REAL ESTATE NEWS UPDATE| JULY 17TH 2017 #3inews

Tetramanor Garden Estate; N600m Project Unfolded

Tetramanor Garden Estate is a project promoted by Messrs Tetramanor Limited (TM) and located on 2,600 square metre land at Lagos Mainland area of the Costain-Iponri axis of Surulere, behind LeadWay Assurance, and within Olaleye New Town.

With little regards to the effect of the economic recession in the real estate sector, the private firm has unfolded new homes worth about N600 million to address the shortfall in middle-income housing.

The project which began in March 2016 and was completed within 15-months period comprises of 14-units of multi family mix of townhouses, eight-Terrace houses, four condominiums and two-penthouses construction.. Among the features are common areas of bush-bar for hanging out and a garden for relaxation, security, backup power, treated water supply, landscaping, cleaning of common areas and waste disposal.

The estate consists of eight units of townhouse which has four bedrooms en-suite with maid’s rooms, and private backyard priced at N56.7 million; two units of maisonette/penthouse which has four bedrooms en-suite, a study, and penthouse garden (N54.5million); and four units of condominium, which has three bedrooms en-suite, master’s bedroom with walk-in closet, and large kitchens N36.3million price tag. About 11 of the 14 units have already been sold.

The developer says the units are fully completed to high standards, tastefully finished with POP ceilings, vitrified and granite tiles, vintage PVC French windows for soundproofing, high-quality kitchen cabinets and wardrobes, and sanitary fittings.

The condominiums consist four units of three bedrooms, master bedroom with walk-in-closet, large kitchen, the townhouses have eight units of four bedrooms with boys’ quarters, master bedroom with walk-in closet, and well-equipped kitchen.

The two units of Maisonette/penthouse are designed to have four bedrooms, master bedroom with walk-in closets, master bedroom with study in the penthouse and luxurious bathrooms.

All the house types are aesthetically appealing, designed with modern spaces and easy to customize to each homeowner’s style and taste. A team of indigenous young men affiliated to Baron Architects and 225mm construct executed the project.

Speaking at the official commissioning of the estate, witnessed by the subscribers, project partners, investors and the media, the Business/Project Manager of the company, Mr. John Beecroft said his company has put in place flexible payment plan to ease the process of home acquisition.

He said the company next project, which be flagged-off next year will be known as TM Meadows. The 45 unit multi family estate is projected to cost over N1.5billion for multifamily buildings and will be sited at Ebute-Metta axis in Lagos Mainland council.

He said: “We are still committed to developing more projects on the mainland to alleviate the housing shortfall for our target market and looking to applying all relevant lessons learnt from our previous projects towards making TM Meadows a momentous success”, he said.

Despite the current economic challenges, the company hopes to deliver TM Meadows with the same quality as TM Gardens, but at a much lower price – between N25m and N45m depending on the type of unit.

The company’s Finance Director, Mr. Chuka Atuchukwu said the development was embarked upon to boost its profile.
Culled From:
The guardian

Sand filling Lagos lagoon; Cause of massive flooding – Ex-Surveyor-General

“Former Surveyor-General of the Federation Prof. Peter Nwilo has blamed the massive Lagos flooding on the construction and sand-filling works around the Lagoon and waterfronts in the state.”- PM News

According to Nwilo, “to stop the incessant flooding of Victoria Island, Lekki, Ikoyi and adjoining areas, the Lagos State Government have to stop construction and all sand filling works around Lagoon and waterfronts”.

This he said in an interview in Lagos while reacting to the massive flooding in the state, especially around Lekki, Victoria Island, Ajah, Ikoyi and Lagos Island, following torrential rainfall on Saturday.

According to him, this is the first time the Lagos Lagoon water level is rising. “I do not think the water level of the Lagoon has risen like this before in the state. Look around you, Lagos Lagoon and all waterfronts in the state are being sand-filled for the development of estates and this is being done without proper Environmental Impact Assessment (EIA) on consequences of such development on the environment”.

