THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT March
7 th, 2013
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1. Present Conditions 2. Market Opportunities and Challenges 3.
The 3Invest Role 1. Specific opportunities for collaboration in the
RE Nigerian Industry 1. Key 3Invest Current and Future
Opportunities THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE
PROJECT The Real Estate Industry in Nigeria The Potential for
Collaboration with Nigerian SMEs Doing Business with 3invest
Slide 3
The Real Estate Industry Of Nigeria THE UK-NIGERIA SMALL AND
MEDIUM SCALE ENTERPRISE PROJECT PRESENT CONDITIONS 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
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT %
Distribution by type of Real Estate in Nigeria, 2008 NBS
Statistical Bulletin, Vetiva Research The Real Estate Industry Of
Nigeria PRESENT CONDITIONS
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT MARKET
OPPORTUNITIES NBS Economic Outlook 2012 National Real Estate
Industrial Growth 10% Annually (NBS) (2010-2012) Lagos Real Estate
Industrial Growth 22% Annually (NBS) (2003-2005) The Real Estate
Industry Of Nigeria
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World
Bank Foreign Direct Investment, USD 2012 2008 8,196,606,682 2009
8,554,840,766 2010 6,048,560,269 2011 8,841,952,784
200320042005200620072008200920102011 8,000,000,000 6,000,000,000
4,000,000,000 2,000,000,000 2012 MARKET OPPORTUNITIES The Real
Estate Industry Of Nigeria
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World
Bank, Vetiva, 2011 High Housing Demand Housing Deficit is currently
at ~16 Million Units nationally. 87% of the population is composed
of by renters. Most families living in over-crowded conditions.
MARKET OPPORTUNITIES The Real Estate Industry Of Nigeria
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World
Bank, Vetiva, 2011 Sub-par Infrastructure Paved Roads (as % of
Total Road Network. Nigeria and Other Frontier/Emerging Markets
Only about 30% of Nigerias 193,200 km total road network is paved,
relative to an average of 70% and 58% for frontier and emerging
markets respectively The Real Estate Industry Of Nigeria MARKET
CHALLENGES
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World
Bank, Vetiva, 2011 Sub-par Infrastructure Rail Network and
Transport (Nigeria and Other Frontier/Emerging Markets) Only about
30% of Nigerias 193,200 km total road network is paved, relative to
an average of 70% and 58% for frontier and emerging markets
respectively The Real Estate Industry Of Nigeria MARKET
CHALLENGES
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Pison,
2010, FINMARK Trust 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 The Real Estate Industry Of Nigeria
MARKET CHALLENGES
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Pison,
2010, FINMARK Trust Widespread Contractor Under-Performance &
Malpractice The prevalence of under- performing 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 The Real Estate Industry Of Nigeria
MARKET CHALLENGES
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
3INVEST LIMITED The Real Estate Industry Of Nigeria Company Profile
Established in 2007 Main services offered include: (Through its
3Investor and 3Invest Intelligence arms) Acquisition &
Disposition, Property Investment Consultancy Industry Advocacy
Industry Information and Intelligence Core Values:
RelationshipInnovation EthicsTrust Vision 3Invest aims to be the
leading Real Estate Company built on trust and ethics, delivering
excellent investor value. 3Invest CEO, Ruth Obih
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
3INVEST LIMITED Advocacy in Real Estate The Real Estate On Air
weekly broadcast hosted by 3Invest helps to strengthen the
industrys public platform by bringing all things Real Estate to the
public discourse. 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.
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
Capacity Building & Performance Indexing 3Invest is increasing
the industrys 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. 3INVEST LIMITED The Real Estate Industry Of
Nigeria Information & Intelligence 3Invest is Nigerias premier
source of industry information and intelligence through its online
portal- 3Investonline.com
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
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. 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.
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The Potential for Collaboration with Nigerian SMEs THE
UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT SPECIFIC
OPPORTUNITIES FOR COLLABORATION 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).
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
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
Potential for Collaboration with Nigerian SMEs SPECIFIC
OPPORTUNITIES FOR COLLABORATION
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
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.
Doing Business with 3Invest KEY 3INVEST CURRENT AND FUTURE
OPPORTUNITIES 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.
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
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.
3Invest Acquisition Advising on and enhancing property acquisition.
Real Estate Investment Connecting investors with developers and
property managers to enhance investment opportunity. Doing Business
with 3Invest SERVICE UTILIZATION 3Invest can offer collaborating
SMEs a number of key real estate services thereby becoming a
gateway for SME collaboration with Nigerian real estate companies.
KEY 3INVEST CURRENT AND FUTURE OPPORTUNITIES
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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT
Nigeria, other African property markets poised for strong growthThe
Guardian 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
monthsBusiness 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,.Lagos- based Sterling
Capital Ltd Economists expect Nigeria, already the continents 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 Africas biggest economy..Daily Nation
In Conclusion THE TIME TO COLLABORATE AND INVEST IS NOW