Investors, financiers see future of real estate in building empires, urban restructuring

Investors, financiers and sundry stakeholders in the Nigerian real estate market say the future of this burgeoning market, which value is estimated at $360 billion, lies in restructuring of urban cities, building empires and uncompromising visioning in facing the challenges thereof.

The stakeholders explain that building empires of the future is synonymous with building empires of the mind, which, in turn, involves building ideas that drive investment and developments in the market.

Jim Ovia, founder/chairman, Zenith Bank plc, who sees tremendous opportunities in the Nigerian real estate, says these opportunities are driven by ideas, citing the Civic Centre complex, which was a refuse dump before he saw the opportunity and transformed the dump into what the complex is today.

Ovia, who spoke at a one-day Refined Investors Series organised by Fine and Country, a real estate marketing and consultancy firm, noted that the future of this market also depended on restructuring of the urban cities, explaining that there should be a structure in place that should ensure that new developments accommodate housing for low-income earners.

“The present structure in which the master lives and works in the city centre while his driver or office assistant commutes long distance from the outskirt of the city does not give hope for the future of real estate,” he said, advising that along with the high-end developments like Eko Atlantic City should come skyscrapers of 20-40 floors comprising one and two-bedroom apartments for such low class citizens.

Uncompromising vision required for accomplishing iconic projects is critical for the future of this market and, according to Nnenna Obiejesi, executive director, Nestoil Limited, this kind of vision was behind the development of the Nestoil Towers, pointing out however that it was necessary, sometimes, to adjust uncompromising vision in order not to destroy the main vision.

“Founded in 1991, when indigenous participation in oil and gas sector was very limited, Nestoil has grown on our strong vision to deliver excellent products and services,” she said, adding that this had also led to the delivery of real value as exemplified in the quality of the Nestoil Towers.

As a major empire of the future being built in Nigeria, the Eko Atlantic City, an iconic development sitting on 10 million square metres of land reclaimed from the sea located adjacent Victoria, is coming up strong with 12 towers under construction.

Officials of South Energyx Limited, developers and promoters of the city, have assured that the first set of these towers would be completed and ready for use in 2016, adding that the city promises a 3,000 wide Marina, which is a mixed use residential development within the city.

The business district in this city promises Grade A offices, on site residences and hotels and these are besides a two-kilometre long and 60 metres wide Eko Boulevard, all to be serviced self-sustaining infrastructure and 24/7 independent power supply.

Earlier in her welcome address, Udo Maryanne Okonjo, vice chairman/CEO of Fine and Country, had explained that the investors series was aimed to build a definite roadmap for the real estate market through innovative ideas that come from those who open their minds to possibilities.

The forum, she said, was looking for influencers who were to proffer solutions to the challenges in the market, noting that “there are environmental and political constraints to creating empires in Nigeria.”

Refined Investor Series is a real estate thought leadership initiative from Fine and Country in collaboration with The Institute of Real Estate Excellence (IREE) for astute investors, economic influencers, industry leaders, real estate developers and stakeholders who are interested in exploring, understanding and unlocking the opportunities that abound in the Nigerian real estate market.