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

Ogun plans low cost housing scheme

The Ogun State Housing Corporation has said that it is planning to deliver low and middle income housing estates across the state. In a statement, the corporation said its flagship scheme, Plainfields Estate, was already being developed as a community housing prototype that would provide the citizens an opportunity to buy into its plan over the next few years. According to the statement, the estate will, upon completion, have a variety of apartment units. The statement read in part, “The corporation will deliver houses and serviced plots across the three senatorial districts, but will avoid a blanket approach. “This means that these projects will be tailor-made to suit the needs of the locality and the market. Everyone who has recognisable means of livelihood in the formal and informal sectors is qualified to buy. “However, the corporation is keen to help those who need mortgages and who are first time buyers.  Because our objective is to encourage home owne...
Post a Comment
Read more

Informal sector leads job creation in Nigeria

According to the International Labour Organisation (ILO), Africa’s working-age population is estimated to have reached over 490 million in 2012, representing a quantum leap of 259% since 2000 at an annual compound growth rate of 2.8%. Therefore, employment of the continent’s teeming labour population is key to economic development within the region and indeed, globally. Sub-Saharan Africa’s absorption of its working-age population in employment compares favourably to other regions as contained in the ILO’s 2013 global employment trends report.Subsequently, total estimated number of jobs created in the Nigerian economy for the first quarter of 2013improved by 12% over the previous quarter. This development, in line with the latest job creation report released by the National Bureau of Statistics (NBS), indicate that 174, 326 new jobs were added to the nation’s economy.  Overall, conducting quarterly labour force surveys is a positive trend for Nigeria considering ...
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