UACN Property Development Company Plc has announced that it raised N16bn through its rights issue, offering to its existing shareholders with 15,961,574,145 units at N1 per share, as it prepares for unbundling ahead as a strategic growth plan.
The company notes that the offer, which was oversubscribed, indicates investor confidence in the company’s future growth prospects, adding that proceeds from the Rights Issues have been used to improve UPDC’s capital structure and position the company for growth.
Deborah Nicol-Omeruah, deputy CEO, UPDC, says the company retains unparalleled market knowledge and track record, more than N20bn in assets, strong governance and an excellent facilities management business. The team at UPDC is focused on leveraging these strengths to drive stakeholder value creation”.
“We are grateful for the confidence exhibited by our loyal shareholders and continued patronage from our customers.”
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Folakemi Fadahunsi, the finance director of UPDC notes, “It is an exciting time to be a UPDC shareholder. The Rights Issue has resulted in improved cash flow for UPDC, as finance cost has reduced from N4.8bn in 2018 to N700m. We will continue to reposition our property portfolio by actively selling lower-yielding assets to provide further liquidity to fund new developments”.
The next stage of UPDC’s strategic initiatives is its upcoming unbundling from UAC which will allow the platform to operate as an independent group, and UPDC looks to a future with greater flexibility and a solid foundation for growth, Fadahunsi states.
According to Fadahunsi, the company’s simplified structure, strengthened capital base, technology-driven approach, expert management team, and well-defined development strategy provides investors considerable growth potential and opportunities for generating attractive long term returns in the Nigerian real estate sector.
“UPDC is set on a path to profitability, with an aggressive development strategy which will see the commencement of its first new project under its new management in Q4 2020. The proposed residential development, known as Festival Flats is designed to be a 30 unit block of 2-bedroom apartments, targeted at the local middle-income market.
“Located next to UPDC’s popular Festival Complex in Festac which currently includes the Festival Mall, Festival Hotel, and The Residences Apartments, the proposed new development will offer buyers a lifestyle where they can live, work, and play at their doorstep,” Fadahunsi said.
UPDC is Nigeria’s foremost real estate development firm with a market-leading facilities management business. UPDC boasts of a management team with deep experience of successful operations in the Nigerian real estate sector across multiple segments including residential, commercial, hospitality, and retail.
