Capri Africa rides on devalued Naira to increase market footprints
The continued inability of the Naira to regain its momentum against the dollar is increasingly spinning opportunities for foreign realtors to spread their market footprints and grow their assets in the Nigerian property market.
The trend which is becoming more visible in the commercial segment of the market has seen a host of property investors commencing new and speeding up construction of ongoing projects.
One of such investors looking to leverage Naira’s current woes is Capri Africa, a subsidiary of the Capri Investment Group (CIG), which is set to deliver a new office space project in Nigeria.
The Chicago-based real estate investment management firm, agrees that with most African currencies weak, oil and other commodities prices still low, real estate prices and key costs are relatively down, pointing out that the time to invest is now.
The firm, which was recently restructured for expansion, says it is set to make its first investment in the continent consisting of three retail developments in Ghana and Kenya and an office project in Nigeria.
“We believe this is an ideal time, almost a countercyclical time, to enter Africa,” Quintin Primo, CEO, CIG was quoted as saying in a report.
Though the details of the office development in Nigeria remains sketchy, it is believed that the firm will take a cue from other investors by tilting towards the Lagos office market, where developers are eager to provide grade ‘A’ office spaces.
According to Primo, while Africa might seem too risky for many real estate investors at the moment, a closer look at the region reveals that the potential rewards are worth the risk.
For instance, given the high economic growth, rapid urbanisation, and soaring consumer spending, the firm believes that most African markets are sorely lacking in quality commercial and residential real estate stock.
BusinessDay understands that Capri Africa is currently executing investment mandates on behalf of international investors and focusing on seven quickly growing African countries.
Capri Africa, one of the five subsidiaries of CIG is in the process of raising a $250 million to $300 million investment fund for the African market with Ghana, Kenya, Nigeria, Uganda and Tanzania top on the firms ‘investment destinations’.
“Capri Africa will focus on development in the office, retail and housing sector, aiming to capitalise on the growth of the middle class,” Primo says.
ODINAKA MBONU