Tag: real estate

  • Why investors ditched real estate for bonds

    Why investors ditched real estate for bonds

    Real estate investment is experiencing its downtime thus leading to investor apathy in the sector with many old and prospective financiers shifting attention to fixed income securities.

    Yields on Treasury Bills, for instance, drastically jumped from average of 6.7 percent on October 27 to 10.3 percent on October 30, 2023 as Central Bank of Nigeria (CBN) sought to attract foreign portfolio investors (FPI) via issuance of open market operations (OMO) bills at 17.5 percent yield.

    Group Managing Director, Meristem Securities Limited Oluwole Abegunde, , who gave these hints, was guest speaker at a Business Forum organised by Ubosi Eleh + Co with the theme, Current Economic Realities and its Impact on the Nigerian Real Estate Market.’

    According to Abegunde, the hyper inflationary environment, high exchange rate, and volatile exchange rate, which has seen the naira trading for N1,300 to one US dollar, have combined to increase caution on discretionary spending such as real estate.

    He said that tighter financing conditions have worsened financing for new real estate projects and also depressed returns on highly-levered on-going projects, noting that, on average, rent review is not adequately compensating for spiraling inflation.

    “Building materials inflation is on the upsurge and it is positive for merchants, but negative for real estate project return on investment (ROI). Naira depreciation is leading to higher construction costs via more expensive imported components,” he said.

    He pointed out, however, that trade GDP and e-commerce growth should trigger increased demand for warehouses, adding that there has been moderate growth in retail (malls, fitness centres, entertainment centres), health awareness and hedonistic lifestyle which are offset by lower income.

    Abegunde also stated that real estate has been impacted by the rising cost of operation which has triggered hybrid work culture, making the vacancy rate in commercial real estate to persist. He added that mixed impacts of migration, weak consumer spending power, favorable mortgage policies/regulation have left residential real estate performance on the sidelines just as the hospitality sector remains depressed due to rising construction cost and increased operating expenses.

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    “In the midst of all these, however, pockets of opportunities still exist in real estate in the areas of land banking, trade-related real estate projects, real estate investment trusts (REITS), house flipping among others,” Abegunde said, assuring that residential real estate in locations that afford greater flexibility in rent review can also prove attractive.

    Also, Emeka Eleh, a Principal Partner at Ubosi Eleh + Co, has highlighted the purpose of the forum which, according to him, is to inform, educate, provide a platform for sharing ideas, get feedback, interact with shareholders, and also as part of their corporate social responsibility (CSR).

    He said that the Forum holds two to three times yearly. The previous one was held in Victoria Island because they moved the location round for the convenience of their clients and shareholders.

    The forum, he said, was part of their efforts as a firm of estate surveyors and valuers to champion engagements to deepen the real estate space.

    “We also have regular speaking engagement by our partners; we do mentorship, we have a monthly newsletter publication and also a publication of our flagship annual Real Estate Report which analyses macroeconomics and gives real estate market updates and forecasts,” Eleh said.

    The Realtor explained that their strategy is to render real estate advisory services and also to make real estate information readily available for decision making.

  • How to grow economy through real estate, by experts

    How to grow economy through real estate, by experts

    The International Real Estate Federation (FIABCI), Nigeria Chapter, has urged the federal and state governments to reposition with new policies and initiatives that will foster growth.

       President of FIABCI-Nigeria, Mr. Gladstone Opara, led the call at the 50th anniversary of FIABCI-Nigeria Chapter, entitled: “Repositioning Real Estate Industry for the future: Ethics, Affordability and Sustainability” in Lagos.

    Noting the multifaceted hiccups facing the real estate industry, he said if workable policieswere implemented, they would put the industry on the path of growth.

      Opara said with many years of existence of the industry, it was the belief that many things should have improved.

    However, he said while there are improvements in certain areas, the industry is experiencing backwardness in many other areas.

       He said the real estate industry should be repositioned in terms of development initiatives, financing, mortgage, ethics, environmental and social governance, sustainability and ethics.

    Read Also: ‘Real estate value drops by 10%’

       “We feel that if this trend continues, it will feel like doing the same thing every day without progress and the future generation may not find anything good to latch onto.

     “The government needs to come up with new initiatives that will benefit the operatives and development of the industry now and in the future.

    “The major challenge faced in the past years of FIABCI is creating awareness about the need for international networking to grow the industry. Nigerians are not taking advantage of this,” Opara said.

    Chairman of the occasion, Dr. Tunde Lemo, explained that the housing sector is important to Nigerians given the increasing population estimated to reach 411 million people by 2050, adding that it has become crucial to start thinking about how to provide affordable housing for all citizens.

      Lemo who doubles as the former Deputy Governor of Central Bank of Nigeria (CBN) said: “Where we are now, economists tell us that we still have a severe housing shortage of between 21 and 28 million and requiring about 21 trillion to fix.  

  • ‘Real estate value drops by 10%’

    Nigerians are losing between six to 10 per cent of the value of their real estate every year.

    Chief Executive Officer, Gizmotech Limited, Zubbi Nwosu made this known during a real estate business forum in Lagos.

    He said even though the value of real estate assets  seems to be appreciating in naira terms, but when considered against a basket of foreign currencies, Nigerian real estate is losing value every year.

