Optimising returns on real estate investment through innovative products
Like most other asset classes, real estate is a complex venture, and investment in it is not only risky, but also of a higher degree of complexity, requiring specialist knowledge, multi-disciplinary skills and demonstrated experience to handle successfully.
Experts in this very important sector of the Nigerian economy reveal that underestimating this complexity has, oftentimes, resulted in huge financial losses, unrealised dreams and, in some cases, total ruin among other consequences. They advise that individuals and corporations intending real estate for use; investors, lenders and other interested participants can have their positions significantly enhanced for success in real estate ventures by securing sound advisory services.
Tokunbo Ajayi, an entrepreneur and development professional, says investment in real estate goes beyond raising the needed capital, explaining that an investor needs professional advice to enable him make informed decisions that would not only guard against avoidable losses, but also ultimately enhance returns on his investment.
Ajayi, who is the MD/CEO of Propertygate Investment, Development and Advisory Company, disclosed to journalists at a press briefing in his office recently that the company’s Advisory Group could help investors achieve success and great value when they partner with them on real estate initiative, assuring that the group had the pedigree to do this as their personnel comprised people with deep knowledge and skills, and extensive experience in various areas of real estate development.
To this end, Ajayi informed that the group has come up with innovative products that guide investors through development conception, design and build, development/investment appraisal, development monitoring, property rehabilitation, advisory support to lenders and investors, and building frameworks for real estate ventures, institutional policies and processes.
He explained that in order to ensure success, the delivery of real estate projects must start with sound and rigorous thought process that considers proposal from ideas, through execution to management and eventual disposal before implementation is ever contemplated.
Chuka Uroko
The group, he said, does this for the prospective investor before proceeding to site sourcing (if not yet acquired), designs, approvals and construction. “In essence, we stop our clients from moving to site until the proposal is fully thought through,” he added.
He explained further that his group also assists clients with existing sites, including sourcing for those without site, by conceiving the most suitable development schemes for the location and site; undertakes designs, and carries out construction to completion.
“In all this, our focus is to achieve total resource optimisation and client satisfaction. Our banner here is ‘don’t build on that land until we help you determine its optimal value’, while also helping you through design to completion,” he said.
On development monitoring, he noted that between conception and delivery of a development project lie pitfalls, pointing out that his group assists sponsors of development schemes by monitoring, reporting and advising on key areas of ongoing development, including market conditions, risk, operating models and construction, among others.
“We therefore advise sponsors not to simply believe things will go right just like that but urge them to seek our monitoring service,” he said.