THE UK-NIGERIA SMALL
AND MEDIUM SCALE
ENTERPRISE PROJECT
March 7th, 2013
THE UK-NIGERIA SMALL AND
MEDIUM SCALE ENTERPRISE PROJECT
The Real Estate
Industry in
Nigeria
1. Present Conditions
2. Market Opportunities and Challenges
3. The 3Invest Role
The Potential for
Collaboration with
Nigerian SMEs
1. Specific opportunities for collaboration in the RE Nigerian
Industry
Doing
Business
with 3invest
1. Key 3Invest Current and Future Opportunities
PRESENT CONDITIONS
The Real Estate Industry Of Nigeria
Economic Profile
of Nigeria
GDP:
USD 272.6 Billion (2012)
GDP/capita:
USD 2700.00 (2012)
Size of RE Industry
~ 4 Billion USD
NBS Economic Outlook 2012
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
PRESENT CONDITIONS
The Real Estate Industry Of Nigeria
0.50% 1.60%
4.60%
% Distribution by type of Real Estate in Nigeria, 2008
NBS Statistical Bulletin, Vetiva Research
Residential
Commercial
Industrial
Others
93.30%
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET OPPORTUNITIES
The Real Estate Industry Of Nigeria
National Real Estate
Industrial Growth
10% Annually (NBS)
(2010-2012)
Lagos Real Estate
Industrial Growth
22% Annually (NBS)
(2003-2005)
NBS Economic Outlook 2012
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET OPPORTUNITIES
The Real Estate Industry Of Nigeria
Foreign Direct
Investment, USD
2008
8,196,606,682
2009
8,554,840,766
2010
6,048,560,269
2011
8,841,952,784
8,000,000,000
6,000,000,000
4,000,000,000
2,000,000,000
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
World Bank
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET OPPORTUNITIES
The Real Estate Industry Of Nigeria
Others,
0.40%
High Housing Demand
Whole Building,
27.20%
Flat,
5.80%
Housing Deficit is
currently at ~16 Million
Units nationally.
87% of the population
is composed of by
renters.
Single Room,
66.30%
Most families living in
over-crowded
conditions.
World Bank, Vetiva, 2011
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET CHALLENGES
The Real Estate Industry Of Nigeria
Sub-par Infrastructure
Only about 30% of
Nigeria’s 193,200 km
total road network is
paved, relative to an
average of 70% and
58% for frontier and
emerging markets
respectively
Paved Roads (as % of Total Road Network. Nigeria and Other Frontier/Emerging Markets
World Bank, Vetiva, 2011
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET CHALLENGES
The Real Estate Industry Of Nigeria
Sub-par Infrastructure
Only about 30% of
Nigeria’s 193,200 km
total road network is
paved, relative to an
average of 70% and
58% for frontier and
emerging markets
respectively
Rail Network and Transport (Nigeria and Other Frontier/Emerging Markets)
World Bank, Vetiva, 2011
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET CHALLENGES
The Real Estate Industry Of Nigeria
Poor Financing
The Federal Mortgage Bank of
Nigeria has since its inception
grossly underperformed due to
political instability, administrative
problems and uncoordinated policies
(Nubi) with negative impacts on
demand.
Access to Financing by Income Level
Pison, 2010, FINMARK Trust
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
MARKET CHALLENGES
The Real Estate Industry Of Nigeria
Widespread Contractor
Under-Performance & Malpractice
The prevalence of underperforming contractors and
inadequacy of skill will often
drive up the cost of development
and increase the risk of
investment in the industry.
Common malpractice found in
the industry include fraudulent
pricing and contract breach.
Ikeja Mall Rendenring
Pison, 2010, FINMARK Trust
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
3INVEST LIMITED
The Real Estate Industry Of Nigeria
Company Profile
Established in 2007
3Invest CEO, Ruth Obih
Vision
3Invest aims to be the leading Real
Estate Company built on trust and
ethics, delivering excellent investor
value.
Main services offered include:
(Through its 3Investor and 3Invest
Intelligence arms)
Acquisition & Disposition,
Property Investment Consultancy
Industry Advocacy
Industry Information and Intelligence
Core Values:
Relationship
Ethics
Innovation
Trust
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
3INVEST LIMITED
The Real Estate Industry Of Nigeria
Promoting & Enhancing Investment
3Invest provides an enhanced
environment towards acquisition,
disposition and investment in the most
prized real estate for members of its
3Investor network .
