UPDC N30bn REIT Offer Opens Today

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Tuesday, February 19, 2012

UACN Property Development Company (UPDC) will today open to the public its Real Estate Investment Trust (REIT) IPO for  public subscription today.

UPDC Plc is seeking to raise N30billion through an Initial Public Offering (IPO) of three billion units of N10 each, in the UPDC Real Estate Investment Trust (REIT).

The IPO which closes on March 28, 2013 has the authorisation of the Securities and Exchange Commission (SEC) and the approval of the Nigerian Stock Exchange (NSE) for the listing of the Units of the REIT on its bourse.

According to Mr. Larry Ettah, group CEO of UACN Plc, the funds raised from the IPO would be used to consolidate on the company’s activities and unlock more value-generating business for the company in the next few years – specifically to develop some of the property assets which the company already has and some of its projects already in the pipeline.

“We believe that this is the right time to come into the market. Of course, things have been looking up in the market and it is wise for us to come in at this time. The company is looking at some huge projects at this time, and we will use these funds to actualize the projects. We have projects in Abuja, Lagos, and all these are existing assets,” he said.

Some of the UPDC’s upcoming projects include: Metro Gardens, Lekki; Granville, G.R.A, Ikeja; Cameron Green, Ikoyi’ Victoria Mall Plaza, Victoria Island all in Lagos; Emerald Court, Apo, and Metro City, Apo in Abuja; and Emerald Court and Nigeria Airforce Foundation (NAFF) Estate in Port Harcourt, Rivers State.

Ettah added that the REIT would also allow other investors, especially those who are looking for alternatives outside the equity and bond markets to access an asset class that they can invest in and enjoy the flexibility of a ready market.

Speaking in the same vein, the MD/CEO of the company, Mr. Hakeem Ogunniran, have an opportunity to engage in the opening up of the significant underlying assets of the firm properly subjected to due diligence as to revenue flow and advantage of size and scope to build a portfolio that includes an asset class skewed for low risk, stable and easy float.

 “Investors also stand to minimise their risks as a result of property portfolio diversification as the REIT put together by UPDC Plc seeks to invest in other prime properties in Lagos, Abuja and other major cities in Nigeria to enhance its income generating property assets,” he said.

He explained that the REIT has UPDC Plc as an investor itself which should indicate the faith and commitment the group has in the REIT designed to fund the superior quality of real estate portfolio to be vested in it; apart from the credible and highly competent members of its investment committee comprising seasoned real estate experts with an unblemished track record.

He concludes, there is just too much at stake for the professional management, especially the opportunity to pioneer a value laden approach to fund the housing gap in the country.

Related News: UPDC to raise a N30bn IPO offering in Own REIT - Proshare

EDITORS NOTE - Prospectus to be published later in the week.




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