Economy
6th API Summit to Drive Deal Making in Kenya’s Real Estate Sector
In 2019, the 6th annual East Africa Property Investment (EAPI) Summit will facilitate a new of era of investment and development driven by market affordability, said its host, Kfir Rusin.
Hosted at the Radisson Blu Hotel on April 10 & 11, 2019, the EAPI Summit will provide a transaction focused and knowledge sharing environment for 500 senior delegates from more than 20 countries as they unpack the theme: Driving Affordability and Opportunity through the Property Value Chain.
According to Rusin, the 2019 theme is an extension of the current market cycle, macroeconomic environment and 12 months of learning and deliberations around creating transaction opportunities in Affordable Housing and the broader real estate sector.
“The reality is that the cost of real estate transactions remains too high in East Africa and this is inhibiting the growth of the sector. To restore real estate as a significant driver of sustainable growth, we have to reduce the input costs of building and deepen the available sources of funding; especially as we build the foundation for more affordable housing in Kenya and East Africa.”
Taking its lead from President Kenyatta’s affordable housing agenda; EAPI’s scope is significant and sector wide. However, Rusin points to the fact that the increasing participation of leading public and private sector institutions and bodies at #EAPI2019 is evidence that confidence is returning to the market following two years of subdued performance.
In recognition of improving market sentiment, EAPI 2019 will focus on achieving six key objectives which relate to the summit’s affordability and investment agenda and thematic focus areas. These include: design and construction; land and urban planning; finance and capital; regulatory framework and infrastructure.
As Rusin explains, “As an outcome based investment and transaction focussed conference; EAPI’S objectives are aligned to our theme and focus areas, and next year our primary objectives are to reduce the cost of construction; lower the cost of capital; unlock land for real estate development; create an enabling framework and environment for large scale property development and building the investment case for alternative asset classes and affordable housing.”
While affordable housing, and more importantly the funding and financing of these projects has generated a lot of interest and workshops in the Kenyan real estate and business market; the reality for Rusin is that EAPI’s international and regional investors and developers are results orientated and want opportunities to make deals and meet the decision makers.
“EAPI is a networking and business transaction platform, which attracts stakeholders from deep pools of capital and policy, who can interact with public sector policymakers and regulatory bodies. East Africa and Kenya has high growth potential and offers an attractive environment to do business, and we will see many new transactions announced, networking and deal making taking place next year across all sectors.”
The emphasis on bringing the public and private sector together; is a key focus for EAPI and is one of the key differentials of the summit, as Rusin explains. “The private sector is key to growth, but at this juncture, it’s critical that the public sector, industry bodies and the development finance institutions come together and drive transactions in the market and make the sector more attractive to local and international money.”
“From this perspective, we have partnered with the Kenya Property Developers Association (KPDA), Kenya Private Sector Alliance (KEPSA), Africa Union for Housing Finance (AUHF) Kenya Green Building Society (KGBS), Town and County Planners Associations of Kenya (TCPAK) and the Architectural Association of Kenya (AAK) as well as confirming participation from the International Finance Corporation (IFC). We have a number of new private and public sector companies and bodies who have indicated their sponsorship and attendance, which will be announced in 2019.”
And while real estate market has been relatively quiet in Africa over the 12-18 months, as a result of macroeconomic pressures, oversupply and lack of effective product tailoring, Rusin argues that this cooling down period has allowed for market recalibration and more attractive pricing. “In our global environment, capital is agnostic, and while Africa and Kenya’s property sector have been recalibrating, several investors, private and institutional are of the view that certain markets and asset classes provide attractive and stable yields. Next year is shaping up to be a defining year for Kenya’s real estate market, and we believe that EAPI will provide the transaction fulcrum for investors and developers across the real estate ecosystem,” said Rusin.
By Adedapo Adesanya
Three stocks further weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.12 per cent on Wednesday, April 8, with the Unlisted Security Index (NSI) down by 44.43 points to 3,930.91 points from the previous day’s 3,975.34 points, and the market capitalisation went down by N26.59 to N2.351 trillion from N2.378 trillion.
MRS Oil lost N11.00 during the session to close at N161.00 per share compared with Tuesday’s closing price of N172.00 per share, Central Securities Clearing System (CSCS) Plc dipped by N3.74 to N67.95 per unit from N71.69 per unit, and Afriland Properties Plc fell by N1.10 to sell at N15.95 per share versus N17.05 per share.
There were two gainers at the midweek trading session, led by IPWA Plc, which appreciated by 55 Kobo to N6.61 per unit from N6.06 per unit, and First Trust Mortgage Bank Plc improved its value by 4 Kobo to N2.32 per share from N2.28 per share.
