K.Parkwood sees opportunity in office space market, builds The Pimlico
The growth in the Nigerian economy has, increasingly, continued to swell investor-confidence in the country’s real estate market as foreign and local interests enter the market with investments mainly in its commercial segment where they see opportunity.
K.Parkwood Property Services is one of the latest local investors in the market with its focus on commercial development which it finds more dynamic more dynamic than the residential.
The company is interested in office space, retail and industrial property development and is, right now, involved in an office space project where, according to its Chief Executive Officer, Omorinsola Ipaye, “we see demand for conventional office space very encouraging”.
According to her, outside the high-brow neighbourhoods of Ikoyi and Victoria Island, where she notes that out of every 10 buildings, one is being developed into 10-15 floors for office space, demand is also very strong for mid-end office space in places like Yaba.
Ipaye who spoke in an interview with BusinessDay, observed that Yaba, a middle income settlement, is today a business hub for the insurance industry, noting that many insurance companies are setting up offices in that neighbourhood which is where they have their project called The Pimlico.
The project, sitting on 1,687 square metres of land, is a Grade ‘B’ iconic and innovative office building strategically positioned along Herbert Macaulay Way, Yaba, promising all the services and facilities that one can get in a Grade A office building. It has six- storey structure—four levels of open plan spaces, one level of car parking and a basement level underground parking. Each floor would consist of 240 square metres of lettable open plan spaces.
“This is a product that will be internationally accepted and will attract both indigenous and global tenants; our focus is on the insurance sector and we are speaking to foreign interests in this sector who are interested in Nigerian population and its business environment”, the CEO disclosed.
She said that Yaba currently boasts of few iconic structures, adding however that ‘The Pimlico’ would pride itself as an ultra-modern edifice beautifying the Yaba skyline. “Yaba is positioning itself as home to the major insurance and pension fund institutions including Crusader Insurance, Guinea Insurance, Mansard Insurance, Law Union & Rock, STACO Insurance, Custodian and Allied Insurance”, she said.
In spite of increased activities in the office space segment which anticipates over 2,000 square metres of lettable space in the market in the next 18-24 months, Ipaye has no fear of over-supply, hinging her confidence in the new investments she sees coming into the country and also in Nigerians who are developing capacity to be able to promote productivity organically.
“There might be supply of office spaces but I don’t envisage over-supply. There is a conscious effort by government to increase productivity and commerce. We have seen influx of direct foreign investment and the Federal Government is opening new vistas as could be seen in agriculture sector. Government is also diversifying the economy in various ways and I think all these will translate into demand for office spaces and working environment”, he enthused.
Ipaye hopes that the project, which is about three minutes drive from the Adekunle access to Third Mainland Bridge and easily accessible to almost all Lagos metropolis, has a 24-month construction life cycle and would be due for delivery in June 2016.
By: Chuka Uroko