    Gizimotech is a multinational company that provides technical services in the technology space with Canadian affiliation.

    The forum with the theme ‘Current Economic Realities and its impact on the Nigerian Real Estate Market’ was organised by Ubosi Eleh +Co, Estate Surveyors and Valuers.

    Nwosu therefore stressed the urgent need to fix the country. However, fixing the country won’t just be for the real estate alone, it has to be even for people who have to travel from place to place for work, it also has to be fixed for people in the villages, who have to go to school that are under equipped.

    He also stressed the need for the government to reduce its spending adding the level of taxation in Nigeria is horrendous. He described Nigeria as a horrible place to doing business, adding even for import there is an exposure of 35-40percent to import equipment in the country.

    “We are talking of excise duty, the Federal Inland Revenue Service (FIRS) has been very aggressive, nowadays they keep VAT, they keep withholding tax, small businesses are choked. So, government talks about tax form, they set up committees for it, they should start acting and not just talking.                               

    Nwosu noted the situation for real estate and for virtually every sector of the Nigerian economy is horrible, in fact laughable to pretend that people that investing in the real estate space have made profit in the last five years.

    It depends on how you compute profit, many have made profit in naira but in real terms/in dollar terms they have actually lost money horrendously, most of Nigeria’s problems are predicated on the falling value of the naira.

    The naira is falling because of lack of leadership in the people in charge, the messaging is poor and its being going on for a long time, we don’t really have a change of leadership because we have the same party in power.

    This pretense that the baton has been past is actually not true, the people in power today are different but they sustained the last government and their body language is not good.

    We have a serious spending in Nigeria, we are trying to liberalize the exchange rate by the parallel and the official rate, the naira has collapsed but politicians are celebrating because when they sell the oil revenue they get more naira so they have more naira to spend,

    So its feeding the greed in the system, the people at the top may not realize it, but there is a serious spending problem and until the international community and the local community acquire some confidence in the leadership of Nigeria people will continue to keep their saving in US Dollars.

    I would suspect that we have between 20 and 50 billion US Dollars in bank notes in the homes of Nigerians and this is not acceptable, you can’t blame them the naira is constantly losing value if we can bring the naira back to N350 to one dollar most of the problems in the economy will disappear

    On the effect of this on the real estate, Nwosu said it’s a pretense to say that people who invested in real estate are making money, it’s not true, he insisted.

    Nwosu observed that Lekki, Banana Island, Victoria Island in Lagos state were over built. According to him, far more units available for sale than any capacity to buy it. He said the reason is that the prizing has remained visually high that most of the sellers don’t need the money.

    They had actually taken a bet in real estate as a hedge against savings and a hedge in some cases against being arrested for corruption or money laundering so they put it in real estate, Nwosu stated.

    “Now, when they need money they find out that they kept their money in US Dollars they will be much better off, and when the sell increasingly they buy dollars either they keep it in cash in Nigeria or keep it in cash abroad, its horrendous cycle.

    Our leaders should come out and tell the people where they expect the naira to be in 6 months’ time, even in 3 months’ time and look Nigerians in the eye and say that they will fight to keep the naira there, that’s the beginning.

    They must lead by example, politicians can’t be spending money frivolously, there must be accountability”, he expressed.

    Describing the losses as horrible, Nwosu noted a lot of people took positions in real estates, hoping to pay school fees for their children abroad and now even when they sell they are still coming shut adding it’s a very clear issue that real estate is losing money in real term.

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    Mubo Olasekun, Chief Executive Officer, Meristem Finance Limited who spoke on behalf of the Group Managing Director, Meristem Securities Limited, and Guest Speaker, Oluwole Abegunde said though the state of the economy had adversely impacted on the real estate investment in Nigeria however, there are still opportunities in Real Estate Investments Trusts, Land banking, Trade-related Investments and House Flipping.

    On how the dollar exchange rate had affected the real estate market, Olasekun said there was no transaction in Nigeria that doesn’t have FX impact. She noted not all the raw materials were manufactured here in the country, adding even though they are manufactured here you still need some form of real estate touch.

    “Some of the raw materials are not produced here, you have to import them, you need FX to be able to get those things. All of these have direct impacts on the prices of raw materials/building materials you need for real estate properties”.

    On how else funds could be raised for real estate Olasekun advised on equity where people could come together to raise funds for whatever projects that they are doing rather than going to banks to borrow money adding borrowing money from the banks make it much more expensive and there may not be profit at the end of the day.

  • How Bright Sekoni is mining untapped real estate investment

    How Bright Sekoni is mining untapped real estate investment

    Bright Sekoni is a Nigerian entrepreneur and the founder of Audacia Prime, a prominent real estate company specializing in strategic property development and investment.

    Born and raised in Lagos, Nigeria, Sekoni’s inspiring journey from humble beginnings to success has made him a prominent figure in the real estate industry.

    Bright Sekoni attended primary and secondary school in Lagos, Nigeria, where he demonstrated remarkable academic abilities and a keen interest in entrepreneurship. After completing his secondary education, Sekoni pursued higher education at Lagos State University, where he further developed his business acumen and gained invaluable knowledge in various disciplines.

