REAL ESTATE NEWS UPDATE| August 14th 2017 #3inews

Kingsway Tower Ikoyi Will be ready in 2018 – Developer

The Kingsway Tower project is moving rapidly, as the contractors finalize plans for completing the glass cladding and other top quality finishing that establishes the commercial facility in ‘Grade A’ category.

According to the developer, the iconic 15-floor Kingsway Tower in Ikoyi, Lagos will be delivered early next year. The completion of this project would be a remarkable addition to the number of commercial office projects in the choice area.

The project was designed by South Africa based Stefan Antoni Olmesdahl Truen Architects (SAOTA). “SAOTA is an architectural firm particularly concerned with intricate and explicit attention to detail, hence, the building’s orientation is critically structured so that the east and west faces minimal solar exposure.

The edifice with an office space that measures 13,317sqm, a landmass of 4,994sqm and 337 bays, representing 1:40 ratio is being supervised by Sutherland Engineers. Kingsway Tower is coming as an important addition to the hybrid districts and emphasizing a positive trend in urban development.

Sources hinted that the developers, Messrs Sky View Towers Limited may have shifted the completion date earlier third quarter of 2017 due to economic realities that affected imports and high price inflation.

According to him, construction is at peak stage to meet the delivery date, while the architects were particularly chosen to express a more pronounced approach to “Green Architecture” than the former, with the presence of vegetation in the spine of the facade.

“That level of treatment can be seen in the facade screen of the Kings Tower, which has a twofold purpose of filtering the elements, as well as creating an aesthetic in its own right. The undulating coffered canopy that protects the podium level also bears similar traits”, he added.

He stressed that Kingsway Tower is yet another aesthetically pleasing high rise building in the busy commercial node of Lagos comprising offices, ground floor retail, restaurants and basement parking.

The mixed-use theme of the building is in tandem with the new trend being seen in many new developments in Lagos expected in the coming years. The commercial justification is the appropriate utilization of land values, which are quite high in Ikoyi.

Traditionally an exclusive residential district and has been since colonial times, before the proliferation of developments in excess of 10 floors (mostly 15 – 20 floors).

The expertise of the engineering firm covers a diverse spectrum of multidisciplinary engineering services ranging from Structural Engineering, which is the company’s original core competency, to Civil, Mechanical (HVAC, Wet Services, Fire and Lifts), Electrical and Specialist Façade Engineering services.
Culled from: The Guardian

NMRC sign MoU with Real estate firm to facilitate access to affordable housing

At the just concluded 11th Abuja Housing Show, Nigeria Mortgage Refinance Company (NMRC) and Alpha Mead Development Company AMDC (the strategic business unit of the real estate firm; Alpha Mead Group) signed a Memorandum of Understanding (MoU), which will allow AMDC and NMRC to work together on housing finance, training, research, advisory and project structuring to increase the stock of affordable housing in the country.

The MoU will provide and permit relevant technical support and advice to Alpha Mead in relation to the residential real estate market in Nigeria. Furthermore, the partnership between both parties is expected to make it easier and faster for customers pre-qualified by AMDC to access mortgage from members of financial institutions under NMRC.

Prof. Charles Inyangete, Managing Director/CEO, NMRC, who spoke at the signing ceremony, described the MoU as a remarkable move, saying that NMRC decided to work with Alpha Mead because of its innovative and technology-driven approach to increase affordable housing stock in Nigeria and the facilities management expertise of the company to also maintain the projects after construction.

“The combination of these capacities that Alpha Mead bring to the partnership will give the market the assurance that property prices can be sustained, going forward and we can all deliver to the specific needs of the customers. “So, we at NMRC decided to key into this relationship because we will like to see this Alpha Mead model succeed. We believe it is a model that will allow more and more transactions in the housing development value chain and feed our member institutions with more projects to finance”.

Femi Akintunde, an engineer and Group Managing Director of Alpha Mead, expressed delight at the partnership, describing the partnership is a serious demonstration of NMRC’s commitment to reducing the nation’s increasing housing deficit and encouraging recognition of Alpha Mead’s innovative approach to delivering quality and affordable housing to Nigerians.

