her to earn $100,000 on a single investment 18 years ago, without her putting any money down.

3. If You Would Like To Finance Your First Investment, You Can Start Saving For It Right Away.

This meant the most to me as a young person who has never invested in real estate before. Treasury bills were recommended (look this up if you’re not already familiar with it) amongst other low risk investments that can help you multiply your money. I already knew that saving towards a goal makes it easier and more enjoyable, but whereas I thought real estate investment too lofty a goal for me, I no longer think so.

4. Instead Of Thinking Affordability, Think Collaboration.

You don’t have to invest in real estate alone, or even save up for the investment all by yourself. People come together to acquire property all the time! Even if you don’t have any money now, check out this scenario: you and 9 other women save 100k every month. In a year, your group would be able to afford property worth 12 million that none of you can afford individually. And you already know that even if all you do is buy land and sit on it for a few years, it will appreciate and you’ll all be richer for it when you offload and share profits!  This is what Finer Wealth Circles are about.

5. The First Step To Making Money In Real Estate Is Research.

Know your location and ask lots and lots of questions.

6. An Unsuccessful First Venture Need Not Mean Failure.

Udo Okonjo, who is an incredibly successful real estate investor, shared the story of her first investment which was a disaster. According to her, such a thing can only be termed failure when you don’t get up, unpack it, and learn from it. Understand that you will make mistakes, even when you become astute. Learn to forgive yourself.

7. When Buying Real Estate, Control Is Key.

This was the main lesson Udo Okonjo learnt from that first disaster. Invest around where you are, and make sure due de-risking has been done. If you don’t know how, invest through schemes that have done the groundwork of securing the title and dealing with the baales and other such issues that can derail you.

8. When Investing In Property, The Title Is Everything.

This is why Fine & Country settles this first, before proceeding to anything else.

9. When Starting Out In Real Estate, Start Simple.

For instance, it’s always a good idea to house people. People are crying out for affordable accommodation.

10. Know That Real Estate Is A Long-Term Play.

It’s not liquid, and it takes time to extract liquidity from it, so don’t come at it with a “make it quick” attitude.

11. Even If You Can’t Do Anything Else For Starters, Buy Some Land.

Land is a great option because you can’t go wrong once you’ve secured it. Unlike developed property which you need to maintain, land increases in value on its own as time passes. You can even decide to lease it to a farmer, or rent it to a telecommunications company. Udo Okonjo quoted Mark Twain: “Buy land, they’re not making it anymore.”

I came away from the seminar feeling wealthier than I ever have, even though my account balance was exactly the same.

I may not be able to buy land right now, but I’m no longer ignoring real estate broadcast messages and ads.

The possibilities are endless if you simply open your mind to the fact that you, too, can invest in real estate. Once that can happen in your mind, it can happen in your life.

I missed the 2016 edition of the Finer Wealth Series last year (Mrs. Ibukun Awosika Chairman of First Bank shared her real estate investment stories, please cry with me) but I certainly don’t want to miss next year’s.

Neither should you.

CategoriesBlog Real Estate Uncategorized

Investors should recognize that there is always a cost to leaving buildings empty

For reasons ranging from unaffordability to over-supply and unmotivated sellers, many residential buildings, especially at the high end property market,  are vacant. UDO OKONJO, Vice Chair/CEO, Fine and Country West Africa, in this interview with CHUKA UROKO, Property Editor,  highlights the implications of this to both the buildings and the investors. She also speaks on emerging opportunities in the real estate market. Excerpts:
 