    Career and Entrepreneurship

    Driven by a passion for real estate and a desire to make a significant impact in the industry, Bright Sekoni embarked on his entrepreneurial journey by founding Audacia Prime. Under Sekoni’s visionary leadership, Audacia Prime has grown into a highly reputable real estate company known for its expertise in strategic property development and investment.

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    Audacia Prime is committed to delivering exceptional real estate solutions tailored to the needs of its clients. The company specializes in strategic property acquisition, development, and investment, with a focus on identifying high-potential opportunities and maximizing returns. Sekoni’s keen eye for profitable real estate ventures and his ability to navigate market trends have contributed to Audacia Prime’s success.

    Through his leadership, Bright Sekoni has established Audacia Prime as a trusted partner for both individual and institutional investors seeking lucrative real estate ventures.

    The company’s comprehensive range of services includes property development, project management, property valuation, and asset management. With Sekoni at the helm, Audacia Prime has completed numerous successful projects and has built a strong reputation for delivering quality and value to its clients.

    In addition to his achievements in real estate, Bright Sekoni actively engages in philanthropic initiatives aimed at empowering communities and driving social development.

    He believes using his success to make a positive impact and has been involved in initiatives that promote sustainable housing solutions and support underprivileged individuals and families.

    Bright Sekoni, the visionary founder and CEO of Audacia Prime, continues to receive recognition for his remarkable contributions to the real estate industry.

    In a recent event hosted by Forbes, Sekoni was endorsed by the Minister of Youth, further solidifying his reputation as a trailblazer in the business world.

    He was nominated to the Future awards Africa in the category of Entrepreneurship class of 2023

    According to Forbes, the award is referred to as the Nobel Award prize for Africans to celebrate young and productive individuals between the ages of 18 and 31 in various professional fields.

    With this endorsement, Bright Sekoni’s profile as a prominent figure in the real estate industry continues to soar.

    His innovative strategies, coupled with his passion for social impact, have positioned Audacia Prime as a leading force in the market. Sekoni’s vision, combined with his ability to adapt to changing industry dynamics, has propelled the company to new heights.

    Bright Sekoni’s inspiring journey from a Lagos-based student to a successful entrepreneur and real estate developer is a testament to his resilience, determination, and unwavering belief in the power of real estate to transform communities. ​

    His story serves as an inspiration to aspiring entrepreneurs, demonstrating that with hard work, strategic thinking, and a commitment to excellence, one can overcome challenges and achieve remarkable success in the real estate industry.

  • Policy changes and emerging trends in real estate

    Policy changes and emerging trends in real estate

    The real estate sector seems to be thriving in some market segments in Nigeria and in a few other African countries. In some of the markets, the rentals and offices are doing well while in others the medium and top echelon residential houses are raking in huge Returns on Investment (RoI) to realtors. Quoting Estate Intel report, Assistant Editor OKWY IROEGBU-CHIKEZIE reports that, across the continent, new policy adoptions such as the removal of fuel subsidy in Nigeria, the adoption into law of Kenya’s finance tax as well as Egypt’s new tax initiatives will change the face of real estate on the continent.

    The economy of any country affects its real estate market, especially where data is available and can be relied upon.

      In most advanced economies such as the United States, Canada and the United Kingdom, housing prices are related to the state of the economy. It is a mirror of the economy and how prosperous the citizens are. This is so as people move from, for instance, a one-bedroom to a two, three-bed, town houses or semi-detached duplexes.

      It also indicates how policies affect the citizenry, including how prosperous citizens have become that pressured their movement from a poor neigbourhood to a middle class abode.This underpins the fact that across the continent, new policy adoptions are turning the tide on businesses.

      The most recent in Nigeria is the removal of the decade-old fuel subsidy, the adoption into law of Kenya’s finance tax that is set to increase taxation on core components such as fuel and income tax, as well as Egypt’s new tax initiatives focused on components.

    However, a report by the Estate Intel says local financing has also faced its share of downturns. It noted that benchmark interest rates across Nigeria, Ghana Kenya, and Egypt have remained elevated at 10.5 per cent, 18.5 per cent, 29.5 per cent and 18.75 per cent, resulting in an increased cost of capital. As such, it stated, market performance across the real estate sector remains varied with the changing macroeconomic environment impacting development pipeline, market take up and real estate prices.

    The report further stated that it anticipates the second half of the year to continue reflecting limited transaction underpinned by cautious optimism by investors.The article zeroed in on the performance of the office, residential, hospitality and retail sectors across core cities of Lagos, Accra, and Nairobi and their expected outlooks.

     Mixed office performance

     The report stated that office development  across Lagos, Nairobi and Accra declined by 34 per cent, 53 per cent and 52 per cent in the year compared to last year. This was attributed to a subdued macroeconomic environment that has impacted on the cost of financing as well as the cost of construction materials.

    It stated: “Interestingly, with the exception of Accra, Lagos and Nairobi are still tenant markets due to an oversupply recorded pre-pandemic with occupancy levels averaging 75 per cent for Grade A offices and 80 per cent for Grade B offices. As a result, average office rents have remained stable across board over the past five years as illustrated below.

