2016 EDITION
IS LUXURY REAL ESTATE DEAD?
BUILDING THE FUTURE
THE REFINED INVESTOR SERIES 2.0 COMING SOON
INNOVATION AND THE
EXPERIENCE THE POWER,
WORKPLACE OF THE FUTURE
PASSION AND GRACE OF POLO AT THE 2016 FINE AND COUNTRY GOLD CUP POLO TOURNAMENT
NESTOIL TOWER
Is Innovation the Antidote to a Bearish Real Estate Market?
landlords who choose service innovation over the ‘fear of unrealistic price projections.’
“Business has only two functions: marketing and innovation.” Peter Drucker Innovation occurs and continues to happen in every key industry of the Nigerian economy, from banking to telecommunications, infrastructure to health care, education, entertainment and agriculture. Real estate should be no exception. Stakeholders at the Real Estate Leaders Network hosted by Fine and Country earlier in the year, collectively identified ‘innovation’ as a major force that is overdue and that will shape the industry.
QUICK WINS. Smart investors may want to approach innovation from a quick win perspective by adopting and adapting existing technologies to access new markets using digital marketing, in addition to enhancing the buying experience and improving the integrity of real estate information. Innovation is also still lacking and required in the mortgage sector even with the NMRC, which by all accounts has had no real impact on the target market for low to mid housing.
With the housing deficit, the increasing supply of prime office, and the retail sector growth amongst other factors, the industry is at a stage where it needs to begin to innovate, and we explore below a few practical aspects of innovation in the Nigerian real estate sector.
There is an increasing opportunity in the often ignored “Rising Entrepreneurial class” which is becoming an important factor for developers of residential assets who have tended to focus on more affluent tenants and buyers. An increase in women investing in real estate was showcased at the recently concluded ‘Finer Wealth Series’ hosted by Fine and Country with support from First Bank Private Banking. This is also an area where innovation is ripe. Institutions and real estate firms need to creatively harness the opportunities in the growing population of empowered professional and entrepreneurial women climbing and wanting to stay on the property ladder.
INNOVATIVE OFFICE DESIGN AND BUILD QUALITY. The commercial segment is witnessing its highest supply of Grade A properties in the history of Nigerian Real Estate, In terms of innovation in the areas of build quality and design in prime office spaces, there are arguably a few early movers such as Nestoil Tower with its Silver LEED certification in the Mixed Development Category, the first in Africa, along with the Civic Centre Tower, and a handful of upcoming offices in the prime location across Nigeria including the iconic fast emerging Eko Atlantic. One may reflect on whether these areas of innovation are of value and whether tenants are willing to pay for them. Our experience at Fine and Country has been that most of the international investors value these level of standards, and the local market will increasingly have to adjust to adopt these global benchmarks, certainly for Grade A offices. In addition, these types of high level innovation attest to the vision of the investor, for which the rewards are usually understood to be reaped over the long term rather than in the short term. INNOVATION AND RESIDENTIAL. IS LUXURY REAL ESTATE DEAD? In the upper quarter-tile residential property segment, many continue to ask the question, is luxury residential
S A V E
. T H E
dead with premium locations including Ikoyi and Victoria Island in Lagos, and Maitama, Jabi Lakes and Asokoro, witnessing significant oversupply. Perhaps, in light of the current unique economic and regulatory challenges, innovation could be found in creatively redefining ‘luxury specifications’ to suit buyers more interested in value and consequently boost sales in prime locations. Adopting new pricing strategies or models may also help to achieve successful sales and leasing of the increasing stock of vacant properties belonging to investors who often struggle with reality. At Fine and Country, we believe that price reduction is not necessarily an antidote or a first step for selling prime real estate in slow markets. Developing in the first instance a ‘demand relevant property’, and adopting ‘appropriate pricing’ however, underpinned by verifiable market data and superior analysis are an effective but often resisted strategy. Other simple but effective pricing strategies could include flexible payment terms, investigating what is value for a coveted blue chip target client, so that an adjusted lease is negotiated to suit such a prospect, in a manner that long term value is preserved for both parties, or consider re-engineering the usually unnecessarily over priced management services to reduce the overall cost of a owning or using a property. Service innovation will also be a big area going forward, as many corporate landlords will continue to jostle to retain good quality tenants within their properties. Our recent research has seen an increase in historical leases being renewed more frequently due to ‘lease extension sweeteners’, while the projected flight to quality is slowly being witnessed and likely to happen only for the
Real estate has traditionally been poor in innovation because of the capital intensive nature and low risk appetite, but in challenging and competitive times, characterised by dwindling profits, rapidly changing demographics, global and local influence, it’s now ripe for innovation. Ultimately tough times force people as well as industries and institutions to become more innovative. A tough economy is the perfect backdrop for creativity and a change of strategy for any serious long term real estate stakeholder. Udo Maryanne Okonjo LL.M, Lond. Vice Chairman/CEO Fine & Country International W.A Member of the Oxford Real Estate Society PS - The Central Bank of Nigeria recently adopted the flex-
ible exchange rate policy. In the long run, we believe that this will bring stability and give real estate investors more confidence and peace of mind.