We are well into the second quarter of the year. Looking back to the end of last year to now, tell us about the state of the real estate market?
In the upper tier of the residential market which is our point of operation including Ikoyi, Victoria Island, the Oniru axis and, to an extent, Lekki, if you segment those areas, you see that in Ikoyi, for instance, 40-50 percent of the high rise buildings appear to be vacant. There is a very high vacancy rate in this area.
Some of the buildings that appear to be 100 percent empty are generally old buildings which appear to be completely abandoned. The question to ask here is who owns those buildings and why are they abandoned? I think that some of those buildings have the challenges of the tension between the federal government title and the Lagos State regularization.
We have, therefore, to recognize that lack of enabling environment is playing a key role in business people’s inability to create opportunities for people to own homes. In spite of the state of the market, especially at the high end, people still need quality properties that are well priced.
I continue to maintain that there is still market for good location, good quality and good pricing for properties. Old or new, if a property is over-priced because the owner is not interested in what the market is saying in terms of pricing, maybe because he is using it as a means of storing wealth, then for us at Fine and Country, that is not our market.
This is why we advise before we sell. Our strategy is to offer advisory service from the first stage. We prefer to start to give advice first because that enables us to determine the objective of our client. If the client is one that is not interested in what the market demands and requires, then such a client is not for us. We call clients like that unmotivated sellers and we advise buyers to avoid such sellers. These are also part of the reasons you see a lot of empty buildings in that segment of the market.
Investors should recognize that there is always cost to leaving buildings empty. Such cost comes in terms of maintenance, depreciation, decay, etc. It is always good to have people in a building.  Any serious investor recognizes that markets come in cycles and so make all the adjustments they want to make and when they do,  they bid their time and wait for the cycle to return.
For us, what is fundamental is how you acquire a property and why you are acquiring it because that will determine what you are going to do when things go wrong. If you are in for a long term which is what real estate investment is all about, the fact that there is a downturn should not make anybody feel that the world is about to end.
Given the state of the economy, do you still see people who are looking for houses at the high end market?
There are still clients looking for properties but the properties here are over-priced, but those that are adjusting to the market are getting results while those that are not remain where they are and this is happening in both rental and sales market.
We are now highly involved in creating market opportunities. These are real estate solutions and developments that speak directly to the market. This gives investors clear view and understanding of the kind of properties people want to buy and where they want them to be. It is no longer time for lavishness or supper luxury. At any point—whether it is upturn or downturn, the super luxury segment of the market is always a thin one because you don’t have many people playing there as buyers or sellers.
It is a tiny specialized market that is not for everybody. Our advice in the residential segment of the market remain the same: create products that people want; don’t over price the product; find a creative way of delivering convenience and luxury without breaking the bank because if you break the bank, you won’t get a return because people are not in a position to pay. Good quality remains a willing proposition any day but you need to find a way of delivering that quality at a sensible price. This is not rocket science but unfortunately a lot people don’t want to acquire it.
Even when the market was very dull last year, the low-middle market still upbeat with reasonable demand. What has changed in this segment of the market?
There are still first time buyers here including professionals, young families, returning professionals etc. Some of them are not necessarily first home buyers, but people who are investing in order to get rental income in what could  be called buy-to-let investment. In many countries, a lot of professionals create wealth through buying real estate which they rent out to tenants. But the buy-to-let market in this country is not going to flourish because we don’t have a viable and proper mortgage system that can offer single digit interest rate. At double digit interest rate, taking a mortgage does not make sense.
The winning proposition is for the developer to work with younger buyers and their cash flow. He has to structure his development to match that cash flow. This proposition is already catching on because there are a few developers that are already doing it. It is very competitive but there are opportunities there. Efficiency is key. The developer has to be mindful of how seeks building materials, how he develops and sources capital. The development has to be standard, otherwise there will problems.
Businesses have not fared well in the last 12-18 months because recession which has reduced uptake in retail and office space. Looking at the commercial market generally, what is the story?
Grade A office space is still a very small market. Most of the people who play in that space are institutional investors and ultra-high net-worth investors. These people generally have long term horizon because they are astute investors and so they know that the market is in a cycle which will not last for ever. Most of these investors are ready to adjust because they are astute. They recognize that the market is what it is and so they become more flexible and that is what they should be if they want their property to be let. They give out concessions and vary their terms of payment.
Some are, however, still constrained by virtue of their vision even though they try to be flexible. Their vision is not always their financial. They are always bent on attracting the sort of tenants that will add value to their property. So, the adjustment they make is only for the right kind of clients but for other people they will remain rigid.  There is however some sense in all of this because real investors don’t just adjust their vision because the market is down.
Where we see great opportunities emerging is the B-Grade and even below office space. If this Grade is within the range of $60 to $65 per square metre and above, there is still market for below $500 per square metres and this market is largely untapped and is now being filled by informal offices. But developers that build good quality, well finished and well priced, say within $250  to $300 per square metres, will find ready market.
There is a new wave in office space development that encourages small units of office space. What is driving that development and what opportunities are there for investors?
I think there is quite a number of emerging and interesting opportunities that are being driven by younger, more innovative investors and professionals who are riding on the wave of digital technology. Lots of companies don’t need as much space as they used to have. People are now renting smaller work spaces and converting their spaces into smaller units so that emerging entrepreneurs can come and take up those units. There is also big opportunity in that space created by informal investors. If there is a way investors can formalize and scale up that, there is an opportunity there.
Lekki, for instance, is becoming one big retail hub because people are renting houses and converting them into shops. There is a bit of a challenge here because this is a bit untidy and informal. I foresee Lekki becoming a bit like Victoria Island and most of the people living there now will, in future, start looking for residential enclaves or havens where there is sanity, order, orgainsed systems such as power, security, etc. These havens will never be  like government areas such as Lekki where anything goes.
The emerging residential havens like Orange Island, Imperial City, Gracefield Island, Mayegun Beach Resort etc, will begin to do better because people will come to Lekki to do business but will retire to those communities where life is organised. 
We at Fine and Country are very bold and bullish about promoting those enclaves because they are the future of residential development where you have virtually everything including schools, lifestyle, hospitals, retail shops, worship and recreational places, etc.
 
Since many people, especially young families and professionals, are no longer looking for large-size houses, where exactly do opportunities exist the most for investors?
We feel that opportunity now exist in smaller residential units because the young professionals we are talking about are no longer looking for 4 or 5-bedroom apartments because they can’t afford them nor do they even need them. What they need is one-bed and two-bedroom for those that are planning of getting married. These days, room-sizes are getting smaller because of the cost of materials such that where we used to get three-bedroom of 250 square metres, we now have between 250 and 300 square metres. It all now depends on design which makes such rooms efficient and functional.
There is now a good number of developments going on in places like Lekki where you get studio, one-bedroom and two-bedroom apartments targeted at young professionals and families. There was a project we did of recent that comprised just studios and one-bedroom and they sold out. Similar developments are now coming up in Victoria Island and Oniru axis.
We think there are opportunities for similar developments in Ikoyi which is a highbrow area. Families are downsizing and there are young families looking up to their parents to help them to buy properties in good locations such as Ikoyi where they have grown up. Currently however, these smaller units are being built in the outskirta of town but there is an opportunity for them in the city centre and also in the highbrow areas.
CategoriesBlog Real Estate Uncategorized

Taking Nigeria to the World debuts in Fine & Country’s Refined Magazine

The Refined Magazine is out!