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    “However, bright spots remain with a market such as Tema, in Accra emerging as a stand out neighbourhood with a five year average growth rate above five per cent.”

    The report also stated that in terms of an outlook in some major cities in Africa with heightened inflation and rising construction costs, it expects limited new project announcements across the markets in the near term resulting in a core balance between demand and supply.

    It said: “Residential markets have recorded deficits in extremes of the market across both the ultra-luxury and the affordable segments. In the residential sector, the ultra luxury and affordable segments of the markets remain under supplied, effectively presenting an opportunity to developers. In Lagos and Accra, for example, the ultra- luxury segment accounts for only two per cent of the market, while in Nairobi it accounts for 0.5 per cent of the total stock. In addition, the affordable housing segment accounts for 10 per cent in Lagos, one per cent in Accra and seven per cent in Nairobi of total stock.”

     Luxury and deluxe segments

     On the other hand, the luxury and deluxe segments remain oversupplied accounting for 22 per cent and 41 per cent of total stock on average across the three markets.

     As such, this has resulted in rents remaining relatively stable in dollar terms without notable growth over the past five years across the majority of the neighbourhoods as illustrated below. Notably, the case has been different for local currency rents, with prices remaining volatile and reactive to heightened inflation across the cities.

    Still, markets such as Ajah in Nigeria and Ridge in Accra have emerged as stand out markets recording five-year growth rates in dollars in terms above five per cent due to their higher composition of luxury and affordable housing residential units resulting in heightened demand

    Notably, renewed government initiatives on affordable housing, especially in Lagos, Nairobi and Accra, may likely result in increased institutional participation, focused on this asset class.

    Nairobi, for example, is already seeing heightened institutional investor participation. This has been evidenced by the recent announcement by the International Finance Corporation (IFC) of plans to co- fund the development of 5,000 affordable housing units, in collaboration with the International Housing Solutions (IHS), in Nairobi.

    The report stated that overall, the outlook for the sector is positive, with increased focus on ultra luxury and affordable residential housing.

    Pent-up International and domestic demand is overpowering economic headwinds in the majority of the cities across the hospitality sector rooted in real estate as exquite  designs, location and service top consideration.

    Also, according to the report, the hospitality sector across the continent has continued to bounce back.The development pipeline remains high, recorded at 3,525 keys, 3,161 keys and 1,961 across Lagos, Accra and Nairobi, according to the W Hospitality Development Pipeline Report. Occupancy rates have also bounced back with Nairobi and Lagos recording 57 per cent and 68 per cent on average effectively tracking pre-pandemic levels.

    Estate Intel stated that with international travel bouncing back, the sector’s outlook remains positive. For example, countries such as Kenya and Ghana recorded a 49.9 per cent and 45 per cent increase in Q1:2023  in international tourist arrivals, driven by business and leisure travel.

    In addition, domestic tourism is also emerging as a strong driver for hospitality demand. Interestingly, this has been reflected in the steady increase in the number of shortlet homes across the major cities. So far, Lagos, Accra and Nairobi have recorded a 199 per cent, 132 per cent,119 per cent increase in shortlet homes over the past three years according to data from AirDNA.

     Another source, AirDNA, in a report, also stated that their outlook for African hospitality in key cities is a continuing momentum despite speculations of an oversupply due to the vibrant development pipeline.

    “The retail sector remains subdued with increased cost of living set to impact it further.The formal retail sector remains relatively subdued with a limited active development pipeline of less than 50,000 m2, accounting for two per cent,13 per cent and 24 per cent of total stock across Lagos, Nairobi, and Accra as illustrated below.

    “This decline in new supply has been a reaction to the weak performance of shopping centres delivered within the last decade. Demand for prime retail space, especially those with the typical dollar-linked rentals will remain subdued and impede any new project announcements moving forward.

    “Notably, while occupancy levels remain relatively healthy in shopping malls, rising inflation coupled with currency depreciation are likely to impede the need for new space.

    “As such, major retailers are either focusing on consolidation by giving up space in lower quality locations such as Smartmark in Nigeria or in the markets such as builders in Kenya.

    “This trend is expected to continue into Q2:2023 with declining disposable income impacting on consumer purchasing power.

     “Overall our outlook for the sector remains neutral at best with weak market fundamentals impacting on the possibility of an active development pipeline, especially in cities such as Nairobi,” it added.

  • Our Independence plan, by real estate firm

    Our Independence plan, by real estate firm

    Sujimoto Group, Nigeria’s  luxury real estate conglomerate, has swung open its window of opportunity for only 30 days, allowing investors and buyers to acquire units in its automated LeonardoBySujimoto apartments.

    The 150-metre-tall waterfront project on Banana Island will be the tallest residential building in Nigeria; first fully-automated interactive lobby; first with a standard Private IMAX cinema; creche and kiddies arcade room; and a full home automation system.

    Defined by its exclusivity, meticulous attention to detail, and quality, the Leonardo project signals a once-in-a-lifetime opportunity to own a Sujimoto property.

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    Prospective home buyers or investors who might have considered luxury now have the chance to seize their dream of acquiring a waterfront property, as a gift at independence.

