An investment management outfit based in the United Arab Emirates, Aspire World Investment LLC has invested an undisclosed amount into real estate firm, DBillions PV City Nigeria Limited for property development in Lagos State’s highbrow area.
The property development deal involves Aspire World Investment taking an undisclosed equity share in DBillions. Both companies will be responsible for DBillions PV City housing project situated in Ibeju-Lekki. It would also extend into other property erection in cities across Africa and the UAE.
President of Aspire World Investment, Munir Chaudhary, said the partnership will result into sustainable growth in the Middle East and African real estate sector.
The real estate market is attracting investors due to the booming population in Nigeria. The country has a population of about 200 million which has raised concern for housing. But the revenue driven state for real estate remains the highbrow area in Lagos, such as Lekki and the Eko Atlantic City, which is being supported by the Lagos State Government.
What the deal offers: According to DBillions PV City, the agreement will birth an ultra-modern property that is equipped with sophisticated amenities, “It includes smart homes apartments, commercial spaces, state-of-the-art shopping mall, clinic, Montessori school, automated sewage system, community recreation hub, fibre-to-the-home infrastructure for high-speed internet connectivity, auto-garage and a masterpiece 16-floor skyscraper with a rooftop pool and helipad.”
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The partnership will also afford DBillions PV City the opportunity to locally organise Aspire World Expo, one of the biggest and largest Middle East investors’ platforms for local and international markets. The real estate event attracts 48 countries, 48 embassies, 48 chambers of commerce, over 4,800 investors and 48,000 attendees annually.
The problem with the project: The project is taking place in one of the most populated states in Nigeria where housing has been an issue in recent years. The population of Lagos, about 23 million, is outgrowing the available properties. While the private market has luxury properties available for accommodation, low-cost housing is fading away gradually.
The state government is currently focused on developing its high-end Eko Atlantic which is above the purchasing power of majority of the population in the state. Real estate investors and the state government are ignoring the need to make affordable property available for the growing population and instead of camping on the Island.
That’s why some property in Lekki axis are empty because investors are building outside the priority or demand of the real estate market base.
The Chief Executive Officer of Sankore Investment, Titi Adeoye, had said in a Nairametrics report that Luxury apartments are generating poor returns, as the demand has shifted to affordable housing.