The Fine and Country West Africa signature real estate magazine now available for download, features exciting real estate intelligence with a recap of key events in the past months. This Refined edition is focused on ‘’Taking Nigeria to the World’’ by spotlighting the megacity Lagos. Lagos will be 50 in May and we are convinced the Lagos Success Story must be taken beyond the shores of Nigeria.

Having earned its place as one of the most important cities in Africa, Lagos mirrors the challenges and the growth dynamics of African cities from a comparatively positive standpoint. The dynamics and challenges range from managing mega slums alongside mega city, Lagos being the first choice destination for the Fortune 500, Lagos holding its place as one of the 100 Most Resilient Cities in the world and of course, the future of Lagos were all painstaking analysed in the Refined Magazine editorial.

We at Fine and Country are happy to be a part of the Lagos Success Story hence, the Refined Investors Series holding in May, in the United Kingdom, is targeted at bringing Nigerians in the diaspora to come invest in Nigerian real estate in general, and Lagos real estate in particular. The need to invest now is critical going by the prevailing matrices and their interpretations as intelligent real estate indices. These indices are reflected in the choice of properties listed in the Refined Magazine.

Prominent amongst the featured properties is the Oakwood Residences on Cooper Road Ikoyi. These luxury residences comprise contemporary three bedroom and 5 bedroom apartments with a panoramic view of the lush Ikoyi skylines. The build quality and finish are the top of pack and the price point is relatively going 20% lower than market value. The window of opportunity of buying at the current price closes within a couple of days.

Call Ifueko on 08096000024 to buy an apartment!

Download a copy of the Refined Magazine here.

CategoriesBlog Real Estate Uncategorized

THE OAKWOOD RESIDENCES IKOYI, OFFERS THE LAST TWO APARTMENTS

http://fineandcountry.ng/properties/oakwood-residences/

Real estate typically stimulates fond emotions, and for great Real Estate, the emotions are a lot more profound. We all honestly love great real estate because it delivers value, both aesthetically and functionally. This photograph of Oakwood Residences Ikoyi does not do justice to it when compared to what it is in reality. This is because this property ticks all the right boxes which rarely happens, by the way. Let’s see some of these boxes The Oakwood Residences ticked rightly;

  •  Location
  •  Pricing
  •  Quality build
  •  Flexibility in payment terms
  •  Functionality
  • Aesthetics
  • Creative spacing

Now, top all of these up with the Fine and Country West Africa seal of guaranteed title. One would honestly, be unsure of what else an astute investor would be looking for. This property is great for those looking for the convenience factor, scaling down and moving from congested Lekki axis or mainland or for diaspora Nigerian buyers wanting security in title and peace of mind. This explains why we are sold out mainly to owner occupiers and diaspora investors- with only 2 apartments available.

To initiate your first step to owning a luxurious apartment in the upscale Ikoyi neighbourhood, call;

 

Ifueko on 08096000024 or Bukola on 08096000027

CategoriesBlog Real Estate Uncategorized

Taking Nigeria to the World: Spotlight on Nigeria’s Mega City, Lagos

Fine and Country West Africa

The megacity Lagos, will clock 50 in May, having earned its place as arguably the most important state in the country and the 4th largest economy in Africa, a home for all and a land of opportunities where dreams are made and fulfilled. Being the technology, investment and economic hub of Nigeria, Lagos has taken the mantra, “Centre of Excellence”, to a reasonable level. According to a KPMG report, African’s cities are fast emerging as centres of entrepreneurship, innovation, creativity and invention and Lagos is leading in these areas.

Lagos also recently attained the status of one of the 100 most Resilient Cities in the world. This means Lagos is more resilient to the physical, social, and economic challenges that are a growing part of the 21st century. Lagos endures and survives in spite of the challenges that come with urbanization and migration.

Governor Ambode, the state governor, had mentioned at the 14th Prof. Pat Utomi led, Annual Lecture and Symposium organised by the Centre for Value in Leadership, that 85 new people migrate to Lagos every hour. As one of the fastest growing cities in Africa and one of the leading destinations for Fortune 500 companies, with over 14 of them already in Lagos, there is no doubt that urbanisation is a key driver for economic development and prosperity.

THE CHALLENGE OF GROWTH. MEGA CITY VERSUS MEGA SLUM?

There are however challenges and opportunities in the rapid growth. These challenges range from inclusive growth – Urban cities have a responsibility to focus on realising the potential of these cities as inclusive and resilient centres of economic growth and job creation with a critical but often ignored question: “Who are we building the cities for?  Secondly, the infrastructure deficit is also an obvious area that presents an opportunity for forward thinking governments to partner with the private sector to deliver world class infrastructure ranging from transportation, power, sanitation/waste management to softer infrastructure including health/medical, educational and recreational facilities. Population growth typically outpaces the infrastructure growth which often needs to be addressed against the backdrop of limited or dwindling revenues. Thirdly, informal settlements and unregulated urban growth especially in young cities as is in clear evidence all around Lagos, constitutes a threat for both the settlers and residents.