    Dr. Olasijibomi Ogundele, GMD Sujimoto Group, said during the 25 per cent price off announcement at the company’s Lagos headquarters: “We are discounting the prices of the Leonardo for just 30 days to ensure everyone seizes this period to key into this and become a Banana Island landlord or landlady before this window closes by October 1. First, it was ‘GiulianoBySujimoto’ followed by ‘LucreziaBySujimoto’, both of which sold out before final completion’’.

     Dr. Ogundele, managing director of Sujimoto Group, is recognised as the czar of luxury Real Estate Development and the mastermind behind these projects.

    Some of these have etched an indelible imprint on Nigeria’s skylines, a testament to their mastery of modern-day engineering.

    Now, The Leonardo serves as a commitment to the teeming customers who wish to have the luxury of owning a unit of Sujimoto’s iconic apartments that offer unparalleled amenities, breathtaking views, and a sweet taste of extreme opulence served through exquisite craftsmanship.

    Investors who bought the Lucrezia off-plan for approximately $850k are today selling it for $3 million in less than two and a half years. This is the reason why the Sujimoto brand has consistently positioned itself to create value for customers, helping them find ways to turn their $1 into $3. 

    The Leonardo project has also given opportunity to people who desire a New York-style loft 1-bedroom apartment in Nigeria. The one-bed you’ll find in New York is less than 50 sq. m, but the one bedroom in Leonardo measures up to 140 sq. m, combining almost triple the size of the standard bedrooms in the Big Apple. 

    The LeonardoBySujimoto also offers 1, 2, 3, and 4-bedroom apartments, as well as 5-bedroom penthouses, all at a limited-time discount for uncommon investors who want to take advantage of an off-plan investment opportunity. 

    Following a series of findings, the nicest and most expensive 3-bedroom apartments on Ikoyi Road and V.I. are selling for $2 million to $4.5 million. The design of the Leonardo is three times better and two times more affordable! The 3-bedroom home you are acquiring for $1 million at the Leonardo will be sold for $1.5 million during construction and $2.5 million upon completion, giving you over a 220% ROI in 2 years. 

    The prestigious Leonardo penthouse stands out in the market, commanding attention and admiration from discerning homebuyers for its unique features and facilities such as the limited-edition sanitary ware by Zaha Hadid Sanitary wares (which has ever been used by only 3 developers in Africa), a fully fitted European Standard kitchen, 3-metre floor-to-ceiling doors, Duravit’s by Phillip Stark, award-winning sanitary ware, Simone Saragoni’s Technogym Olympic-sized temperature-regulated swimming pool, a mini-mart, mini-clinic, hair salons, creche, and an interactive lobby of 5-star hotel standard, amongst others. 

    All these offerings come with a flexible payment plan that spreads within 30 months and generates instant income on pre-leased units upon completion. By taking advantage of a discount, buyers can secure a property that perfectly embodies their desired lifestyle, complete with the lavish features and finishes that epitomise luxury living.

    “The 25% discount is valid until October 1st, a symbol of independence and our patriotic contribution to such an occasion. These offers are subject to Sujimoto Properties’ terms and conditions”, Dr. Ogundele added.

  • Real estate firm fulfils obligation to subscribers

    In a show of transparency, one of the leading real estate firms, Winhomes Global Services Ltd, recently held a physical allocation of land to subscribers at one of its estate sites, Lekki, Lagos.

    The colourful event held on the 16th of April, 2002 at Winhomes Estate grounds was attended by hundreds of subscribers, high-flying guests, and top real estate industry professionals.

    The CEO of the company, Mrs. Ifeoma Stella Okengwu, reassured subscribers, and prospective investors that everyone who invested in the estate project would not have any cause to worry.

    In her words: “This is the first batch and we will still have the second batch in the coming months.”

    Winhomes CEO also showed her charitable side as she rewarded some of the company’s deserving sales consultants who scored high in performance with gift items ranging from refrigerators, television sets, and air conditioning sets.

    A chemical engineer with a background steeped in the United States of America, Okengwu boasts a long list of accolades in the oil and gas, where she runs Stoke and Caldwell Services, a leading company in the upstream and downstream sectors.

  • Adebowale Odutola: I‘m female version of my father

    Princess Adebowale Odutola is a real estate guru who studied law and politics. She is also the Creative Brand Director of TPS LUXURY, a brand synonymous with exotic bags, furniture and other accessories. In this interview with Yetunde Oladeinde, she talks about her early life, carving a niche for her bags and more.

    What was your early life like?

    I was born into a royal family of seventeen children, the last of the girls. My father is from Southwest; my mom is from the middle belt. I grew up in Lagos State and so my background is English and Yoruba. I went to school like every other person, graduated from university and had a good life. It was those days when the departmental stores in Nigeria were like Selfridges. We had UTC right behind our house and it was an opportunity to have big deep ice cream and then I remember those days that we had Mintex, yam and sausages for breakfast. Lunch was jollof rice with chicken and ice cream. And further down Modupe Johnson in Surulere, there was big deep. We could buy big deep coated with chocolate. Then we thought growing up then was normal.