Nwilo, who is also a lecturer at the Department of Surveying and Informatics, University of Lagos, using his professional expertise to analyse the cause of the flooding said, “The natural canal is being blocked all around the state and when this happens, the water stays with us and that is the flooding we are experiencing. We can work on the other causes of the flooding later, but for now, and filling of Lagos Lagoon and waterfronts should stop

Also speaking, Prof. Sylvester Egwu, an environmentalist, also expressed concern about the happenings in Ajah, Lekki axis and its environs.

“These areas have become tourist sites for flooding. Ajah area is horrible. VGC, Ikate and Jakande are in a mess. Everywhere is water-logged.

“We cannot even come out of our houses, for those of us that water has not overtaken our entire houses. Besides being climate change situation, all drainage systems in the area are blocked, the majority of them by illegal structures. Egwu called for the removal of all the illegal structures on drainage right-of-way and make the gutters flow by removing the refuse blocking the free flow of water.

Mr Victor Imvebore, the Chairman of Nigerian Environmental Society, Lagos Island Chapter, while giving is own opinion said that what was happening at Lekki, Ajah, Victoria Island did not come as a surprise to environmentalists.

“Environment lovers have raised alarm severally, warned the government and private individuals, especially estate developers and contractors on the consequences of blocking and building on wetlands.

Those areas are to serve as buffer zones for excess water from the Ocean, Lagoon, seas and rivers. “Whenever non-governmental organisations on environment, foundations and activists demand EIAs on major projects, they become enemies of the government. “We have always known and warn that projects built indiscriminately in those areas prone to flooding are disasters waiting to happen.

“Wetlands are pooling areas for water. We build on flood plain areas and complain when our houses are flooded,’’ he said.

Culled fromPM News

 

FG will soon rehabilitate the collapsed bridge in Niger state – Osinbajo

According to Nigerian Pilot, acting President Yemi Osinbajo, on Monday, said the Federal Government will soon rehabilitate the collapsed bridge in Niger state. The acting president, alongside the Minister of Power, Works and Housing, inspected the collapsed bridge and advised motorists plying the road to exercise patience as plans were already in motion to rehabilitate the structure.

The bridge along the road had collapsed on June 11, because of the flood at Tatabu village in Mokwa Local Government Area of Niger state. Osinbajo, who described the incident as unfortunate, said that the construction of an alternative bridge would be completed within 14 days to ease movement of traders and goods.

“We have come here to look at the bridge because this road is very important to us as a government and this axis is very important to motorists and the country. The Federal Government will make sure that the collapsed bridges along Tegina/Mokwa and Jebba/Mokwa roads are done immediately and all repairs on the roads are done. “We commend your patience and want you to continue to be patient with us, very shortly, the bridge will be completed within a fourth night,’’ he said.

The Acting President stated that adequate personnel had been mobilised to ensure quick completion of the collapsed bridges.
“We are working on the two bridges as emergency and everybody is fully mobilised; government is committed to the maintenance of all roads across the country,’’ he added.
He, however, cautioned motorists against loading their vehicles above the approved road standard of 35 tonnes per vehicle.
Similarly, Gov. Abubakar Bello of Niger commended motorists for their patience and appealed to the Federal Government to rehabilitate all federal roads in the state to reduce sufferings of road users.

Culled fromNigerian Pilot

Lagos State Government Seals N3.1b Elephant Cement House deal

The Lagos state government has acquired the famous Elephant Cement House, a multi-storey office complex situated at Ikeja Central Business District at a cost of N3.1 billion. The building was home to Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company and a subsidiary of Lafarge Holcim, owners of the commercial property.

Tenants in the flagship property include Lagos government agencies, corporate organisations and leading players in the banking industry, UBA and Stanbic IBTC.

As at the time of the report, the state has taken possession of the edifice and renamed it, Lagos Revenue House.  The facility situated in a land area of 10,307.97 square metres with a car park of4, 687 square metres. The total built area is about 1,700 square metres while its green area is about 800 square metres.

The new Lagos Revenue House has eight floors, has 4 (four) wings labelled A, B, C and D. Wing A, B and C have 7 (seven) floors while Wing D (inner Rotunda) has 8 (eight) floors (a Penthouse). Architectural wings A and C are bilaterally symmetrical with the same features.

