Poised to boost the retail sector of Nigeria’s real
estate industry, a consortium of firms has floated N20 billion Real Estate Investment Trust (REIT). The newly berth
REIT, promoted by Top Services Limited,
a close-ended Real Estate Investment Trust company would be managed by a firm, Messrs First Ally Asset Management.
Speaking during the signing of the Memorandum of
Understanding (MOU), in Ikoyi, Chairman, Top Services Limited, Chief Tokunbo Omisore, said his company
spearheaded the flouting of the REIT because of the need to grow the retail
sector of real estate industry.
Chief Omisore, an architect, said the growing urbanization in Nigeria is driving the opportunities for organized retailers (Shoprite, SPAR) to enter the market. “This is a high turnover, low margin business and sensitive to rental pricing. Their business model depends on lower margins, higher turnover of everyday goods and services. Thus they are sensitive to pricing and location,” he said.
Chief Omisore added that the model has made developers
to move away from malls catering for international brands towards malls
focusing on retailers selling groceries, dry goods and other everyday items.
He also hinted that the offer price of the REIT is
N1,000 per unit. Wooing investors, he said, the REIT has a stable and regular
income distribution from diversified portfolio of real estate and real estate
related assets; long term leases with tenants and diverse corporate tenant
profile with staggered rental renewal periods, which prevent mass vacancy at
any one period and provides stable and resilient portfolio performance.
“Others are attractive valuation metrics with a portfolio
that delivers stable and consistent returns to investors; deposit of
pre-executed agreements (Deed of Assignments, Deed of Declaration of Trust-DOT)
with the custodian by the sponsor, prior to the offer; immediate refund of
already received income on the properties,” he said.
Chief Omisore assured would be investors of safety,
saying, the new REIT, will invest in retail related real estate and has
identified four malls that will constitute the initial investments including
Adeniran Ogunsanya Mall, Surulere and Apapa Mall, Lagos State, adding that the
TSL REIT will focus on retail related real estate assets that have established
occupancy levels. (Guardian)
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