. D A T E
accurate, current & expert industry information
BUILDING THE FUTURE OF
REAL ESTATE IN NIGERIA nkechi.chikwendu@fineandcountryng.com
0809 600 0027
Date: Thursday, November 24, 2016.
POWERED BY
1 COOPER - MIRAMAR RESIDENCES. Ikoyi, Lagos. NOW LEASING. Price on Application.
In a cosmopolitan city such as Lagos, finding a suitable home to rent, which provides all the amenities for a good, quality lifestyle, in a location that is central to schools, hospitals, entertainment centres, financial institutions, religious centres, and at an attractive rental charge can be a herculean task. However, the growing stock of over priced rental properties which in most cases do not offer any special features has given new entrants (which addresses a growing market gap for well priced, efficiently managed and well finished prime properties) an edge over their nearest competitors. 1 Cooper- Miramar Residences is that residential development. Special care has been taken to ensure that tenants are well indulged and have no worries with the presence of; - A highly efficient facility management services which ensures maintenance of all facilities - 2 Swimming Pool (Adult and Children) - Fitness Centre - Uninterrupted Electricity Supply with 900KVA standby generators, - Water and Sewage Treatment Plants, - 2 Bedroom Service Quarters, - CCTV System,
- On-site 24-hour Facility Maintenance - 24-hour Personnel Security - Adequate Car Parking with basement parking - Fitted kitchens (microwave, heat extractor, washing machine and dryer, oven, electric cooker, store, and cabinets. The homes also come with extra large living rooms and bedrooms with modern finishings, which are particularly positioned to provide excellent lighting and ventilation.
FOR ENQUIRIES: 08096000028
Experience the power, passion and grace of polo at one of Great Britain’s greatest sporting and social venues.
POLO AT ITS BEST.
Fine & Country cordially invites you and your family to the Fine & Country Gold Cup Polo Tournament at the Dallas Burston Polo Club, near Royal Leamington Spa, on Sunday 10th July 2016, 11am-5pm. More than a sporting event, the Fine & Country Gold Cup is a great opportunity for family and friends to spend quality time together browsing the shopping village, enjoying fine food from our food court or a picnic on the lawns whilst watching exhilarating polo. Hospitality: For those of you who would like to make the day extra special, you can book a three course meal served in the Golden Jubilee Marquee, which also includes access to the club house and a day car pass. To register please contact us on 08096000027
“It is the discipline to not consume at critical times that guarantees continual wealth. Don’t eat your dinner for breakfast” --- Ibukun Awosika at the Finer Wealth Series
NEW RELEASE
NEW RELEASE
KANTI OFFICES
Victoria Island, Lagos. $600 PerM2
COMMERCIAL OFFICE FOR LEASE IN VICTORIA ISLAND.
GOOD CAPPA D’LBERTO BUILT
Kanti Offices is an impressive 62.7metres commercial development on 15 floors, strategically located on Adetokunbo Ademola Street in Victoria Island, Lagos.