Essentially, the facility has office spaces of 1,640 square metres per floor and 11,450 square metres office spaces. The designated guest car park accommodates 220 cars. Other features include a conference room and banking hall.

The deal, The Guardian learnt was wrapped up by Babatunde Fashola administration and was shrouded in secrecy. At a point, it became controversial before the latest admission by the authorities. Efforts to get more information from government officials proved abortive.

But the Chief Executive Officer, Lafarge Africa, Michel Puchercos, said the disposal is part of the company’s turnaround and divestment plan. “Our main divestment relates to the disposal of the Elephant Cement House to the Lagos State Government for N3.1 billion, generating a capital gain of N1.2 billion”. This is also according to a financial statement submitted to the Nigerian Stock Exchange (NSE) for the Q1 2017.

Meanwhile, the State’s Ministry of Works and Infrastructure on behalf of Lagos State Government has launched a search for competent facility management service providers/contractors to manage the public asset. This is also in a bid to pursue its infrastructural assets maintenance and management plan, which is set to embrace the culture of facility management to ensure professional maintenance of the State Public Assets.”

The tender is seeking contractors or consortium for the major architectural/structural maintenance and repairs; mechanical/ electrical maintenance and repairs; replacement of fixtures and fittings; power management; sewage and water management; landscaping; painting; pest control and fumigation as well as general routine maintenance work.
Culled from: The guardian

Abuja housing show – Dogara, governors, others to attend

The 11th Abuja Housing Show scheduled at the International Conference Centre Abuja to hold week is focusing on providing practical solutions to housing problems in Africa. The exhibition is organized by FESADEB Media Group promoters of Housing Development Programme on AIT, NTA and Housing time on Raypower. The forum is branded as the largest housing expo in West Africa that provides opportunities for corporate organisations and individuals to explore new options for housing and infrastructure financing.

This year’s event is expected to have over 200 local and international companies that will be participating in the housing show, the forum provides opportunities to meet top grade professionals, builders, architects, town planners, quantity surveyors, real estate developers, home and infrastructure financiers, interior decorators, civil and structural engineers, policy makers in the built environment among others.

The expo further provides an avenue for policy makers and stakeholders in the built environment to interact and proffer solutions to the myriads of problems affecting the Nigerian Housing sector.

The housing shown is also a market place to present new products, technology and services in housing and infrastructural development. It, therefore, provides a platform to buy and sell directly to end users and dealers at discounted rates.

Babatunde Raji Fashola; minister of Power, Works and Housing, is billed to deliver keynote address while foreign and indigenous experts will set the ball rolling with their vast wealth of experience in the housing finance sector. Other speakers include Deputy Governor, FSS CBN, Dr Joseph Nnanna; Senior Housing Finance Specialist, World Bank, Simon Walley; Executive Director and founder, Centre for Affordable Housing Finance in Africa (CAHF) South Africa, Kecia Rust and MD, Federal Mortgage Bank of Nigeria, Ahmed Dangiwa.

The event will be declared open by the Speaker, Federal House of Representatives, Yakubu Dogara, and Chaired by Chief John Oyegun, Chairman, All Progressives Congress.

Discourse will focus primarily on innovation in housing and infrastructure financing, access to decent and affordable housing, mortgage financing, addressing challenges of developers, ensuring standard in the built sector among others.

Others to grace the occasion are state governors, lawmakers, over 100 investors from over 30 countries, 400 exhibitors and Commissioners for Housing, Works, Lands & Survey from all the states of the federation.

Among the governors expected at the show are the Governors of Rivers, Ogun, Lagos, Yobe, Bauchi, Sokoto, Anambra, Kwara and Plateau states.
Culled from: The Guardian

Stakeholders Task SON to Create Specialized department for building materials

The Standard Organisation of Nigeria (SON) has been urged by stake holders in the built industry to create specialised department for building

“There is an imminent need to create a specialized department for building”, this was the stands taken by the Building Collapse Prevention Guild, BCPG, a non-governmental advocacy body championing prevention of building collapses in the country has urged the Standards Organisation of Nigeria, SON. The guild has also raised the alarm that more incidents of building collapse were imminent in the country except urgent necessary actions are taken to arrest factors responsible for the collapse of buildings.