As highlighted above, these present clear opportunities but also a major challenge to the key stakeholders to be proactive in tackling the current needs while being visionary about building the future.

THE FUTURE MEGA CITY

Lagos recently flagged-off the Ambode-led Massive Infrastructural Plan, as it seeks to adopt models of public-private partnerships to fill infrastructural gaps   . The Lagos City Initiative also signed an MOU with the Dubai Smart City to create the world’s first carbon neutral city- The Lagos Smart City. Other significant projects in the state are the 4thMainland bridge project, Light-up Lagos, the Lekki deep seaport, Lekki axis airport, the Dangote refinery and Lagos’ fast rising software developers’ hub profile. The mass housing scheme, the massive reform in waste and sanitation management system and structured transportation system befitting of a megacity; which explains the drastic establishment of massive lay-bys, rehabilitation of inner-city roads and the construction of flyovers in different parts of the state, are strong indices showing the reinvention taking place in Lagos State.

Lagos is a prime example of a proactive and fast developing megacity. Despite the challenges peculiar to a developing megacity like Lagos, a vast pool of opportunities, however, exist as very low hanging fruit, for the discerning.

TAKING LAGOS TO THE WORLD OF DIASPORA NIGERIANS

Fine and Country West Africa is taking the lead in attracting Nigerians in the diaspora (with an estimated $21-35billion in remittance level at 2016)  to invest in real estate in Lagos. Lagos receives the highest percentage of the remittance made into the Nigerian economy.

In light of this, the forthcoming Refined Investors Series UK, themed ‘’Taking Lagos to the World’’, holding on the 15th and 16th of June, 2017, in London, is billed to provide a platform for showcasing Lagos Real Estate opportunities to foreign investors in general and Nigerians in the diaspora in particular. Stakeholders from all key segments of the value chain will be available, to inform and present, through conferences and exhibition, various offerings to Nigerians in the diaspora.

As Lagos hits the big 50, we hope that the continuing transformational leadership of the state will strengthen its system to help create more transparent building approval processes, and marketable titles to inspire confidence in investors. This is the bedrock of creating sustainable wealth, and the winning strategy to tap the true potential of Lagos and other emerging Nigerian cities.  The future of Nigerian cities may well appear bright if we follow through with sustainable governance, solid institutions and a culture of transformational leadership.

Udo Okonjo, LL.M (Lond)
CEO/Vice Chair Fine and Country W.A.
A member of the Oxford Real Estate Society

CategoriesBlog Real Estate Uncategorized

Taking Nigeria to the World: Spotlight on Nigeria’s Mega City, Lagos

Fine and Country West Africa

The megacity Lagos, will clock 50 in May, having earned its place as arguably the most important state in the country and the 4th largest economy in Africa, a home for all and a land of opportunities where dreams are made and fulfilled. Being the technology, investment and economic hub of Nigeria, Lagos has taken the mantra, “Centre of Excellence”, to a reasonable level. According to a KPMG report, African’s cities are fast emerging as centres of entrepreneurship, innovation, creativity and invention and Lagos is leading in these areas.

Lagos also recently attained the status of one of the 100 most Resilient Cities in the world. This means Lagos is more resilient to the physical, social, and economic challenges that are a growing part of the 21st century. Lagos endures and survives in spite of the challenges that come with urbanization and migration.

Governor Ambode, the state governor, had mentioned at the 14th Prof. Pat Utomi led, Annual Lecture and Symposium organised by the Centre for Value in Leadership, that 85 new people migrate to Lagos every hour. As one of the fastest growing cities in Africa and one of the leading destinations for Fortune 500 companies, with over 14 of them already in Lagos, there is no doubt that urbanisation is a key driver for economic development and prosperity.

THE CHALLENGE OF GROWTH. MEGA CITY VERSUS MEGA SLUM?

There are however challenges and opportunities in the rapid growth. These challenges range from inclusive growth – Urban cities have a responsibility to focus on realising the potential of these cities as inclusive and resilient centres of economic growth and job creation with a critical but often ignored question: “Who are we building the cities for?  Secondly, the infrastructure deficit is also an obvious area that presents an opportunity for forward thinking governments to partner with the private sector to deliver world class infrastructure ranging from transportation, power, sanitation/waste management to softer infrastructure including health/medical, educational and recreational facilities. Population growth typically outpaces the infrastructure growth which often needs to be addressed against the backdrop of limited or dwindling revenues. Thirdly, informal settlements and unregulated urban growth especially in young cities as is in clear evidence all around Lagos, constitutes a threat for both the settlers and residents.

As highlighted above, these present clear opportunities but also a major challenge to the key stakeholders to be proactive in tackling the current needs while being visionary about building the future.

THE FUTURE MEGA CITY

Lagos recently flagged-off the Ambode-led Massive Infrastructural Plan, as it seeks to adopt models of public-private partnerships to fill infrastructural gaps   . The Lagos City Initiative also signed an MOU with the Dubai Smart City to create the world’s first carbon neutral city- The Lagos Smart City. Other significant projects in the state are the 4thMainland bridge project, Light-up Lagos, the Lekki deep seaport, Lekki axis airport, the Dangote refinery and Lagos’ fast rising software developers’ hub profile. The mass housing scheme, the massive reform in waste and sanitation management system and structured transportation system befitting of a megacity; which explains the drastic establishment of massive lay-bys, rehabilitation of inner-city roads and the construction of flyovers in different parts of the state, are strong indices showing the reinvention taking place in Lagos State.

