Expert Sees Africa’s Real Estate Sector Evolving Amid Market Volatility
Over the last year, changes in Africa’s regulatory environments, coupled with constant swings in commodity prices as well as heightened political and economic tensions, have resulted in ongoing volatility in the continent’s real estate markets.
Despite this, fundamental demand-supply imbalances continue to present a largely attractive long-term investment outlook and thereby drive demand for real estate investment opportunities.
As a consequence, there has been significant interest from both domestic and international investors as well as some – albeit marginal – growth noted in the market during this period.
According to Head of Real Estate Finance for Africa Regions at Standard Bank, Mr Niyi Adeleye, “This growth points to an evolution in the continent’s real estate sector as well as to the urgent need for investors in this space to adapt their approach in line with this evolution and to seek out more economically sustainable ways to participate effectively in these markets.”
Given the volatility which Africa’s economies are generally subject to, more patient, long-term strategies for delivering value also need to be adopted and thorough market research, conducted as well as ‘Fit for Purpose’ solutions, applied.
A ‘one-size-fits-all’ approach does not work in Africa and it is crucial that sufficient time and resources are put into understanding the vast and varied markets that call the continent home.
The more traditional private equity funding model has begun to fall out of favour and in order to effectively navigate the current environment, investors are now increasingly taking portfolio views and evolving from short-term to more permanent real estate investment structures.
“When the size of an economy does not allow for the scale that investors are looking for, this limits the depth and size of the investments that they are able to make in that economy,” says Mr Adeleye. “We are however, now seeing a shift towards more diversified markets and the evolution of previously untapped asset classes, as well as the emergence of a new breed of investor class,” he adds.
Historically, the markets have been dominated by developers or development entities creating assets but ‘property aggregators’ are now buying properties out at reasonable levels of discount and creating investment theses for them to achieve their return objectives. This demonstrates a level of depth within the markets and, once again, speaks to the evolution thereof, which is creating a demand for new asset classes and triggering the start of a new cycle of development and acquisition, with increased sustainability built into the structure.
Real estate investment offers long term, stable return profiles and continues to represent an exciting opportunity for the deployment of local savings for broader investment and economic growth. And while African real estate investment has traditionally focused on top end, global quality opportunities aimed at attracting hard currency funding; these markets are today rapidly developing the infrastructure that connects their economies to the world and making middle and lower end real estate opportunities more attractive to investors.
“Standard Bank offers in-country presence and insight, a multi-jurisdictional view and capability across 20 African markets. As our clients evolve with the markets in which they operate, so too do we, both in supporting their aspirations, and in helping them meet the demands of this constantly changing environment,” says Mr Adeleye.
Adegoke’s Murder: Court Sentences Ife Hotelier Rahman Adedoyin to Death
By Modupe Gbadeyanka
The owner of Hilton Hotel in Ile-Ife, Osun State, Mr Rahman Adedoyin, has been sentenced to death by hanging over the death of a postgraduate student of Obafemi Awolowo University, Ile-Ife, Mr Timothy Adegoke.
Mr Adegoke was murdered in his hotel in 2021 after he lodged in the facility. His corpse was moved away from the hotel and hurriedly buried in the vicinity.
The hotelier was arrested and has arraigned in court.
On Tuesday, according to Vanguard, the Osun State Chief Judge, Justice Oyebola Ojo, found Mr Adedoyin culpable in the murder of the deceased.
The judge also found other suspects guilty in the murder of the deceased and dismissed the alibi that the hotel owner was in Abuja for many days around the time the death of the late Adegoke occurred.
But four members of the staff prosecuted alongside Mr Adedoyin were discharged and acquitted of charges against them.
The matter became known to the public after his family raised an alarm that he had been missing after he lodged in the hotel and that efforts to reach him were abortive.
Ope Banwo’s Naija Lives Matter Refocuses Priorities
By Modupe Gbadeyanka
A non-governmental organisation established by a serial entrepreneur, Dr Ope Banwo, Naija Lives Matter (NLM), is refocusing its priorities in line with its new vision.
In a statement on Tuesday, the US-based Nigerian said NLM intends to move beyond politics to focus on transforming the lives of Nigerians.
“Since 2011, the NLM organisation has consistently de-emphasised its partisan support for any specific candidate after the elections and campaigns, enabling it to concentrate on its global mandate of making Naija Lives Matter to all Nigerians, irrespective of their political affiliations.
“When Naija Lives Matter endorsed Peter Obi as our chosen candidate in August 2022, we made it clear that our partisan involvement would solely extend until the conclusion of the elections.
