Skip to main content

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.

Comments

Post a Comment

Popular posts from this blog

Tip #2: Be Dependable and Available

Being a dependable person is extremely beneficial to being a successful property manager. It’s important to respond to phone calls and e-mails in a timely manner. If you are managing numerous properties you will be very busy, but being available when owners and/or tenants need to speak with you is essential. This builds trust within your business relationship and makes your client feel confident that they can rely on you. You certainly have a life outside of work. There is no need to give out your personal cell phone number. As long as they have your e-mail address and you try to keep yourself available as much as possible during regular business hours, that is enough. Time management and organization are also a huge part of being dependable. Don’t spread yourself too thin. Make sure you schedule meetings accordingly in order to meet your clients’ needs. Lastly, a great quality to possess is people skills. You will be working with numerous peop...
Post a Comment
Read more

Quick fixes for quick profits in real estate

It has been said several times that ‘ideas rule the world’ and this holds true in real estate investing as well. We want to examine a time-tested idea that guarantees quick turnaround time and good returns on investment in most real estate markets. We’ll be examining guidelines for making a good return in rehabilitating and selling properties. First, you need to find a property that is in need of repairs or renovation but is located in a good area. 
Post a Comment
Read more

Real Estate Prospects in 2013

Unless the government deliberately sets about injecting money into housing development and other construction activities to boost the economy, 2013 construction landscape will be as dull as that of 2012.  Nigeria’s construction sector has almost ground to a halt along with its real estate market that is suffering an unprecedented glut. As much as experts want to be optimistic about the market’s prospects this year, most still believe that an economic recovery is required for buoyancy to return to the property market, writes BENNETT OGHIFO Players in the nation’s construction and housing sector are simply treading water to keep afloat. The situation is so frustrating that everyone is awe-struck, and has taken the wind out of the sail of real estate brokers who find themselves in a binder over the economic downturn. The property market closed last year with sector operators hoping there would be some slight improvement in the market at the dawn of the New Year. Instead, the supply o...
Post a Comment
Read more