Lagos is a prime example of a proactive and fast developing megacity. Despite the challenges peculiar to a developing megacity like Lagos, a vast pool of opportunities, however, exist as very low hanging fruit, for the discerning.

TAKING LAGOS TO THE WORLD OF DIASPORA NIGERIANS

Fine and Country West Africa is taking the lead in attracting Nigerians in the diaspora (with an estimated $21-35billion in remittance level at 2016)  to invest in real estate in Lagos. Lagos receives the highest percentage of the remittance made into the Nigerian economy.

In light of this, the forthcoming Refined Investors Series UK, themed ‘’Taking Lagos to the World’’, holding on the 15th and 16th of June, 2017, in London, is billed to provide a platform for showcasing Lagos Real Estate opportunities to foreign investors in general and Nigerians in the diaspora in particular. Stakeholders from all key segments of the value chain will be available, to inform and present, through conferences and exhibition, various offerings to Nigerians in the diaspora.

As Lagos hits the big 50, we hope that the continuing transformational leadership of the state will strengthen its system to help create more transparent building approval processes, and marketable titles to inspire confidence in investors. This is the bedrock of creating sustainable wealth, and the winning strategy to tap the true potential of Lagos and other emerging Nigerian cities.  The future of Nigerian cities may well appear bright if we follow through with sustainable governance, solid institutions and a culture of transformational leadership.

Udo Okonjo, LL.M (Lond)
CEO/Vice Chair Fine and Country W.A.
A member of the Oxford Real Estate Society

CategoriesBlog Real Estate Uncategorized

Is Lagos Ready For Fortune 500 Companies?

Nestoil Towers

 

 

Lagos has earned itself a position among the top destination for Fortune 500 companies seeking expansion in the Middle East and African (MEA) territories. Overall, there was a 17% increase in the number of companies in MEA in 2016 compared to 2015, with Johannesburg and Lagos being the leading destinations for Africa and West Africa respectively. This means Fortune 500 companies are actively seeking new markets to expand into.

 

A new report released by Infomineo, a global business research company specialising in Africa and the Middle East, indicates that the region has become increasingly important for the majority of global Fortune 500 countries. Typically Fortune 500 companies lease or buy Grade A office spaces.

Nestoil Towers

 

The key features of Grade A office spaces include the following:

1. A landmark status or central business location

2. Good accessibility and adequate car parking

3. A modern BMS(Building Management System)to control access and security, fire, life safety and other building services

4. Provision of multiple power sources to ensure a constant power supply in the event of a local power grid failure

5. Provision of a raised floor with a minimum clear service zone of 90mm

6. Environmental Standards (AD) to achieve one of LEED Gold Standard BREEAM(Building Research Establishment Environmental Assessment Method) Standard, with a Very Good point mark.

7. The quality of build and minimum structural loading floor capacities for each office floor level with an area allocated for high loading levels on each floor.

Nest oil | Fine and Country

 

The future prospects for Grade A spaces appear bright, and a number of office buildings including the international award-winning Nestoil Tower, standing tall in this regard. This Grade A building is a one-of-a-kind mixed-use development, strategically located at the intersection of two major business roads – Akin Adesola Street and Saka Tinubu Street- in Victoria Island Lagos, with a panoramic view of the Eko Atlantic City and the Atlantic Ocean. The development is targeted at dynamic businesses, multi-national industries, financial institutions that require top brand positioning and desire to be at the very heart of their target market. Sitting on a land size of 3900sqm on 15 floors, the Nestoil Tower is an iconic structure with 9904 leasable commercial spaces and 23 residential apartments to provide a flexible accommodation to occupiers.

With the likes of Nest Oil Towers, Heritage Offices, The Wings, Nipost Tower, Temple Towers and a handful of both grade A and B offices coming into the market, we can say that Lagos is getting ready for the influx of Fortune 500 companies notwithstanding the current challenging times in the office market.

Looking to develop, list or lease a Grade A office space in Lagos? Talk to us

Call David Mbah 08096000021

 

CategoriesBlog Real Estate Uncategorized

The Intelligent Investor: Getting Detailed and Organized

 

Real estate Investing in Nigeria | Fine & Country 

“For every minute spent organizing, an hour is earned”
-Benjamin Franklin

As an investor, it is pertinent to know,  that you are probably not the only bargain seeker out there looking for great investment opportunities in a slow real estate market. You may have an edge on the sellers as cash is now king, but another buyer could snap up your great deal if you delay the buying process.

It is, therefore, important that once you’ve decided to look for great deals, you should get your down payment ready to move once a transaction is agreed. In the case of financing with a mortgage facility, you will need to have got pre-approved for the loan to prevent undue delays.

Real Estate transactions are better handled when you get a well-informed advisor on your side.  These professionals provide valuable information and let a buyer investor know early on in the process what to look out for and what they can use to their advantage. Researching your advisors is a critical element especially in developing economies like Nigeria. It’s best to get a referral rather than to rely on the internet wherever possible as integrity is still a big issue in our market.