The guest speaker and managing director of Vasons Concept Consultants Ltd, Victor Oyenuga, speaking at the BCGP forum in Ikorodu, Lagos, organised by Ikorodu Cell of BCPG for stakeholders in construction industry, last weekend, said that the steel quality in terms of strength and sizes should not be compromised as steel remained one of the major causes of building collapse in Nigeria. Oyenuga who spoke on “The Importance of Quality Flat Sheets and Steel Reinforcement Materials in the Construction Industry”, said “SON should create a specialized department for building materials.

He also added that steel manufacturers must accompany every consignment leaving the mills with a certificate specifying the steel strength, diameters and length and that COREN and CORBON must intensify their monitoring role for both engineering and building projects. The regulatory bodies can enforce that steel materials found on the site be tested and appropriate action be taken”.

On his part, the Director General of Standards Organisation of Nigeria, SON, Mr Osita Aboloma, listed some other factors that can cause building collapses as faulty design and construction, foundation failures, negligence, quackery and some natural occurrences. He said, “construction from faulty designs as a result of defective architectural and engineering drawings, coupled with inconclusive feasibility studies, soil and site investigations, poor design details, errors, omissions and inaccurate data coupled with contractors failing to carry out construction in accordance with specifications are other factors that cause/contributes to building collapse.” Aboloma who was represented by Engr. Oyewopo Abdulrazaq said that in achieving the consistent characteristic standard, the SON engages stakeholders in various sectors of the economy in the development of relevant standards.

The President of the Guild, Mr. Kunle Awobodu, a builder, and vice president, Nigerian Institute of Building, NIOB, blamed the recurrent incidents of building collapse in the country on sub standard steel reinforcement materials used by those engaged in construction of buildings across Nigeria, pointing out that standards of building projects need to be controlled right from production rather than relying on taking samples to laboratory for testing. According to him, “Rising cost of production due to naira depreciation has turned metal scraps to the major component of steel production instead of imported billets. A ratio 70 percent of ore to 30 percent of scrap is permitted in steel production, but the use of 100 percent scrap for steel production is worrisome, especially when certain scraps are not ideal for producing construction steel bars”.

Awobodu while expressing gratitude to the leader of Ikorodu Cell of BCPG for organising the stakeholders’ forum, said there is the need for government to provide basic amenities as a way of supporting manufacturing companies in the country, disclosed that Ikorodu has the highest concentration of steel rolling mills in Nigeria, pointing out that out of the 41 rolling mills in Nigeria, about 34 are working to production capacity of which 15 are in the Ikorodu area. “But here in Ikorodu, they have infrastructure challenges such as road, security, power for production among others
Culled from: The Vanguard

Huge new shopping mall opens in Mozambique’s Pemba


R-L: Gerhard van der Westhuizen, project manager of Atterbury Property Development, and Tagir Carimo, mayor of the City of Pemba.

Property developer and investor Atterbury has completed the first-phase development of its $20m Pemba Shopping venture in Mozambique’s north-eastern port city of Pemba, the capital city of the Cabo Delgado province.

Atterbury has shifted its focus from developing in South Africa for now to developing in the rest of Africa and abroad. Pemba Shopping is a joint venture between Atterbury and TradeHold Africa. It has created an 8,000m2 shopping centre. Pemba Shopping was officially opened to the public on 29 June.

The new Pemba Shopping is one of three shopping centres that Atterbury is delivering in Africa this year. Atterbury developed the 18,500m2 modern Kumasi City Mall for its owners, Delico Kumasi, which opened in Ghana in April. In partnership with Tradehold, Atterbury is also developing the 27,000m2 Dunes Mall in Walvis Bay, Namibia, which is scheduled to open in October this year.

Pemba Shopping is anchored by a 3,500m2 Shoprite supermarket, the first of its kind in the city. OK Furniture and Pep also opened at the centre. In addition, it features over 4,000m2 of retail space in about 20 stores, incorporating a food court to be opened in the near future. The potential of a filling station will add even more convenience to the centre.

