NIGERIA - Real Estate & Construction
Managing Director, Elalan
Andrea Geday holds a BSc degree from Nottingham University and an MSc degree from Loughborough University. After having worked for Nicoho Limited in various positions, he co-founded El-Alan Construction Company Nigeria Ltd in 1984, of which he is currently the Managing Director. He subsequently co-founded Panther Investments Ltd in 1989, Soft Solutions Ltd in 1995, Provast Ltd in 1997, VACC Technical Ltd in 2002, and Alan Caray Technical and Logistics Ltd in 2004. In 2013, he co-founded Etiwa Ltd, a vocational technical training school, after which he went on to co-found Woodstyles Ltd in 2014.
It is extremely unique. It is a mid-market development for us, though many people would still call it luxury because it is 60% of the price of what we are selling here, if not less. That is also exciting because it is a new concept altogether. It is a residential development on top of an entertainment area. We have a swimming pool, tennis courts, gardens, basement parking for cars, and 20,000sqm of shopping mall. It will be amazing.
The apartments in the Bourdillon tower are 510sqm; they are huge. They are meant for owners and occupiers. To rent, the yields would be extremely low. When people rent homes in Nigeria, it is based on the number of bedrooms. The Lekki development is based on European sizes, and we have one-, two-, and three-bedroom apartments and significantly smaller sizes, which is great for investment. The profiles of our buyers are people buying it for their children or investing in apartments that they can later rent out. Once that development is complete, it will command the rental rate of the entire area. It is a great target for the diaspora, which has a great problem investing here because when they send money back for investment, the money just disappears. This development provides a safer channel for them to invest their money. Our partner in this project is Africa Capital Alliance, one of the biggest private equity funds in Nigeria.
We have several ideas; we are reaching out to professional associations, Nigerian doctors associations in the US and the UK, architects, churches, and others.
Anything the government provides for free does not really work, which is the case globally. It should instead facilitate. The government could provide tax breaks for people who want to set up industries; it does not have to be outright grants. It can create tax breaks for the concrete industry, for example, to produce bricks.
Consent fees are still 6 or 7%, so they have not fallen. Moreover, the government has just increased land use charges and multiplied the land use cost by 10. Taxes are on the rise as well. There is a huge disconnect between what the government wants to do and how plans are being implemented. The failure has always been in the implementation.
This is currently the best time to come in and invest. We hit rock bottom in 2017, and the only way now is up. There is demand and greater stability in the forex market, which was a huge problem before. Now, there is more visibility and stability, and demand has increased.
I disagree; the market contracted and many companies reviewed their housing policies. For example, some companies used to house their staff in Ikoyi and Victoria Island and now they give them allowances. Demand has fallen, which is why we are looking at the middle end, and it is strategic because it is with the private equity fund. This is our first venture with a private equity fund.
With the elections behind us, things will start moving quickly. 2019 looks good for us; we have a fairly great pipeline of work. We will complete our fourth project and are looking at something else in the luxury end as well.
NIGERIA - Energy & Mining
Group Managing Director, Eraskorp Nigeria Limited
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