CategoriesBlog Real Estate Uncategorized

THE LAGOS BUSINESS SCHOOL CEO’S ROUNDTABLE ON SUSTAINABILITY

At the baseline of Sustainability lies the Instinct to Survive; this was the lead conversation at the recently organized CEO’s roundtable discuss on Sustainability. Adversity triggers innovation and this was also a position taken by all the CEOs present. It was also gathered at the event that the greatest threat of all is Poverty of the mind. ”Nigeria alongside her businesses are desperately in need of Transformational Leadership because of the present situation we are in economically” this was the central focus of the keynote presented by Tonye Cole, Co-Founder Sahara Group.

THE LAGOS BUSINESS SCHOOL CEO'S ROUNDTABLE ON SUSTAINABILITY

He went on to illustrate that businesses that would succeed in this era are businesses that are have developed winning survival strategies and with a penchant for dynamism and Innovation.

These forward-looking businesses have certain characteristic traits in common and they are:

  • Ability to foresee the future by reading the signs we see today
  • Being consistently and deliberately relevant in your line of business
  • Advocacy, adding value and Engaging with relevant stakeholders
  • Knowing when to change strategy/tactics
  • Opening up new frontiers and Markets
  • Build Lasting Relationships – One key pillar to sustainability is lasting relationships, Relationships outlive Governments
  • Grow your business while others are afraid
  • Collaborate

During the plenary session on Investing in Talents for Sustainable and Competitive Advantage, Udo Okonjo, CEO Fine & Country WA gave an insight into how leaders of 21st-century businesses can leverage on a healthy, happy and properly engaged employee. She also said that CEO’s need to constantly think about going back into the Nigerian society and help build the fallen structures.

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Speaking from her experience as a 21st-century business leader, she maintained that the companies that have a strong sense of purpose will retain people with a strong sense of purpose and the people with strong personal vision, tend to last longer in the company.

Mrs. Okonjo rounded off her session by touching point on the importance of creativity and its impact on the collective growth for both the employee and the employer. She said that ”Creativity is very important when you give employees an opportunity to contribute to the vision of the company so as to grow it; and the kind of people who will thrive in that environment are people who are Dynamic, Innovative and Creative”.

 

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The Intelligent Investor

The intelligent investor | Fine and Country

                                                    “If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper questions to ask”
                                                                                                                                                             – Albert Einstein
                                                                                                                                   ASKING THE RIGHT QUESTION 
Real Estate Buyers (Investors) more often than not have the lead in a recessive and challenging market but this doesn’t mean they should walk into a transaction inadvertently.

Prospective buyers are expected to search the internet for listings, inquire with a renowned property manager or agent and also check the daily property newsprints to gain insight on a particular location, property type and average asking prices.

www.fineandcountry.ng and Refined Magazine are good sources and many others. As a buyer, one of the objectives when asking questions before investing in Real Estate is to get to know the price range for the location you want to invest; in order to ascertain what is excessive and what is considered low. This investigation will help you make a reasonable bid and also provide the first perception that there is bargaining room on a particular property.
Other questions to ask should border on title, developer history, documentation fees, year of construction, facility management, service charges, transfer of ownership etc.

Subsequently, we will be discussing other important steps to take when considering an investment in Real Estate. These steps will centre on the following touchpoints:

  • Getting detailed and organized
  • Buy from Motivated sellers
  • The Art of negotiating Well & Throughout the Transaction Phase
  • Titling: Getting it right

 

 

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The Confidence Factor vs Diaspora market Investment

Confidence in the economy and its markets is a critical driver of economic, financial fluctuations and of the entire business sectors. When confidence increases, investors and consumers want to spend more on goods, durables and invest at prevailing prices. When confidence decreases, consumer spendings and investment risk-taking show a declining trend.

Attracting foreign Investments (especially from Nigerians in the Diaspora) is very key if the FG Economic Recovery and Growth Plan (ERGP) which unveils a roadmap for Nigeria’s economic recovery, growth, and sustainable development, is truly going to result in positive outcomes; and this begins when the confidence level and news about the future is good.

Recently, Dr. Okechukwu Enelemah, The Minister of Industry, Trade & Investment and Prof. Pat Utomi made a key reference to the Confidence Factor and how a positive Confidence Factor Index will create an enabling business environment and positively impact the of ease and transparency on attracting investment into the country.

Furthermore, the 800% over subscription of the Euro bond and the recently announced changes in Nigeria’s Immigration policy, Real Estate Developers can draw up 3 key insights:

1. Attractive Returns: High-Value Pricing attracts all investors in a down market. The Eurobond was arguably oversubscribed due to its aggressive pricing. Where there’s low investor confidence, the reward has to be made more attractive.
2. Ease of Doing Business: Lowering the acquisition/investment barrier through Flexible Pricing and lower deposits to attract commitment and quicker decisions.
3. Transaction Integrity and the Confidence Factor: Real estate being high-cost transaction benefits from ensuring transaction integrity. Historical Track record and Excellent Documentation processing, answer questions upfront and clearly without hidden costs and ambiguity.

Investing in Nigeria /Fine and Country West Africa

The Confidence Factor is a big issue in both attracting investors to the Nigerian economy and also attracting real estate buyers especially those not resident in Nigeria to the market. Raising Nigeria’s Confidence Factor Index is an important leading indicator for investors given its ability to predict the gross domestic product (“GDP”) growth performance of an economy and also the effectiveness of the monetary policy in combatting low unemployment and inflation.