Designed by architects Aevitas Group, the mall has 250 parking bays, security and guaranteed 24/7 power, including reserve generators.

Cobus van Heerden of Atterbury Property Development said: “The city of Pemba has enormous economic potential and we are proud to invest in its future with this key development. Doing business in Mozambique, and in Pemba specifically, has been an immensely positive experience.”

Atterbury Asset Management will manage the mall. Pemba Shopping is currently over 60% let.

Source: BDpro

Research reveals positive development in the African tourism sector

According to various stakeholders in attendance at WTM Africa 2017, the continued growth of African tourist arrivals coupled with key performance indicators such as increased airlift and hotel development, are all reasons to invest in the travel economy within Africa.
Through the partnership between World Tourism Market (WTM) Africa and Euromonitor International, research divulged at the exhibition showed that key performance indicators revealed positive development in the travel sector of Africa. Christi Tawii, the research analyst with Euromonitor International, spoke at WTM Africa 2017, unveiling that inbound arrivals in sub-Saharan Africa between 2011 and 2016 showed steep growth, moving from just below 21,000 arrivals in 2011 to over 24,000 in 2016.

Travel trends

Tawii further outlined current travel trends that Euromonitor International has identified throughout African countries including the increased focus on domestic tourism. Tawii explained that both the number of domestic trips has increased since 2011 and that the average domestic expenditure has grown alongside this.

Speaking at WTM Africa 2017, Christy Tawii, research analyst at Euromonitor International explored some of the key trends influencing and driving growth in the African tourism industry. “The advent of the sharing economy has also planted roots on African soil, with services such as Airbnb and Uber establishing themselves as a firm part of the traveller’s service requirements when travelling to foreign destinations”.

Travel players in Africa have also shown their mettle when it comes to resilience and opted for multichannel marketing approaches in the online space, opting to utilise the services of online travel agencies and accommodation booking engines to further their reach says Tawii.

Increased competition from low-cost airlines, hotel brand expansion projects on the continent and a keen focus on the potential of business tourism and events has also lead to a boost in both domestic and inbound business trips.

Niche tourism continues to grow as a sector in Africa says Tawii, who pointed out that sports tourism, eco-tourism, cultural tourism, medical tourism, safaris and even beaches are all prevalent options for travellers within, and from outside of, Africa.

Chardonnay Marchesi, the general manager of Africa Travel Week, says of the trends report: “WTM Africa is eager to remain at the forefront of what is happening within the African tourism sector. WTM Africa 2018 will see an even greater focus on including niche tourism sectors, as well as technology development disrupting the travel industry.”
Source: Biz Community

 

Technology Companies Driving Demand for Industrial Space in Dubai

According to international real estate consultancy Cluttons, Dubai’s vision to diversify its economy further and establish itself as a thriving global business hub has accelerated business activity in a number of innovative industries, in turn spurring a new stream of demand for industrial space.

Cluttons’ bi-annual Dubai Industrial Market Bulletin for Summer 2017 points to new requirements registered in the first six months of the year by companies such as Noon.com, which is opening a 195,000 sq. ft fulfilment centre in Dubai South, while Amazon is showing interest in build-to-suit options following its purchase of Souq.com. Siemens has also announced plans to set up its global logistics and distribution hub at the Expo 2020 site, highlighting the strategic geographic importance of the area to global logistics and distribution firms moving forward.

Faisal Durrani

Faisal Durrani, head of research at Cluttons said, “Dubai continues to move forward with its ambitious diversification plans, which has led to the emergence of new innovative businesses as well as the expansion of global players into the local market. Online retail businesses, for instance, are relatively new to the region and will require distribution centres and other logistics facilities. We expect to see growing demand from this sector as it develops, particularly around Al Maktoum International Airport and the Expo 2020 site, where the majority of demand is currently centred for industrial space.

