This is Nairametrics weekly roundup of major Real Estate News for the week ended May 19, 2017. To get this roundup into your email box, subscribe to our Newsletters.
- The hospitality industry was rocked with the sad news of Skye Bank’s takeover of Intercontinental Hotel, Lagos courtesy a Federal High Court judgement. This was after Skye Bank application to the Court due to several debts owed it by Milan Industries, owners of the hotel. Source We explained why Skye Bank took over the hotel here
- Alpha Mead Facilities and Management Services Limited has concluded plans to celebrate this year’s edition of the World Facility Management Day celebration to Accra, Ghana. The company’s Managing Director believes that the company’s expansion drive and the level of acceptance in Ghana justifies the decision. Source
- Embattled Ikeja Hotels has a new interim Board Chairman, Chief Anthony Idigbe, whose main aim will be to oversee the conduct of a forensic investigation into the affairs of the company and protect shareholder funds. The Securities and Exchange Commission (SEC) was responsible for making the appointment. Source
- Sun Trust has been named as the official banker for the N13 billion mortgage refinancing loans arrangement between the Federal Government and Nigeria Mortgage Refinancing Company. The agreement is expected to provide housing units for 5,635 qualified civil servants nationwide. Source
- Mixta Real Estate Plc. will use 80% or about N3.5 billion of its recently-approved N4.5 billion 17% Guaranteed Fixed Rate Bond to settle debts owed FBN Merchant Bank and Access Bank. The remaining 20% of the NSE-listed bond will be used to replicate the Residence de la Paix (RDP) housing projects, which has received huge success in Senegal. Source
- Royal Residence, a brainchild of Obika Realtors Limited has joined the ever-growing number of estates in the developing Lekki town. The 10-acre, 54-plot estate boasts basic amenities and affordable pricing. Source
- Sterling Homes has signed Foluke Daramola as the company’s official brand ambassador in a ceremony held in Lagos. The company said that the veteran actress was selected due to her abilities, which complements the ideals of the company. Source
- The hotel industry in Nigeria is currently experiencing a supply glut as 3-4 star hotels dominate the skylines of major cities such as Lagos, Abuja and Porthacourt. According to data from the CBN, investments into the local hotel market has diminished from as high as $45 million in 2007 to about $750k (98%) in under 10 years. A combination of the 2014 Ebola breakout, threat of terrorism, the economic recession and crash in government expenditure has negatively impacted on the performance of hotels. Link
This is Nairametrics weekly roundup of major Real Estate News for the week ended May 12, 2017. To get this roundup into your email box, subscribe to our Newsletters.
- The owners of The Palms Mall Ota, Ogun State, may be rethinking the wisdom behind the investment as report has it that more than 75% of the stores remain unoccupied four months after the mall was opened. The mall, which was expected to follow the path set by its sold-out Victoria Island and Ikeja predecessors could be suffering from the N1 million minimum rent charge. Source.
- Controversial business tycoon, Goodie Ibru, will retire from the Board of Directors of Capital Hotels PLC. on Tuesday 16th May 2017. This follows his retirement as Chairman of the company on 17th February 2017. He was replaced by Victor Oyolu while Robert Itawa takes over as new Executive Director. Source
- Owners of property along the Lusada-Igbesa Ogun Quangdong Free Trade Zone road in Ogun State could be in for large rewards after the state government signed a Memorandum of Understanding with Sino-African Investment Free Trade Zone Company for the construction of the four-lane, 10- kilometer road. This will increase the value of property in the area. Source
- The Lagos State government continued its relentless drive at sanitizing the environment this week with the controversial demolition of about 120 shops which were constructed under high-tension cables. The shop owners were said to have been given a 6-month notice before the exercise was carried out. Source
- The Anambra State government has entered into an agreement with Golden Tulip Hotel Group over the management of the 100-room Agulu Lake Hotel Resort., Governor Obiano lauded the agreement as “an important development in the history of the state”. Source
- Hotel Presidential is set for a new lease of life following the commitment of the Enugu State government to rehabilitate the hotel. The property which comprises of 100 suites, a swimming pool and adequate parking space was, until recently, the subject of a litigation battle between 2 parties claiming to be managers. Source
- A recent report states that Lagos hotels had an average occupancy rate of 58% and an average room rate of $78. This figures, the lowest in several years, has been attributed to the sharp rise in the exchange rate, erratic power supply and inadequate hospitality skills. Source