According to him, “It is increasingly becoming obvious that the conventional building methods cannot bridge Nigerian housing gap, especially in the face of the myriad of challenges that face the affordable housing value chain. So, what we bring to the market are the possibilities of addressing the challenges of affordability and quality; which are two critical issues that are inhibiting the nation’s affordable housing market”.

Akintunde noted that the current structure of the market makes it a tall order for people in the middle-income bracket to own homes because of the high entry barrier. He also pointed to the challenges of lack of skilled artisans, the high cost of building materials, and lack of standardised building and quality processes as having adverse effects on the quality of building in the market.

“So, on the one hand, we are addressing the issue of quality by using technology that guarantees repeated quality, straight edges and structural integrity; and on the other hand, we are addressing the challenges of affordability by using our technology to achieve up to 15 per cent savings for our customers”.
Culled from: The Vanguard

Civil servants get N643m Loan for Home Renovation

The Federal Mortgage Bank of Nigeria (FMBN) on Monday announced that N643 million loan has been disbursed to 740 federal civil servants who benefited from its Home Renovation Loan (HRL) scheme.

These civil servants are the fifth batch of beneficiaries in the scheme. The scheme affords contributors to the National Housing Fund (NHF) the opportunity to access mortgage loans of N1 million for the renovation of their existing homes.

At the ceremony in Abuja, Managing Director of FMBN, Mr. Ahmed Dangiwa, commended the Federal Government Staff Housing Loans Board (FGSHLB) for collaborating with the bank in the programme.

While giving an analysis on the impact of the scheme, the Managing Director said the total loan approved and disbursed by the FMBN to federal civil servants under this window through the FGSHLB is N1.2 billion summing up a total of 1,347 beneficiaries

Dangiwa also added that N3.35 billion had so far been disbursed to 4,342 beneficiaries of the scheme across the country for both federal and state civil servants and employees of the organized private sector.

He said that one of the major functions of the bank was the management of the NHF, a scheme established to address workers’ housing needs, while also explaining that the National Housing Fund could address constraints to the mobilization of long-term funds for housing finance and ensure that workers accessed housing loans at affordable interest rate through NHF contribution.

Furthermore, he stated that the realization of the scheme had been hampered by several challenges to housing finance in Nigeria. Some of the challenges listed include lack of access to land, inadequate funding to the housing sector, inaccessibility of mortgage loans due to the improper title to properties and cumbersome procedure for obtaining governors’ consent to land.

He assured the Federation’s Head of Service of the bank’s unflinching commitment towards partnering the loan’s board in providing affordable housing for civil servants.

On her part, Executive Secretary of FGSHLB, Dr Hannatu Fika, said the board had continued to explore other windows in the mortgage industry to improve its delivery of service, adding that when such windows were fully opened, public servants would smile better as ownership of their homes would come without much stress.

Fika said it was in the recognition of the critical role of improving the welfare of workers that government established the housing loan’s board in1924 and FMBN.

In her opinion, addressing the housing needs of the federal public servants will not only reduce the burden of payment of rents to landlords annually but will eradicate the perceived corrupt practices.

The ceremony was part of the activities of the Office of the Head of Service of the Federation to commemorate the 2017 African Public Servants week celebration.
Culled from: PMnews

NMRC refinances N8.2 billion mortgages, pledges homeownership

Despite the harsh operating environment, considering the high-interest rates and inflation, the Nigeria Mortgage Refinance Company (NMRC) has financed a total of N8.2billion mortgages in 2016 from N1.8billion in 2015.

The company also recorded significant growth during the 2016 financial year, with profit before tax increasing by 164 per cent from N487 million in 2015 to N1.28 billion. The Net Interest Income increased from N2.03 billion recorded in 2015 to N3.02 billion, while total assets stood at N40.8billion, an increase of N1.74billion over a prior period balance of N39.06 billion.

Essentially, the commercial and mortgage banks that benefitted from the mortgage refinancing loans are Imperial Homes, N1.7 billion; Trustbond Mortgage Bank, N778million; Sun Trust Mortgage Bank, N1.3 billion; Homebase Mortgage Bank, N731 million; Stanbic IBTC, N1.8 billion; Sterling Bank, N1.6 billion; Abbey Mortgage Bank, N21.9million and Infinity Trust, N101.7million.

Dr. Charles Okealaham, chairman NMRC; made this known at the third annual general meeting in Lagos. He said that NMRC is optimistic about the global economic environment and confident that the measures being implemented by the government will reverse the decline in growth and output and usher in an era of economic recovery.