“This is a crucial juncture for the city as its world class logistics facilities move from being regional hubs to global ones. Siemens’ announcement in April to establish its global logistics and distribution centre at the Expo 2020 site is a huge boost of confidence for Dubai and clear recognition of the government’s efforts to reposition the emirate on the world stage. Despite the seemingly faltering global economic conditions, we expect Siemens to be joined by other international blue chip organizations as they take a position in what will arguably be the world’s largest and most advanced logistics distribution hub centred around JAFZA and Al Maktoum International Airport, which will be further complemented by Etihad Rail terminals.”

While new space requirements emerge, demand across the market has eased during 2017, exacerbated at present by the seasonal summer slowdown, with enquiry levels noticeably lower than at the start of the year. The persistence of an unstable global economic outlook, which has caused requirement levels to ebb across the city, a growing amount of speculatively developed warehouse space and increased competition amongst landlords have all contributed to the increasingly stagnant conditions.

Cluttons’ report shows that although demand has eased, headline rents as a whole across all the areas monitored have largely held steady. In the secondary market, however, rental rates at Dubai Investments Park (DIP), Dubai Industrial Park and Dubai South have fallen by between 4% and 12% over the last 12 months.

Murray Strang, head of Cluttons Dubai said, “Looking ahead to the second half of the year, we expect the strengthening pipeline of speculatively developed space to put rents under pressure, with more secondary stock likely to face sharper corrections as activity levels are expected to remain subdued. Landlords are expected to lower rents to entice relocation activity and we expect occupiers to capitalise on this. With that in mind, we expect rents to dip on average by up to 5% between now and the end of the year before there is the potential for increased stability as the Expo 2020 economic boost starts to materialise in early 2018.”
Source: WorldPropertyJournal

 

Hong Kong Retailers Keen to Get in at Bottom of the Market

62 Percent of retailers to open more stores in Hong Kong next year

A recent survey global real estate consultant JLL found that 62% of international and local retailers have plans to open new stores in Hong Kong in 2018. It shows retailers are calling the bottom of the retail market and predicting an improvement since the retail rents in core shopping districts have dropped 41.2% from the market peak in 2014.

JLL surveyed 50 international and local retailers in June and found that half of the respondents think Hong Kong’s retail market will recover next year. Although all retailers believe high-street rentals are still over-valued, 62% of them have expansion plans. There is an equal balance between retailers who prefer to open a new store in shopping malls and street-level shops.

James Assersohn, Director of Asia Pacific Retail at JLL reports, “Hong Kong’s retail market is still challenging but the mood among retailers has changed from pessimistic last year to believing the worst is over and there are now opportunities.”

He said Hong Kong is immensely important because it is a very strong domestic consumer market and because it offers exposure and access to the Mainland Chinese market.

Figures from the Hong Kong Tourism Board show total tourist arrivals in the first five months rebounded 3.2% y-o-y to 23.6 million. More importantly, arrivals from overnight tourists – who spend double on shopping than what same-day tourists spend – rose 5.7% y-o-y to 11 million.

“Tourist numbers are bouncing back. Hong Kong’s rentals have come down and still need a small amount of correction to create equilibrium. However, business is booming for many retailers and the reduced rentals have left a great opportunity to get prime retail space. As our survey suggests, retailers are seeing this as a great time to take advantage of the market conditions and acquire more space,” he added.

Online shopping in Hong Kong is less popular than in other cities. But 72% of respondents believe Hong Kong consumers will embrace it in the next 5 years, with 22% of retailers believing they won’t.

“The experience that online platforms offer is currently rather poor in Hong Kong and so far it is still more convenient and more enjoyable to just pop into a mall,” argues Assersohn. “However, this will change. You are starting to see malls future-proof themselves by focusing on creating the mall as a community hub whether that’s through more entertainment such as improved cinemas or increased variety and quality of restaurants. For bricks-and-mortar shopping to continue to succeed, the experience you get from a mall needs to be better than what online platforms can offer. So far, it is.”

Terence Chan, Head of Retail at JLL in Hong Kong said, “Landlords are now willing to offer flexible leasing terms to the retailers if the image of the brand is good. The rental correction has created opportunities for more retailers to enter the market, and for landlords to diversify their tenant mix. It has also helped many retailers to open crossover stores to create a new shopping experience.”
Source: WorldPropertyJournal

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