Built by Cappa and D’Alberto, Kanti Towers is in close proximity to major financial institutions, offices, 5star hotels and restaurants, schools, recreational centre etc. it can also be accessed by road, water and air. It has a helipad which ensures that you land directly in your office. With a total building area of 14,704.08sqm, the lettable spaces available at Kanti Towers are 666.2sqm. For businesses that require office spaces that is easily accessible and efficient, Kanti Towers is the place for you. Split level car parking floors for over 100 cars Roof-top helipad that Can support 4 – 6 passenger Curtain wall cladded front façade, Glass walled lobby with 3 passenger lifts and glass encased staircase Glazed Italian porcelain floor tile finish on all floors and main staircase CCTV and Access Control ***Prices quoted in USD will be converted to Naira at the prevailing exchange rate”
Roof top Helipad and terrace Adequate water storage with borehole 3No. 14passenger elevators with 2 service elevators 24 hour power supply 24 hour security with modern security features and personnel FOR MORE INFORMATION ON THIS DEVELOPMENT PLEASE CONTACT: 08096000021
INTELLIGENT REAL ESTATE MARKETING
Features:
Thursday 15th Sept. 2016.
9:00am – 5:00pm
For inquiries call: 08096000027 E-mail: nkechi.chikwendu@fineandcountryng.com Visit: www.fineandcountry.ng/intelligentrealestate
FACULTY:
Real Estate, Marketing, Brand & Legal Experts
Landlords grow rich in their sleep without working, risking or economising -John Stuart Mill
FINER WEALTH SERIES - WOMEN CREATING WEALTH THROUGH REAL ESTATE In a volatile economy, real estate provides a safe hedge and store of value against inflation. In addition, the opportunities to negotiate great deals are more rampant than in a stable economy. Real estate is an integral part of our personal, professional lives, the economy and is the secret to long term wealth creation. Women can no longer afford to shy away from investing in real estate. There is a growing trend in women climbing and staying on the property ladder. This saying could not be more true as over 70 female professionals and entrepreneurs convened at the Wheatbaker hotel on Thursday, 12th of May, 2016 for the inaugural edition of “The Finer Wealth Series” An initiative of Fine and Country International W.A supported by First Bank of Nigeria Private Banking, the Finer Wealth Series with the theme “Climbing and Staying on the Real Estate ladder” was aimed at connecting and building a community of women to build their confidence for real investments through informative sessions in order to create wealth and impact lives and the nation as a whole. The key note address was presented by the chairman of First Bank of Nigeria Limited, Mrs. Ibukun Awosika who educated the guests on the “Anatomy and Mindset of Wealth Creation through Real Estate Investments”. She unearthed the value of real estate investment by sharing her personal experiences in accelerating the real estate ladder through quality investments. She stressed the need for women to embrace delayed gratifications and lifestyle adjustments by focusing less on satisfying immediate wants and developing a mindset of long-term wealth building. Real estate investment according to her is not about the individual personal preference but about the value the investment brings. You can invest anywhere in real estate and do not have to like the location of your investment as long as it yields high value. The CEO of Fine and Country, Mrs. Udo Okonjo shared on the importance, value and benefits of investing in real estate and how the involvement of women can greatly impact the economy positively in the long run. Some of the issues that currently affect real estate investors according to her include poor access to finance, limiting government policies/ regulations, and high cost of land. Some of the proposed investment strategies include; • Buying land and hold for capital appreciation • Buying wholesale and selling retail • Upgrading old buildings and sell for a premium • Developing new building for rent or sale • Investing in bank repossessed properties Other speakers included the Mrs Giwa-Amu, CEO of Brookstone Investment and properties Limited; Mrs. Nimi Akinkugbe, CEO Bestman Games Limited , Abosede Osho, MD Land of Promise Limited and Mr. Idowu Thompson, Group Head, Private Banking, First Bank of Nigeria Limited who shared experiences on the importance of real estate investments as a vehicle for long term wealth creation. All the guests left with a stronger determination to create long-term wealth by climbing and staying on the real estate ladder. The Finer Wealth Series is an ongoing series with the next edition holding in Abuja later in the year. Please contact 08096000027 for more information www.fineandcountry.ng/finerwealthseries She considers a field and buys it; from her earnings she plants a vineyard - Proverb 31:16
NEW RELEASE
Oakwood Residences - Ikoyi, Lagos. FOR SALE
Fine and Country proudly presents the brand new OAKWOOD RESIDENCES.