Going foward, we expect that the real estate sector will outperform other investment classes as the Confidence Level of foreign investors increase especially the Nigerians in the Diaspora. According to a report by Global Knowledge Partnership on Migration and Development, remittances into Nigeria totaled $20.8 billion in 2015 and grew by 40.57% to $35 billion in December 2016.

This is a leading Indicator that fosters the possibility of a broad economic turnaround, including resumed growth in real estate contribution to GDP as a result of increase patronage from diaspora first-time residential real estate buyers. Other sectors of the real estate value chain especially the Retail and Premium Real Estate space, will experience a positive impact on the revenues and transactions closed over time are highly correlated with the economic performance and consumer spending patterns.

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Top Properties for Sale in Lagos

We’ve Shortlisted the top properties in Lagos that are perfect for investors and first-time buyers. In no particular order:

Oakwood Resdences Ikoyi
Oakwood Residences, Ikoyi

OAKWOOD RESIDENCE, IKOYI

The newly constructed Oakwood Residences is located on Cooper road in Ikoyi, Lagos and provides contemporary 4 Bedroom apartments and 5 bedroom penthouses with excellent build quality and finish. These homes will come with facilities such as Fitness Centre, Swimming pool, service apartment, study,  Spa and Standby generating set for uninterrupted power supply.Read more

Oakwood Residences
Oakwood Residences

 

Eden Heights
Eden Heights

EDEN HEIGHTS, VICTORIA ISLAND

Located in the heart of Victoria Island, Lagos with close proximity to leading schools, financial hubs, Eden Heights is an off-plan property which has on offer beautifully designed, modern 1, 2, 3, 4 bedroom apartments and 5 bedroom penthouses. Each apartment comprises well-appointed en-suite bedrooms, floor to ceiling windows, modern fitted kitchens, spectacular views and access to the Swimming Pool, Spa, and Gym. Eden Heights is expected to be completed by Q4, 2016. Flexible payment options are available. Read more

Eden Heights
Eden Heights

 

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Abandoned Government Monument; What is the way forward?

 

Old Federal Secretariat Complex
Old Federal Secretariat Complex Ikoyi

The old federal secretariat, Ikoyi was before its abandonment a powerhouse for deliberation and implementation of issues that concerned the development of the country. It was an administrative complex built by the Yakubu Gowon led administration to cater for the administrative need of the country. At the point when the capital was moved to Abuja, it was left to rot. Presently it houses rodents, reptiles, and hoodlums who take advantage of the derelict and overgrown compound to propagate unlawful activities.

Abandoned building and transforamtions
The table above describes the abandoned buildings around the world and how it has been transformed.

 

St Pancras Renaissance Hotel
St Pancras Renaissance Hotel
Liverpool's grade ll listed gladstone conversatory
Liverpool’s grade ll listed gladstone conversatory

 

It would be an advantage to Nigerians if the custodians of the old federal secretariat look inwards and proffer creative ways the buildings can be transformed either for commercial or residential purposes.
It can be used for mixed use developments or work live and play. It can also be used as a co-work space, multi-studio apartments. Alternatively, it can be used as Retail spaces in order to reduce the 2.7 million space deficit across the nation.

The big question is… Would you buy a serviced apartment in here? Lease an office within it? Rent short let boutique residences or hotel? These and many more questions need further deliberations.

Recently we started conversations around Pockets of Opportunities; we know there enormous opportunities that can be explored from the transformation of abandoned monumental properties.

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POCKETS OF REAL ESTATE OPPORTUNITIES IN 2017 and beyond

Pockets of Opporunities by Udo Okonjo
A Cross section of guest at the Economic and Real Estate Outlook 2017.

Udo Okonjo, CEO Fine and Country WA, recently described the real estate sector as a mirror of the economy which directly reflects the economic status of the nation, however she noted there are pockets of opportunities for those who are willing to be creative and deal with real owner-occupier and investors demand rather than opportunistic oil leaks/corruption fuelled market . Below are some of the excerpts from her review titled: Pockets of Opportunities at the just concluded Real Estate Leaders Breakfast meeting held at the Radisson Hotel where she sought to provide some guidance to investors and stakeholders.

 

LOCATION.Real estate as we know it is changing. The concept of location needs a re-look. Prime locations such as Ikoyi, Banana Island, Victoria Island, and environs will remain attractive, however, we need a redefinition of the old real estate maxim. Location. Location. Location should be looked at in a developing economy in light of emerging locations especially new cities/locations which offer good infrastructure, or locations that have become more accessible as connectivity increases and redefines the value of certain locations.

It is important to note that there are still pockets of opportunities within prime locations at the very high end for investors who are interested and financially capable of building “legacy  or trophy projects.” However, for the rest of the market, residential now needs to be ‘’re-designed to fit the present day reality’’. One of the trends is certainly towards apartment style versus large villa style housing. Market intelligence is increasingly pointing towards good value and convenience, which does not mean the same thing as low quality housing. Oakwood Residences on Cooper Road typifies this model of market intelligence- contemporary good value and good quality apartments in the prime Ikoyi suburb, which were offered at below N150M at launch, now 90% subscribed and nearing completion.

Oakwood Resdences Ikoyi
Oakwood Residences, Ikoyi

MILLENNIAL HOUSING.  An important trend, which needs to be explored further as  Millennials begin to come into the housing market, with more functional requirements in terms of unit sizes and facilities. This market is important for residential developers with opportunities to target first-time homeowners, buy to let investors and parents of the “boomerang generation”  -those caught between staying at home out of financial convenience and fending for themselves. Their lifestyles are different and needs to be studied to adapt the right properties.