Yesterday, the volume of securities rose by 620.4 per cent to 5.7 million units from 797,264 units, the value of securities increased by 25.1 per cent to N32.7 million from N26.1 million, and the number of deals climbed by 12.1 per cent to 37 deals from the preceding session’s 33 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis with 3.4 billion units sold for N8.4 billion, trailed by CSCS Plc with 57.2 million units exchanged for N3.9 billion, and Okitipupa Plc with 27.5 million units traded for N1.8 billion.
GNI Plc also finished the session as the most traded stock by volume on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by Resourcery Plc with 1.1 billion units worth N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units transacted for N1.2 billion.
By Adedapo Adesanya
Foreign Exchange (FX) demand pressure eased on the Naira on Wednesday, April 8, in the Nigerian Autonomous Foreign Exchange Market (NAFEX) after gaining N14.84 or 1.07 per cent against the greenback to quote at N1,371.82/$1 compared with the previous day’s N1,386.66/$1.
Also, the local currency appreciated against the Euro in the same market window at midweek by N1.54 to close at N1,604.07/€1 versus Tuesday’s closing rate of N1,605.61/€1, but lost N6.26 against the Pound Sterling to trade at N1,844.83/£1 versus N1,838.57/£1.
In the parallel market, the exchange rate of the Naira to the US Dollar remained unchanged yesterday at N1,410/$1, according to data sourced by Business Post.
There were indicators that the official FX market experienced a liquidity surge, which eased worries around the dominant US Dollar on Wednesday, as the Central Bank of Nigeria (CBN) revealed interbank deals rose to 220 from 71 reported the previous day.
The domestic currency has been in strong demand from foreign portfolio investors seeking to purchase OMO bills and other fixed-income instruments.
Forecasts also show that the local currency will remain relatively stable during the second quarter of the year, trading within the N1,340 to N1,430 per Dollar band on improved FX liquidity, stronger oil earnings, and rising external reserves, which have climbed above 50 billion dollars.
As for the cryptocurrency market, it fell after an initial ceasefire-fueled rally, with markets retracing Wednesday’s “ceasefire euphoria” as cracks emerge in the US-Iran truce while the Strait of Hormuz remains effectively closed.
Global risk assets face renewed pressure as geopolitical uncertainty combines with what analysts call “uncoordinated tightening” by major central banks, reinforcing higher-for-longer interest-rate expectations.
The price of Cardano (ADA) fell by 4.7 per cent to $0.2500, Ripple (XRP) slumped 3.7 per cent to $1.33, Dogecoin (DOGE) shrank by 3.5 per cent to $0.0915, Binance Coin (BNB) slipped 2.6 per cent to $600.02, Ethereum (ETH) went down by 2.5 per cent to $2,183.82, Solana (SOL) dipped 2.5 per cent to $82.24, and Bitcoin (BTC) depreciated by 1.1 per cent to $70,995.20.
However, TRON (TRX) appreciated by 0.4 per cent to $0.3173, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rallied by 0.28 per cent on Wednesday despite weak investor sentiment, as the bourse ended with 18 price gainers and 38 price losers, implying a negative market breadth index.
The growth recorded yesterday by Customs Street was influenced by the 2.11 per cent rise posted by the energy index, and the 1.79 per cent jump achieved by the banking sector.
The other sectors experienced profit-taking, with the consumer goods losing 1.07 per cent, the insurance counter down by 0.36 per cent, and the industrial goods space down by 0.19 per cent.
Universal Insurance chalked up 10.00 per cent to sell for N1.21, Omatek improved by 9.78 per cent to N2.47, VFD Group expanded by 9.71 per cent to N11.30, CWG appreciated by 9.64 per cent to N21.05, and Livestock Feeds gained 9.56 per cent to close at N7.45.
On the flip side, UPDC REIT lost 10.00 per cent to settle at N6.75, Fortis Global Insurance shed 9.92 per cent to quote at N1.18, Deap Capital depreciated by 9.85 per cent to N5.40, Chams went down by 9.47 per cent to N3.06, and Japaul declined by 8.82 per cent to N3.10.
Yesterday, the All-Share Index (ASI) went up by 562.43 points to 202,585.53 points from 202,023.10 points, and the market capitalisation advanced by N389 billion to N130.404 trillion from N130.015 trillion.
During the session, 1.0 billion stocks worth N40.6 billion exchanged hands in 52,723 deals compared with the 1.1 billion stocks valued at N40.3 billion executed in 78,006 deals a day earlier, indicating an uptick in the trading value by 0.74 per cent, and a shortfall in the trading volume and number of deals by 9.09 per cent and 32.41 per cent apiece.
The activity chart was led by Access Holdings, which sold 233.0 million units valued at N6.1 billion, Fidelity Bank exchanged 113.1 million units worth N2.2 billion, Wema Bank recorded a turnover of 103.3 million units valued at N2.7 billion, Zenith Bank transacted 60.6 million units for N6.5 billion, and Chams traded 47.5 million units worth N154.6 million.
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