    Apparently it was luxurious because later I found out that even those who were my classmates in school didn’t have the kind of pedigree that I had. My dad would drop me off at school with a Mercedes Benz. We travelled, went for summer vacations. Then it was not Marks and Spencers; it was Saint Michaels. We had the best things in life, but, above all, we had dignity, discipline and the business acumen. My dad was on the board of so many companies and he had a lot of friends. They were called the five business gurus that actually ran the show in Nigeria then. So, when I look back at where I am coming from and where I am today, I just see myself as the female version of my late father.

    He was business-oriented, he was a strict disciplinarian, a devout Christian and above all, he was very neat. Everybody knew him to wear white. So, looking at where I am today and where I am coming from, I would say that my childhood has influenced a lot of what I do today. I have a niche for excellence and perfection. I am very elegant; I love elegance. I won’t say I am luxurious but I have taste for the good things of life. As a result, I work very hard.

    How did TPS luxury start?

    I started this business in 2013. Just like a big joke, I started with the scarves of my old boubous; you know, when you make a boubou and you have so much leftover. I brought out a whole pile and I was amazed. Then I started with just ankara bags, no leather. It was just ankara. Then I found out that the guy that was making my bags in Lekki market was using leather. I asked then where they got it and they said Mushin. We took off and went to Mushin. I went with two policemen; thinking of Mushin in those days that they could rob me. But guess what, I went into Mushin and nobody knew I was there. And I bought and bought lots of leather in one day. So, we started using just a bit of leather still with the ankara. Overtime, we started improving on our designs. And then I think I was just doing the regular Channel look that everyone was doing.

    When there is a craze for something in Nigeria, there is hype and everybody just goes in one direction. So, I also went that way and it was Channel. At a point, I said to myself, why must I do what everybody is doing? Then I started drawing my designs. I also asked myself, how else do I carve a niche for my designs, and that was how I started naming them after Nigerian women, which is how Morin Desalu came into being. She was buying the Channel look designs from Ghana but they had the problem with the locks for that particular design. I had fixed two locks for her. So, I said, “Ma can I do you a bag that the locks would not fall out or have any problems?” She said yes, so she was one of the very few that I did the Channel lock for but I now improved on it, so that it does not look like the regular Channel. We quilt it, use leather and Ankara. That is why I named that particular design Morin Desalu. And then overtime, once I do a design and I notice that this particular person is my client or she has bought three or five bags, I also do another design and name after that person. So when people ask why my bags are named after millionaires, I say to them, they are not millionaires. They are actually women who also support women businesses. They don’t need to be millionaires.

    The brand will be five this year, what does this mean to you?

    Yes, we are going to be five years in July. When we were three years, we changed the narratives. And then we started doing more of the leather in the exterior with just a bit of fabrics outside. Of course, we stepped up our game. We don’t do hardware in Mushin anymore. We do it in Hong Kong. I got the nameplates which have TPS luxury and I got it manufactured by the same company that manufactures for Samsonite. We have been able to identify the big manufacturers in Asia to also do our nickel plates and our hardware because they are already tested and would last over ten years. All the hardware on our bags do not tarnish, they don’t fade and they don’t wear-out. And then it has been success all over.

    What are some of the high-points for you?

    In the last four years, I have gotten four awards. The first was in 2017, I got the Emerging Fashion Brand in April from Bellaafricana. The same 2017 in November, I got the FADAN President’s Special Recognition Award for our contributions to the fashion industry. In 2018, I won the Lead Grand Award for excellence in the fashion industry. Then in 2019 March, I won the Best Female Entrepreneur Award by City People publications. That again has motivated us. For me, it’s an inspiration. It is also the catch to keep stepping up on my game.

    In the last two years, we have released three different designs. We released the latest on 23 February 2019, called the AAJ, the Annabel Adeyemi Johnson label, which has been a bestseller amongst the crème d’ la crème  of this country. Just before then, we released the Yewande Zaccheus collection; she is also a woman entrepreneur. She is a dogged entrepreneur, extremely hardworking woman. And then we had the Ndidi Obioha collection. We also did the re-branding of our AAA collections, named after Adebisi Abiola. This means that I redesigned it. The initial design was so easy to copy, so I decided to make it complicated and better designed. It was beautiful and adorned with rose gold, rainbow collection with hardware.

    What should your fans look for as the brand clocks five?

    For our fifth anniversary, which we are doing in July, we are going to unveil the H I K, Hajia Ireti Kingibe collection. The big question here is why am I naming the bag after her? Hajia has touched my life in a way that even I can’t explain. Her younger sister carried my bag in Abuja and she saw and liked it. She told her, ‘I bought it at an event but I have the person’s number.’ So, her younger sister brought her to my place and that was it. That was how she walked into my life and ever since then it’s been a success story. Every bag she carried, everybody wanted it. So, I started stocking my bags in her house in Abuja without her charging me a dime.

    She’s been selling for me without charging me a nickel and without putting a naira on my products. And today in Abuja we have sold nothing less than 50 bags between February and June this year. So, that is why I said how do you pay back, how do you show appreciation or gratitude to such a person? And then she was 65 years this year. She’s an ageless beauty. She’s beautiful in and out. So, I decided to design a bag that would be named after her. I have been working on the design for over two and half weeks and it will be unveiled at our fifth anniversary. And I can tell you, it’s a must-have for every woman of class in Nigeria. I know it would sell.