He said that the company is adhering to its long -term strategy of putting structures in place that will make homeownership a reality for Nigerians. In his statement at the event, Okealaham said he foresees better days ahead. “We’re entering a period of falling inflation and interest rates, should these projections come to pass, our industry and indeed our company stand to benefit immensely”.

NMRC Managing Director, Prof. Charles Inyangete disclosed that the company has opened discussions with multilateral agencies willing to provide credit enhancement products to support bond issuance for mortgage lending to the informal sector, which will create more market opportunities for financial inclusion, and capital market deepening.

The director hinted that the prevailing high interest and inflation rates continue to pose an affordability challenge for home acquisition through mortgages from conventional banking products, the company plans to issue first Suzuki bond this year to attract non-interest mortgages. The product would drive down interest rate burden on mortgage beneficiaries.

The agreement with OPIC and Imperial Homes, TrustBond and Homebase mortgage banks was to further stimulate housing development. The partnerships are aimed at providing liquidity and empower the three mortgage banks to give more long-term mortgage loans to potential house owners in the Ogun and Lagos environs.

OPIC Managing Director, Babajide Odusolu said that the deal holds great promise for the achievement of the corporation’s plans to achieve the target of being the dominant provider of quality and affordable housing.
Culled from: The Guardian

FCT Minister inaugurates 300 affordable housing units

In the bid to meet the housing deficit challenge by both the private and public sector, positive steps is being taken towards achieving this fit. One of such step saw the Minister of the Federal Capital Territory (FCT) Malam Muhammad Bello commissioning 300 affordable housing units and laid the foundation for the development of another 300 in Kaba District, Abuja.

Bello said the FCT Administration is embarking on this project to give teeth to President Muhammadu Buhari’s efforts in tackling housing deficits in the country and ensuring good shelter for all.

In his words, he noted, “We started with reforming the institutional framework for housing development in the Territory with a view to making it possible for private investors to move in, because of our belief that government alone cannot provide all the houses that the people need”.

“It is also interesting to note that for as low as 6, 12 or 16 million naira, young, middle or higher level officers could subscribe to houses that fit their income after an initial modest down-payment according to terms corresponding to their mortgage arrangement”.

The minister also said “I am glad to note that besides the provision of houses the agency is creating jobs for a considerable number of skilled and unskilled workers. I am aware that this estate has over 700 construction professionals and artisans working here.

“I must inform us that Abuja is a mature city now and like all mature cities, the idea of empty plots has become a far cry. Indeed, phases I to III of the city has been fully allocated while what remains of phases IV and V is all we have currently. Consequently, the FCTA is emphasizing allocations to groups and institutions as well as high-rise developments to use the few spaces remaining to benefit the greatest number”.

Dr. Babatope Ajakaiye, FCT Permanent Secretary, who represented the Minister disclosed there was “no housing deficit in Abuja, but there is a deficit in affordable housing. Go everywhere, you see estates locked up, and fanciful estates that people cannot afford to buy.

“That is why we are doing this. One bed room is N6 million, two-bed room starts from N10 to N12 million. It is affordable, with the help of the Federal Mortgage Bank that we give our civil servants loan and the Federal Government Staff Housing Loan Board is there for our civil servants to access loans and be able to afford this. So these are the kinds of things we are asking people to do, not to build houses that are not affordable”.

When enquired about a challenging issue of private developers taking land for mass housing and selling it, the Minister affirmed: “That has stopped. That is why the Honourable Minister has suspended mass housing allocation. We are sorting out all these, talking to developers.

Executive Director, Federal Government Staff Housing Loans Board (FGSHLB), Dr. Hannatu Fika while delivering good will message noted that effective housing has a multiplier effect on our economy through direct and indirect employment, adding that affordable housing has potentials including good health, reduced anxiety, depression and security”, among others.

Acting Managing Director, Abuja Property Development Company (APDC), Mr. Yunusa Yusuf in his vote of thanks disclosed that the “commissioning of the first 300 units in APDC Capital Estate marks the gradual completion of the provision of 615 housing units in phase I of the estate”.
Culled from: The Nation



Suburban Office Markets With Urban Settings Provide Nice Returns in U.S.

