Away from the high-end market where the upper-class home buyers and investors were its target, the UAC Property Development Company (UPDC) Plc has evolved a new development strategy that focuses on the middle class, Diaspora Nigerians and institutional investors.
Before its short spell of business downturn during which it recorded losses in almost all spheres of its operations, UPDC was a leading light in the high end residential and commercial real estate development in Nigeria with the first Real Estate Investment Trusts (REITs) in the country.
Interestingly, the company has overcome the odds and returned to profitability through the acquisition of majority stake in the company by Custodian Investment Plc and more through perseverance by its management team led by Odunayo Ojo, a seasoned professional and management expert.
At a media parley in Lagos at the weekend, Ojo disclosed that in pursuit of the new development strategy and the focus on Nigeria Diaspora investors, the company went on a road show in London where it unveiled its latest project called Brompton City, describing that outing as very successful.
Brompton City is a 30-hectare mixed use development on Ogombo Road, right off the Lekki-Epe Expressway which the company is developing in phases over the next eight to 10 years with phase 1 already ongoing
According to Bidemi Fadayomi, the company’s executive director, developments and projects, Brompton City’s timeline is 37 months. It started in August 2023 and is expected to be completed in August 2026.
She revealed that they have another on-going development called The Hampshire—a 5-hectare mixed use development on Cardinal Anthony Olubunmi Okogie Road (formerly Monastery Road) in Sangotedo.
“This project consists of 3 zones, including low density residential zone; high density residential zone and commercial zone. It has timeline of 25 months having started in January 2023 and is expected to be completed in February 2025,” she said, listing active living; connected communities, and eco-neighborhood as their development principles.
Ojo noted that UPDC is a going name with a reputation that place it way ahead of competition, adding that with over 1,000 residential units developed; 47 estates under management; over 350,000 square metres land bank; more than 25 years of experience; one large retail mall; 471 room conference hotel; 120-bed student hostel and N19 billion in total assets, the company’s integrity is clearly unimpeachable.
He disclosed that the company had an impressive full year 2023 performance arising from their new strategy and other performance indicators. “Besides property development and facility management, UPDC has commenced advisory services for revenue diversification,” he said.
Continuing, he said, “we offer customer-centric service to ensure sustenance of brand excellence, thus positioning us to broaden our clientele base from referrals; we also engage strategic partnerships in terms of firm relationships with key stakeholders to ensure seamless execution of our mandates.”
Ojo had a piece of good news for the company’s shareholders. According to him, though the group’s revenue dipped marginally by 9 percent, the gross profit grew by 20 percent year-on-year while the finance income grew by 177 percent, resulting from placement of excess cash generated particularly from plot sales in The Hampshire and Pinnock Prime Estate.
He added that the group recorded N5.343 billion revenue in the year under review with property development and sales accounting for 69 percent of the revenue followed by hospitality which accounted for 16 percent. Advisory services and facilities management accounted for 8 percent and 7 percent of the revenue respectively.
