Stanbic IBTC declares support for development of Nigeria’s real estate sector

 

 

IN recognition of real estate as a key investment class, Stanbic IBTC Holdings Plc, a member of Standard Bank Group, has indicated its preparedness to support individuals and businesses interested in long-term investment in the sector. In doing so, the industry will play its catalytic role in driving growth and development of the economy.
The organization made the declaration at the inaugural edition of The Nigerian Stock Exchange (NSE) Real Estate Investment Trust (REIT) Conference held in Lagos.
Themed “Real Estate Investment Trust in sub-Sahara Africa: The role of The Capital Market,” the conference brought together policy-makers, regulators, government officials, private sector players, property developers, asset managers, dealing members, investors and thought leaders to share their experiences and explore growth potentials and opportunities in the real estate market in Nigeria and Sub–Saharan Africa.
Chief Executive, Stanbic IBTC Capital Limited, Mr. Funso Akere, said in throwing its weight behind REIT and putting the sector on a stronger footing, the organization expects to see exponential growth through the inflow of much needed capital from both local and offshore investors.
He said Stanbic IBTC and Standard Bank Group would continue to engage stakeholders at different levels to develop a viable REIT market in Nigeria. “Stanbic IBTC, given its deep experience and roots in Africa, has a duty of sorts to help highlight the huge potential in the real estate sector. By partnering with other stakeholders, we desire to create a win-win situation for all stakeholders by leveraging on our expertise and experience,” Akere said.
On his part, Head, Real Estate Finance (West Africa), Standard Bank, Niyi Adeleye, pointed out that a well structured and sustainable rental cash-flow is the most important driver of the value and quality of REITs and other real estate investments as opposed to the over-weighted attention on project construction cost, property appearance and perceived building quality. He noted that real estate offers impressive returns, and is quite helpful when an investor seeks to diversify, while also serving as a hedge against inflation.
Other speakers at the conference identified key areas that must be given priority to create investment grade real estate assets in Nigeria to include valuation, securitization, liquidity, review of property and tax laws for equitable administration of the real estate sector, as well as instituting an efficient and transparent REIT legislation to govern the asset class. They highlighted that achieving these core structural elements will lead to a more efficient and liquid REIT asset class, and thus be attractive to local and foreign investors.
Chief Executive Officer, NSE, Mr. Oscar Onyema, in his opening address, had described REIT conference as an important platform for stakeholders to discuss the current state of the real estate market in Nigeria and to be acquainted with relevant emerging trends, strategies and policies