“Subsequently, we would focus on other aspects of our mission and goals, for which our organization was founded in 2011.
“In the past, we supported Jonathan through the GEJ project, rallied behind Buhari through the Buhari4Naija project in 2015, and even had a Moghalu4Naija project before eventually endorsing Peter Obi for the 2023 elections.
“Our commitment is not irreversibly tied to any particular politician; it lies in what we believe is in the best interest of Nigeria and its people,” he said.
With the transition, NLM now moves beyond the recent election cycle, with a current focus on organising projects to improve the lives of all Nigerians.
“Henceforth, we shall leave the legal and political affairs to lawyers and politicians and respect the courts’ decisions, whatever they may be.
“In alignment with our mandate and the previously declared engagement period for the 2023 elections, we now inform our members that Naija Lives Matter will now shift its focus towards other aspects of our charter, such as mass non-partisan mobilisation on national issues, youth empowerment training, workshops, community assistance services for the less privileged in Nigeria, and other activities.
“In light of this new direction, we will convene meetings with our state directors and cell leaders to announce additional NLM initiatives that extend beyond politics in the coming days.
“These initiatives will focus on non-partisan national mobilization, youth empowerment through training and workshops, and community-building responsibilities.
“All our threads on WhatsApp and other social media platforms will once again be dedicated to NLM as we officially conclude the Peter Obi Nation Project for the 2023 elections,” Dr Banwo noted.
Thanking members of the Peter Obi Nation Project of the NLM organisation for their tremendous efforts during the 2023 elections, he said that together they fought valiantly in a highly contested electoral process, adding that together they gave as much as they got in the very bitter partisan electioneering campaign for the organisation’s endorsed candidate, Peter Obi.
“We did not compromise, and many of us even paid the price of alienating some of our long-term friends in the heat of partisan battle.
“To this end, I am immensely proud of every individual involved in this monumental battle, and it has been an honour serving as the Chief Vawolence Officer for Naija Lives Matter side of things during this 2923 election cycle. We also offer No apologies for our passionate campaign for what we passionately believed in. It was what it was.”
He said, “To be clear, this pivot by NLM does not mean we no longer support Peter Obi. We continue to stand behind his 2023 mandate, which we believe in wholeheartedly. Nevertheless, our organization was not established solely for this election cycle.
“We have followed the same refocusing approach after the elections in 2011 and 2015. Although the intensity of this cycle was undeniable, our policy remains intact.
“We hope that our fellow compatriots engaged in the highly intense campaign for 2023 will understand and respect our decision to shift away from combative partisan politics at this juncture.
“Instead, we aim to engage the Tinubu government in a non-partisan yet critical manner, reminding them of their promises and holding them accountable. Should the courts later remove him from office, we will also celebrate. But for now, we have a country to assist in governance.”
JUST IN: DAAR Communications Chairman Raymond Dokpesi Dies
By Modupe Gbadeyanka
The Chairman of DAAR Communications, Mr Raymond Dokpesi, is dead.
The media entrepreneur reportedly died on Monday after he suffered from a stroke.
It was said that he was admitted to a hospital in Abuja and was being looked after, but he gave up the ghost today.
He was aged 71 and was survived by his wives and children.
Until his demise, Mr Dokpesi, who hailed from Edo State, was a chief of the opposition political party, the Peoples Democratic Party (PDP). He was also a close ally of the PDP’s presidential candidate in the 2023 general elections, Mr Atiku Abubakar.
He established the popular television station, Africa Independent Television (AIT), and RayPower FM stations.
Confirming this development, the family of the businessman in a statement signed by his son, Mr Raymond Dokpesi Jnr, said, “It is with deep sadness and heavy hearts that we announce the passing of High Chief Raymond Aleogho Anthony Dokpesi (Ezomo of Weppa-Wanno Kingdom) who passed away on May 29, 2023. High Chief Dokpesi was a beloved husband, father, grandfather, and friend to many. He will be deeply missed by all who knew him.
“High Chief Dokpesi was also a respected and accomplished businessman, a pioneer in the media industry, and a philanthropist who dedicated his life to the service of his country and his community. His legacy will live on through the impact he made on the lives of many.
“The Dokpesi family is grateful for the outpouring of love and support during this difficult time. We ask that you keep us in your thoughts and prayers as we mourn the loss of our patriarch. We also ask for privacy during this time as we grieve together as a family.
“The family will release further details on the funeral arrangements in due course.
“May his soul rest in peace.”
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