Experts advocate education on estate investment

They gave the advice last week at a seminar in Lagos organised by the FSDH Asset Management Limited  which was  themed “Unlocking Investment Opportunities in the Real Estate”.In his presentation entitled: “Nature and Impact of REIT – Lessons for Nigeria from other Jurisdictions”, Founding Director and Corporate Finance Executive, Java Capital, South Africa, Mr Andrew […]

They gave the advice last week at a seminar in Lagos organised by the FSDH Asset Management Limited  which was  themed “Unlocking Investment Opportunities in the Real Estate”.
In his presentation entitled: “Nature and Impact of REIT – Lessons for Nigeria from other Jurisdictions”, Founding Director and Corporate Finance Executive, Java Capital, South Africa, Mr Andrew Brooking noted that REIT has come to be regarded as a key component of a balanced investment portfolio and are seen as an investment category separate from direct property ownership.
He analysed the growth of the South African REIT and JSE-listed real estate sector and noted that the sector has grown substantially over the years and delivered excellent total returns to investors. This was illustrated with the history of REITs and some case studies.
Mr Hakeem Ogunniran Managing Director, UACN Property Development Company Plc in his presentation on Asset Selection and Management of REITs in Nigeria, shed light on factors to consider in selecting the underlying assets of a REIT.
He explained that the success or failure of a REIT is determined by the quality of the underlying assets.
According to him, these factors include the income generating capacity of the assets, the property title, location of the asset and quality of the tenants.