Advocacy in Real Estate
The Real Estate On Air weekly
broadcast hosted by 3Invest helps to
strengthen the industry’s public
platform by bringing all things Real
Estate to the public discourse.
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
3INVEST LIMITED
The Real Estate Industry Of Nigeria
Capacity Building & Performance Indexing
3Invest is increasing the industry’s capacity to
perform through Real Estate Unite- a key
conference gathering industry professionals for
networking, workshops and recognition based
on performance through the Real Estate Unite
Awards.
Information & Intelligence
3Invest is Nigeria’s premier source
of industry information and
intelligence through its online
portal- 3Investonline.com
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
3INVEST LIMITED
The Real Estate Industry Of Nigeria
Enhancing and Enabling Seamless Acquisition
and Disposition
3Invest through its bi-annual Property Buyers’
Forum brings buyers and sellers together and
enhances decision making on a vast array of
properties.
3Invest also offers assistance to
investors in the Diaspora who
may find it difficult to navigate
buying and investing in the
Nigerian real estate market.
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
SPECIFIC OPPORTUNITIES FOR COLLABORATION
The Potential for Collaboration with Nigerian SMEs
Collaboration through Direct Industry
Participation
Manufacturing:
Major cement manufacturing plants (Obajana &
Ewekoro) still operating below capacity, with at
least 30% of national consumption imported.
Steel not widely used as building material.
Development:
Housing, retail and office demand still far ahead
of supply. Huge housing deficit, specifically
affordable housing (16 million units).
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
SPECIFIC OPPORTUNITIES FOR COLLABORATION
The Potential for Collaboration with Nigerian SMEs
Collaboration through Semi-Direct Industry
Participation
Funding:
Given the current atmosphere of tighter debt
constraints equity has become even more
crucial to the industry. Collaboration can take
the form of Direct Investment in the highly
profitable real estate industry of Nigeria.
Technical Assistance:
3Invest and other organizations gain directly
from improved industry performance through
improved artisan skill and capacity. Technical
assistance towards this can be by creating
artisan training workshops.
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
KEY 3INVEST CURRENT AND FUTURE
OPPORTUNITIES
Doing Business with 3Invest
SPONSORSHIP
3Invest offers the opportunity for
collaboration through event and
project sponsorship.
PARTNERING
There are also opportunities for direct
participation in projects through
partnering in planning and execution
of some 3Invest programs.
3Invest Intelligence
Media and advocacy arm of 3Invest.
3Investonline.com
Real estate information portal.
Real Estate On Air
Advocacy and public discourse in real estate
through radio media.
Real Estate Unite
Capacity building, networking and performance
indexing through a conference and award
conferring.
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
KEY 3INVEST CURRENT AND FUTURE
OPPORTUNITIES
Doing Business with 3Invest
Property Buyers Forum
Enhancing property buying and selling, as well as
investment.
US Property Tour
Bringing investors in the Diaspora the
opportunity for investment in Nigerian real
estate.
SERVICE UTILIZATION
3Invest can offer collaborating
SMEs a number of key real estate
services thereby becoming a gateway
for SME collaboration with Nigerian
3Invest Acquisition
real estate companies.
Advising on and enhancing property acquisition.
Real Estate Investment
Connecting investors with developers and
property managers to enhance investment
opportunity.
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
THE TIME TO COLLABORATE AND INVEST IS NOW
In Conclusion…
“Nigeria, other African
property markets poised for
strong growth”…The
Guardian
“Economists expect Nigeria, already the continent’s
most populous nation and largest oil producer, to
overtake South Africa in terms of gross domestic
product (GDP) over the next several years,
technically making it Africa’s biggest
economy.”….Daily Nation
“A United States -based firm, Amira Real
Estate Investments, has entered the
Nigerian real estate market with the aim
of delivering a 23-storey structure of
Premier Condo Units valued at
$145million (about N22.62billion) within
24 months”…Business Day
“Investors want to take advantage
of the property market that has
survived a slump, with properties
gaining in key commercial areas of
Lagos, the capital Abuja and Port
Harcourt by as much as 40 percent
in the past one year,”….Lagosbased Sterling Capital Ltd
THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
THANK YOU
March 7th, 2013