DIASPORA Investors. Diaspora investors are a huge source of foreign direct investments which can no longer be ignored. This is a market segment with unique requirements and for whom the real gap is a confidence crisis. Any attempt to tap into this market will require this confidence gap to be filled with both on a country economic and market level. The source of the properties, the standards and the process of engaging those in diaspora are critical factors.

 

LIFESTYLE GATED ESTATES. These are an emerging opportunity in residential and are specially favoured by the younger professionals and middle class families who value a sense of security, convenience, and community. The diaspora market is also keen on lifestyle communities as they largely mirror their lifestyle experiences overseas.

Other low hanging opportunities include Neighbourhood retail hubs, noting that Ikoyi, still a largely residential location, lacks a proper shopping centre, with Falomo Shopping Centre still in limbo. Hostel Accommodation for top universities, including the Pan Atlantic University/Lagos Business School and across the country were reviewed. The Federal Secretariat and the multiple abandoned properties in prime Ikoyi and environs was noted as opportunities to be reviewed creatively against the backdrop of the emerging entrepreneurial class of owner occupiers, who have real demand versus the opportunistic investors whose

 

The keynote speaker, Professor Pat Utomi, session focused on the four growth drivers’ framework; policy choice, institutions, human capital, and entrepreneurship.

 

A Real Estate Outlook Report for 2017 is also available at Fine and Country to investors and anyone looking to consider an investment.

For further enquiries, please contact victor.nkwocha@fineandcountryng.comor call 08096000042.

CategoriesUncategorized

The Economic and Real Estate Outlook 2017

economic and real outlook 2017
A cross section of guest at the Economic and Real Estate Outlook 2017.

 

 

The Economic and Real Estate Outlook 2017 which held yesterday at the Radisson Blu Hotel, Victoria Island, saw a great turnout of Real Estate leaders. We are grateful and thankful to everyone who participated. The keynote speaker Prof Pat Utomi delivered an excellent lecture centered around the lessons from 2016 and all the policies to watch out for in 2017.

The Economic and Real estate outlook 2017
Udo Okonjo, CEO Fine and Country West Africa

The prospects for 2017 is centered around “Choice” and response to growth drivers factors. Choice; It is all about the choices made, poor policy choices lead to poor growth of the economy. African leaders are making the wrong policy choices and as a result, Africa is not growing- Prof Pat Utomi.
Culture(Leadership), human capital, institutions, entrepreneurship and policy choices make up the growth driver framework.

The host speaker Udo Okonjo, CEO Fine and Country, also shared some valuable insights for 2017. Below are her views;
Housing is one of the most basic human need, corruption is arguably fuelled by lack of housing. “With Real Estate sector in 2017, l see some bright lights, there are pockets of opportunities
but with pockets of opportunities you have to be creative, innovative and note the real demand” -Udo Okonjo.

Some of the other pockets of opportunities Mrs. Okonjo explored focused on the “The Real Market” which is the middle market, millennial market( housing), emerging market, migrant market and community retail. She noted the increase in growth and increase in demand for residential and commercial properties.

The Economic and Real Estate Outlook 2017
Panelist at the Economic and Real Estate Outlook 2017

A comprehensive report generated from this breakfast session and Fine and Country’s Market Projection & Review will be available on demand. Do contact Victor on 08096000042 or email victor.nkwocha@fineandcountryng.com

 

 

CategoriesUncategorized

WHY NIGERIA?

Eurobond Nigeria

 

“The best luck of all is the luck you make for yourself”
…Douglas MacArthur

Contrary to popular opinion, the $1 billion Eurobond offering has demonstrated that the international investment community has a strong market appetite for Nigeria.The bond was oversubscribed 7.87%, in spite of the volatility in emerging and frontier markets. This shows a commendable degree of healthy confidence by the international investment community in Nigeria’s economy.
If the international investment community has seen beyond the recession and perceived policy challenges, perhaps there are pockets of opportunities tucked in the economy which might only be obvious to the discerning investor. The astute investor who deliberately observes and digs deep stands the chance of “getting lucky”.
The first and major lesson learned from the $1 billion Eurobond oversubscription is that this market still has the capacity to deliver with the right yields.
This is a great time for smart Nigerians in the diaspora to take advantage of the favourable forex disparity and make sound investment decisions in favour of Nigeria, particularly in the real estate sector.
Most real estate offerings do not currently reflect the weight of the prevailing inflation in the economy, and therein lies the opportunity. Astute investors should take full advantage of this low pricing structure to ambitiously and aggressively invest in Nigerian Real estate especially in Lagos where the bold vision of the successive leaders have become a backdrop for economic stability and future growth.
Fine and Country is championing carefully selected pockets of real estate opportunities in the current ‘mixed signal’ market. These opportunities are parallel realities- recession on the one hand and the opportunities on the other hand. These realities are no alternative truths but palpable reality.

Get in touch

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+234 809 600 0027
+234 809 600 0017

10, Onisiwo street, off Lateef Jakande, Ikoyi, Lagos.

email

admin@fineandcountry.ng

about us

Fine & Country is a global real estate brand, specializing in providing a premium service through exceptional marketing and professionalism in the upper quartile of the market.

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