    Apart from wanting to celebrate the Nigerian women like we do, we also like to celebrate the Nigerian culture. We have different fabrics that are synonymous with Nigerians. There is aso-oke, damask, adire and Ankara. So, we work with all these to support local content, which is why every product of ours, if it does not have an Ankara on the exterior it will have in the interior. And today by the grace of God, I have noticed that everybody wants to carry a TPS bag and they keep telling me that your bags are just different. There is something about them, they are not dull, they are not monotonous. They catch your attention. I also feel that what makes us feel or stand out is not only because of our hardware but because we also embellish.  We hand bead, like Fendi does. But Fendi beads only on soft fabrics, we bead also on leather as well. So, our beaded works are different and I think they are one of our bestsellers.

    So, you can imagine a bag that is beaded, it’s got leather on it, it’s got fabric and the hardware is super; you will want to buy it at any price. You don’t even want to price it, you just want to own one. And they are master pieces. As I always say, they are timeless luxury, timeless pieces that will withstand the fashion of 2025 to 2030. Even your children can own whatever bag you buy from us.

    The leather we use in this country works well with our temperature; it does not peel like those designers bags. If you store them for too long, the designer bags peel. But those who bought my bag from the beginning are still using them today. I only always say to them, can you please buy a new season? From the beginning till now there is a world of difference, even in the finishing. We have tried to move from grace to glory. It’s been like a geometric progression for us.

    We started from a humble beginning; we are still crawling but we are trying to crawl now with class, with elegance, with poise. So, that is what we have been doing.

    Why did you focus on bags?

    Good question. Initially, I was into real estates and, of course, I made money. Real estate and the real estate market were taking a downturn. It was becoming very difficult to get a client who wants to take a lease, it was that bad.  There was a lot of ‘To let’ everywhere, there was a lot of ‘For sale’ everywhere. It was rather tough and at that point I was just living on my savings. I had a lot of briefs but there were no clients. It wasn’t just me. It was everybody. I told myself that I needed a business that would give me money every day and I would have passion for it. Then it was my birthday and someone gave me an Ankara bag. I looked at it and said ‘Father, is this an answer to my prayers?’ It looked like a good idea. I haven’t seen people doing this. It was at that point that I pulled out my scarves and I started.

    And today, I say it with every sense of pride that I stand at par with big labels in the world because the hardware that they use is the same hardware that we are using. And ours is even more interesting, our bags have more content; they look more appealing. In those days, everyone wanted to carry a Gucci, Channel, Escada, Versace, Celine or Cavalli bag. But guess what, everyone wants to carry a Nigerian bag now. I named them after those who initially encouraged me with this business. They are those women who own bags that are worth ten thousand dollars; those who buy the very expensive designer bags in the world. They were the first set of women who were buying my bags. So, if you look at the run-down of the names of our brand ambassadors, they range from Adebisi Abiola, to Dame Adebola Williams, to Dame Abimbola Fashola, Morin Desalu, Olori Ladun Sijuwade, Hajia Bola Shagaya, Oludolapo Osinbajo, Annabel Adeyemi Johnson and Atinuke Onayiga.

    Onayiga was a Permanent Secretary in Lagos State, in charge of primary healthcare. How much does a civil servant earn but she appreciated my bag and bought one. And then she bought a second one. Then I found out that this woman is in a line of occupation where she helps women in primary healthcare. So, she retired from Lagos State, I did a design and I named it after her. This is one of the beaded lines. So, you see when you see women who support women in business, women who uplift women, I always want to celebrate them without a doubt. You also have Yewande Zaccheus; she always does this show, where she encourages entrepreneurship. Oludolapo Osinbajo is the wife of our vice president. She’s a hand-crafter, she loves to knit and she loves to crochet. She loves gardening. She does everything with her hands and, as such, she encourages entrepreneurs; men and women. Her recent net project eventually gave birth to a day out with hand-crafters.

    It’s amazing the kind of talents we have in this country and which is why I said that the recession brought out creativity in Nigerians. And now that there is going to be a ban on imported products, this is when made-in-Nigeria products should be fine-tuned to meet international standards. This is why we are ready for exports at TPS LUXURY. We have gotten our NEPC export licence; we have also gotten our trademarks stamp. We are ready to hit the world. By the time you know what is happening, which is what I am looking at, it will become a household name like Gucci. But we are not doing mass production here. We are doing bespoke bags. We have started what we call, ‘Build-your-own-bag.’ The client comes in and you pick your skin, pick your style and you tell us the kind of hardware that you want as well as your choice of color.

    Let’s talk about the memorable moments in your life

    That would be my first awards. It was a very keen competition between five labels and people had to vote. So, when I look back today, I say God….I won. I had never won an award in my life before this. Apart from all those awards that you win in school. When I was in secondary school, I won the commonwealth scholarship which was not an award, I earned it. I competed with 82 students from 82 schools in Ogun State. I went to Federal Government Girls College, Sagamu. We all competed for just one scholarship and I won it. But this one was the first time that I was competing for an award. So, those are good memories. I think life itself is a good memory for me. I have also had my fair share of ups and downs. I feel that my life is a testimony.

