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UPDC’s REIT Floats N30 billion Offering


UPDC Real Estate Investment Trust (REIT) has completed arrangements to raise N30 billion by way of offering of 3,000,000,000 units of N10 each at par.
The REIT, is sponsored by UACN Property Development Company Plc.
The floating of the offer, which is to commence on February 19 20123 was preceded by a completion board meeting held in Lagos on Tuesday, where the bank and all the financial advisers to the offer signed the necessary documents. The Chairman UPDC Plc, Larry Ephraim Ettah  said the offer which closes on March 28, 2013 is payable in full on application. He explained that the REIT is a closed ended one, adding that the units of the REIT  would be traded only through a licensed stockbroker once the offer is concluded.
Ettah, while fielding questions from journalists explained that the company has huge projects waiting for execution, adding that the proceeds from the offer would be channeled on the projects. According to him, the REIT will invest primarily in a diversified portfolio of quality residential and commercial real estate property in Nigeria. Its principal targeted assets are investments in properties in prime locations within Lagos, Abuja and other major cities in Nigeria. “I think it is the right time to do it. We are looking at some huge projects that we want to embark on and it is important that we also realize some values from some of our matured properties investment over the period and unlock that value and use it to execute some of the new projects that we have in mind.
“We have a project coming up in Abuja, we have a new project coming up in Victoria Island. Infact, we have significant pipeline of projects coming up and when you have a company such as UPDC that has matured estate, you need to use part of your existing assets like your estate to unlock part of the value. “We are very confident and the market is on a rebound but beyond that, we also think that there are investors out there who are looking for alternative assets outside equity and   I think UPDC, which is a subsidiary of UACN, a company that comes with some legacy, history and pedigree will deliver value to this kind of asset class. We would deliver the threshold return that we are promoting.
The Managing Director of the company, Hakeem Ogunniran also expressed optimism that the offer would deliver value and good returns to investors. “When you are looking at REIT, the first thing is the sponsor and underlining asset. We are the sponsor and we are real estate developer and this is what we do over the years. We have established a credible track record in the field.
“The offer is a very unique investment vehicle, the assets are there and one can see how it has performed over the years. It is going to be very liquid because we have to return advance rent already collected to the REIT so from day one, it is already generating income,” he assured.

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