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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT. March 7 th , 2013. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT. The Real Estate Industry in Nigeria. 1. Present Conditions 2. Market Opportunities and Challenges 3. The 3Invest Role

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THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

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  1. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT March 7th, 2013

  2. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT The Real Estate Industry in Nigeria 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 Potential for Collaboration with Nigerian SMEs Doing Business with 3invest

  3. PRESENT CONDITIONS The Real Estate Industry Of Nigeria 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 THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  4. PRESENT CONDITIONS The Real Estate Industry Of Nigeria % Distribution by type of Real Estate in Nigeria, 2008 NBS Statistical Bulletin, Vetiva Research THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  5. MARKET OPPORTUNITIES The Real Estate Industry Of Nigeria National Real Estate Industrial Growth 10% Annually (NBS) (2010-2012) Lagos Real Estate Industrial Growth 22% Annually (NBS) (2003-2005) NBS Economic Outlook 2012 THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  6. MARKET OPPORTUNITIES The Real Estate Industry Of Nigeria Foreign Direct Investment, USD 8,000,000,000 6,000,000,000 4,000,000,000 2,000,000,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 World Bank THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  7. MARKET OPPORTUNITIES The Real Estate Industry Of Nigeria 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. World Bank, Vetiva, 2011 THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  8. MARKET CHALLENGES The Real Estate Industry Of Nigeria Sub-par Infrastructure Only about 30% of Nigeria’s 193,200 km total road network is paved, relative to an average of 70% and 58% for frontier and emerging markets respectively Paved Roads (as % of Total Road Network. Nigeria and Other Frontier/Emerging Markets World Bank, Vetiva, 2011 THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  9. MARKET CHALLENGES The Real Estate Industry Of Nigeria Sub-par Infrastructure Only about 30% of Nigeria’s 193,200 km total road network is paved, relative to an average of 70% and 58% for frontier and emerging markets respectively Rail Network and Transport (Nigeria and Other Frontier/Emerging Markets) World Bank, Vetiva, 2011 THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  10. MARKET CHALLENGES The Real Estate Industry Of Nigeria 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 Pison, 2010, FINMARK Trust THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  11. MARKET CHALLENGES The Real Estate Industry Of Nigeria 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 Pison, 2010, FINMARK Trust THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  12. 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: Relationship Innovation Ethics Trust 3Invest CEO, Ruth Obih Vision 3Invest aims to be the leading Real Estate Company built on trust and ethics, delivering excellent investor value. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  13. 3INVEST LIMITED 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 . Advocacy in Real Estate The Real Estate On Air weekly broadcast hosted by 3Invest helps to strengthen the industry’s public platform by bringing all things Real Estate to the public discourse. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  14. 3INVEST LIMITED The Real Estate Industry Of Nigeria Capacity Building & Performance Indexing 3Invest is increasing the industry’s 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. Information & Intelligence 3Invest is Nigeria’s premier source of industry information and intelligence through its online portal- 3Investonline.com THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  15. 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. 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. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  16. SPECIFIC OPPORTUNITIES FOR COLLABORATION The Potential for Collaboration with Nigerian SMEs 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). THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  17. SPECIFIC OPPORTUNITIES FOR COLLABORATION The Potential for Collaboration with Nigerian SMEs 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 UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  18. KEY 3INVEST CURRENT AND FUTURE OPPORTUNITIES Doing Business with 3Invest 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. 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. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  19. KEY 3INVEST CURRENT AND FUTURE OPPORTUNITIES Doing Business with 3Invest 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. 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. THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  20. THE TIME TO COLLABORATE AND INVEST IS NOW In Conclusion… “Economists expect Nigeria, already the continent’s 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 Africa’s biggest economy.”….Daily Nation “Nigeria, other African property markets poised for strong growth”…The Guardian “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 “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 months”…Business Day THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT

  21. THANK YOU March 7th, 2013

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