  • Real estate group eyes big ticket jobs

    Seven real estate experts have formed a group to enable them handle big ticket jobs.

    Known as the Real Royal Professionals, the group has got the nod of Estate Surveyors & Valuers Registration Board (ESVARBON). With the approval, the consortium will operate as a body of experts in surveying and valuation.

    The lead consultant of the group, Chima Emele, said the consortium would fill the need for bigger firms in the profession.

    At the inauguration of the group in Lagos, Emele said it would promote the value espoused by ESVARBON, which is for firms to merge to successfully bid for large jobs from the government, companies and individuals given the the expertise in different fields each of the firm would bring to the table.

    According to Emele, this is because it is better for firms with expertise and core competencies various aspects to form a bigger body to pitch for accounts.

    He said: “Our group of seven members have various competencies as individuals and have agreed to work together to deliver services to our clients. We believe we will be more relevant as a group that we are now rather than individuals. We have fellows of the institute, associate members, lawyers, tax consultants, accountants and many more. The consortium is positioned to handle any job, indeed all that it takes to deliver competitive service rather than individual companies is in our kitty.”

    Emele said the institution has been urging firms to merge to have access to bigger jobs, adding “that the bigger the merrier.”

    The idea, he said, is that instead of individual firms that may not make huge impact on the society as units, coming together will enable the consortium to deliver better service.

    He said: “If a job is advertised and we give you our profile and you see the calibre of people there, you will not have any option but to consider us for the job because we have professionals in all aspects of agency management. The beauty of the team is that we cross-fertilise ideas, debate, fine-tune and come out with the best idea, process and procedure for our clients. For instance, I am a professional in plant and machinery; another member is a facility management expert, property valuation, agriculture valuation and agency. In essence, any job we prospect for, we have a specialist that will be in charge to ensure we deliver the best to our prospective clients. It is the best for the profession, the nation and also for the public who may need our service,” Emele said.

    He said there is a memorandum of understanding (MoU) binding their operational guideline on their actions and resolutions in all that they do.

    Furthermore, he said the consortium has an arbitration unit that can resolve issues and disputes including model for profit sharing.

    Head of Department of Estate Management, Yaba College of Technology, Pastor Benjamin Ajayeoba, while commending the consortium, hailed the firms for coming together as most of them are his former students. He encouraged them on professionalism, integrity and openness. Noting that that is the only way they can succeed.

  • ‘Real estate funds panacea for housing shortage’

    ONLY real estate funds can address housing shortage in the real estate sector, a report has said.

    FSDH Merchant Bank stated this in its report titled: ‘’Real estate fund — Investment vehicle to address housing shortage in Nigeria’’, undertaken by its research arm, FSDH Research.

    The report observed that there was a significant shortage of affordable housing in the country estimated at about 20 millions.

    ‘’This means that Nigeria needs to build between close to 20 million housing units to ensure that Nigerians have this basic human need,” it added.

    In monetary terms, Nigeria might require between N170trillion and N200 trillion to bridge the housing gap if each unit costs N10million.

    It said: “Given the rising population in the country, the housing shortage keeps increasing.

    ‘’Meanwhile, the developments in the real estate sector of the  economy, which is where activities that will close the housing shortage will take place, have not been impressive with economic activities in the real estate sector consistently contracting since Q1 201.6.”

    The report suggested that investors in the retail and high-networth segment could create wealth in real estate through regularly investing in a Real Estate Fund (REF) without investing directly in the brick and mortar.

    Explaining REF, the report noted that it is an investment vehicle that pools resource to invest in real estate; therefore, allowing individual investors to partake in the benefits of the underlying properties.

    The report further explained that REFs are traded on the Nigerian Stock Exchange (NSE), just like stocks/shares and could be purchased through stockbrokers, just like other stocks/shares.

    The report added that every REF must have a fund manager that manages the fund to ensure the best return to shareholders and a good example of real estate working for the investors.

    It said: “The holder of a REF will earn a share of the income from the real estate investment through dividends without actually having to buy, manage or finance any housing projects. It is required to distribute at least 90 per cent of their taxable income as dividend. As a result, it provides constant income for shareholders.”

    The report said there was no minimum amount to invest in a REF, adding that it was suitable for all investors.

    The report, however, regretted that REFs have not gained much popularity in terms of the numbers available and their size relative to the size of the economy.

    It explained that there were only three REFs listed on the NSE, which are Union Homes Real Estate Investment Trust, Skye Shelter Fund and UPDC Real Estate Investment Trust.

    According to the Securities and Exchange Commission, the total value of the assets of all three funds stood at N43.74billion as of January 18, 2019; this represents about 0.03 per cent of the GDP, it added.

    The research noted that the assets  recorded weak growth over the last five years, perhaps due to the slow activity in the sector.

    On why the real estate instrument seems not to be growing or gaining attention, the  FSDH report said the inadequate information on how REFs work and how investors could take advantage of the investment opportunities in them might also explain why REFs were not growing as they should.

    It stated: “FSDH Research believes REFs can be used as one of the measures to boost activity in the real estate sector. As patronage for REFs in Nigeria increases, more funds would be available to buy and develop more real estate properties. Consequently, the real estate sector would begin to experience increased activity.”