Practitioners in the real estate sector have outlined ways by which developers can build trust and confidence in investors so they can continue to invest in the sector despite the state of the economy.
The operators explained that tapping the capital market, building strong relationships with banks and keeping accurate records with investors will enable the developers to retain the trust of the investors.
“Most real estate companies are tapping the capital market. You can see some issuing commercial papers and bonds. These are ways they can finance their project so that even if investors don’t pay up as fast as possible, they can close the gap,” Dayo Adenuni, CFO, Assethaus, a property development and management company, said
Adenuni who spoke Assethaus investors meeting in Lagos, added, “Some developers have also built a strong relationship with their banks. For us at Assethaus, we have private financiers who also assist the money we get from investors to keep the project going. We also manage our cash flow efficiently to ensure we deliver most of our properties at the appropriate time.”
He explained further that giving investors accurate records of their investment like monthly reports and bringing to their knowledge about the growth, challenges and opportunities in the company also helps to bring them closer.
The CFO revealed that Assethaus was lowering the entry barrier for investors and expanding investment for the middle class with their building and payment structures.
“We are reducing entry barriers for investors. In Nigeria, you find out that when you see houses, it looks like it’s basically for rich people but we have been able to come out with a structure and payment plan where the working class and middle class can acquire apartments that generate cash flow for them on a monthly basis with our shortlet apartment. This has reduced the entry barrier for them and made sure the payment plan works with the level of their salary.
Adebolu Mayowa, CEO of Assethaus, speaking on the company’s outlook for 2024, said the company plans to finish its Crestville Apartment 2 and also triple investors’ return while having a long-term plan of investing in multi-family units.
“Right now, we are situated around short hospitality. We are looking at investing in multi-family units. We are also looking at investing in vertical businesses that can help improve our company,” he said.