According to CBRE, suburban U.S. office markets that provide an urban-like live-work-play environment are well positioned to capture strong demand from office users.

Among the most common attributes of so-called “urban-suburban” sub markets is the presence of abundant retail, office and housing options, as well as employment opportunities, based on a survey of CBRE Research professionals in the 25 largest suburban markets.

Established urban-suburban sub markets have the added advantage of amenities like entertainment and recreational offerings, restaurants and grocery stores and public transportation access. Established sub markets include the New Jersey Waterfront, Irvine, Santa Monica and Palo Alto, CA.

Emerging sub markets, such as the Los Angeles sub market Glendale or the Central Perimeter in Atlanta, are more likely to be in transition, with development, construction or renovation – including ongoing or planned public transit projects – shaping dynamics. Notably, emerging submarkets are more likely than established sub markets to have mixed-use projects in the works. Mixed-use projects often serve as a catalyst for additional development in a particular area, spurring interest in the surrounding neighbourhood. Emerging sub markets are also more likely to utilize government incentives, zoning changes or other public commitments to assist development than established submarkets.

“Steep rental rates and an increasingly limited supply of quality office space, especially in large blocks, in downtown sub markets will continue to lead more tenants to look for space in suburban markets,” said Scott Marshall, executive managing director, Advisory & Transaction Services & Investor Leasing, CBRE. “Moreover, as more millennials age and begin families, many will eventually move to the suburbs. Office locations that can provide the urban characteristics this pool of workers has grown accustomed to will be in the highest demand.”

The vacancy rate for emerging urban-suburban sub markets was 15.3 percent as of Q1 2017, compared with 13.8 percent for the established urban-suburban submarkets. Similarly, rents in emerging urban-suburban sub markets have yet to surpass the overall suburban average ($27.79 per sq. ft.) but were essentially equal at $27.46 per sq. ft. and significantly below rents in established urban-suburban sub markets ($31.90).

The amount of new office construction underway in urban-suburban sub markets is slightly elevated relative to their share of inventory. Emerging sub markets account for 22 percent of total square footage under construction in the top 25 suburban markets (compared to their 20 percent share of total inventory) and established sub markets account for 30 percent (compared to 26 percent of total inventory). Yet in certain metros, these shares are much higher, with urban-suburban sub markets accounting for 100 percent of the suburban office space under construction in Sacramento, Minneapolis/St. Paul, Kansas City and Austin.

“Established urban-suburban sub markets offer investors and occupiers a relatively low-risk alternative to downtown office space, as fundamentals in these sub markets already outperform the suburbs overall and in many metros, rival the CBD,” said Andrea Cross, America’s head of office research, CBRE. “Alternatively, emerging urban-suburban markets offer those with longer-term strategies, an opportunity to secure space in up-and-coming areas while there are still options to choose from and purchase prices and rents are more affordable.”
Source: World Property Journal

London slump drags UK house-price growth to a standstill

London – UK property prices stagnated in July as a slump in London values spread to neighbouring areas, according to the Royal Institution of Chartered Surveyors.

After months of decline in the London housing market, largely due to prime properties in the centre of the city, prices in England’s southeast had their worst performance since 2011, RICS said in a survey published on Thursday.

Nationwide, RICS said its price gauge fell its lowest level in more than four years, despite increases in Northern Ireland, the West Midlands and the southwest. Over the next 12 months, respondents expect prices to rise, though they were the least optimistic in a year.

“Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come,” said Simon Rubinsohn, RICS chief economist.

The report is the latest to show the housing market has slowed considerably in the past year, with price inflation cooling and mortgage demand slipping.

Much of the weakness centres on a change of fortune for the most expensive homes. According to the RICS survey, for homes marketed at more than £1m, 68% of respondents said asking prices had been cut in the past two months. For properties below £500 000, the proportion was 37%.

The economy has also cooled, with the Bank of England (BoE) downgrading its growth outlook this month and saying that Brexit uncertainty is taking a toll. Separate reports in the past week showed both consumer spending and house-price growths were in their worst slump since early 2013.

In the survey, while respondents disagreed over whether Brexit was to blame for the faltering housing market, RICS said political uncertainty was playing a part. The main problem is a shortage of homes for sale, although muted interest from buyers and the aftermath of tax changes last year were also to blame.



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