Owning a home is a keystone of wealth - both financial affluence and emotional security ---- Suze Orman
Early bird INVESTOR DISCOUNT from N120M on select units for a limited time.
Currently under construction, these residences located on Cooper road in Ikoyi, Lagos provides contemporary 4 Bedroom apartments and 5 bedroom penthouses with excellent build quality and finish. Some of the facilities at Oakwood Residences will include: - A fitness centre, - Swimming pool, - Spa - Standby generating set for uninterrupted power supply.
For further enquiries please contact: 08096000024
TO ADVERTISE IN THE NEXT EDITION OF REFINED MAGAZINE CALL:
You are away and about to have guests from out of town, who would get the house ready, pick them up from the airport and get a temporary chef? I need an evening dress in London and no time. Who can I trust to pick me a fab one, get a hair and makeup artist to my room in four hours? We want a private villa in Bali for our anniversary and the best spa experience. Who can plan it all? I don’t need to worry about where my dry-cleaning goes, domestic staffing and errand running! Who can manage all this for me?
Lyxvara Concierge Services
We Can, SO Relax....
22A, Admiralty Way, Lekki, Lagos 5, Quthing close, Wuse 2, Abuja
Our job... Saving you TIME and We do this with PRIDE!!!
Tel - 08033477349, 08059200120 Email - services@lyxvaraconcierge.com Website - www.lyxvaraconcierge.com
FOR SALE FROM N60MILLION
For more information please call 08096000028
This new develpment which is currently under construction and located in a serene and reserved location in Asokoro , Abuja on offer are 26 units of 1, 2 and 3 bedroom homes for sale. This development comes with facilities such as fully fitted contempoorary kitchens, indoor wall mounted air conditioners, uninterupted electricity supply, CCTV systems and secuirty personel, beautifully garden and generous car parking space.
80% SOLD OUT.
A well positioned investment grade opportunity with zero hassle and all the convenience expected from a prime residential development. On offer are a few Elegant Penthouses and only 2 units of 4 bedrooms.
E-MAIL: admin@fineandcountryng.com TEL: 08096000024
BEAT INFLATION WITH THIS VALUE PICK INVESTMENT OPPORTUNITY For Just - N37.5m
The Belvedere Lekki phase 2, Lagos
08096000028 & 08096000021
Real estate investing, even on a very small scale, remains a tried and true means of building an individual’s cash flow and wealth --Robert Kiyosaki
ASO RIDGE ESTATE
House Type: 4 Bedroom Townhouses Price (Partly Completed): N85,000,000 (Eighty Five Million Naira Only) Number of Units: 48 units Location: Mpape, Abuja Project Start Date: June 2016 Project Duration: 12 to 18 months (subject to weather conditions and sales) Description of Finishes: (Partly Completed) External: Outer façade of each house shall be 100% completed with lighting, external doors and windows. Infrastructure + all ancillary buildings and facilities fully provided. Internal: Plastering (without screeding), Conduit piping for plumbing and electrical works, and wiring. Land Location: î ˘e location is a low density area predominantly utilized by developers for developments targeted towards high-income earners. Popular residential estates and development around the location include Palm Springs Golf Estate Phase 1 & 2, Blue Opal Estate, ASO Grove Estate, Platinum Luxury Villa.
For Enquiries: 08037786857, 07037301973, 08027077771
vitaminwaterng
@vitaminwater_ng
@vitaminwaterng
NESTOIL TOWER Victoria Island, Lagos.
Some of the special features at Nestoil Towers include: Ÿ A Helipad Ÿ Provision of raised ooring and dry wall partition systems in all ofce spaces. Ÿ Provision of a covered roof terrace to host private functions. Ÿ Provision of Automated Access Control facilities Ÿ Ducted cold water chiller air conditioning system Ÿ 24hr Security and electricity Ÿ Generous car parking space
GRADE A OFFICE SPACES FOR LEASE FOR LEASING ENQUIRIES AND PRIVATE VIEWING: Tel: 08096000021 | 08096000043
Fine and Country West Africa 13, Adetokunbo Ademola Street, Victoria Island, Lagos. Tel: +234 1 271 0722 www.fineandcountry.ng @fineandcountrywestafrica
Real Estate Advisory | Branding & Marketing | Sales and Leases