REAL ESTATE NEWS UPDATE| September 5th 2017 #3inews

The State Government of Osun to build 5,000 housing units

Rauf Aregbesola – Executive Governor of Osun State

In a bid to contribute to President Buhari’s effort in tackling the housing deficit in the country, the State Government of Osun in partnership with the African Nations Development Programme has concluded arrangements to build 5,000 housing units of two-bedroomed bungalows in five major towns within the state.

Olusola Adepoju; the media officer of the Osun State Ministry of Lands and physical planning, disclosed this in a statement in Osogbo last week.

Governor  Rauf Aregbesola during the visit of the representatives of the ANDP to him in Osogbo said that about 400 hectares of land had been provided for the housing project and other infrastructure in the five towns.

The governor, who was represented by the Commissioner for Lands and Physical Planning, Mr. Akintunde Akinajo, noted that the housing units would be built in Ede, Iwo, Ikirun, Ilesa and Ila-Orangun, stressing that the state government had held series of meetings with traditional rulers and other relevant groups in the five towns in a bid to carry all stakeholders along in the project.

Aregbesola also stated that all the required documentations had been communicated to the ANDP on the selected sites appreciating and expressed gratitude to ANDP for choosing Osun for the development project, while he also assured the group of his total support.

He said the current administration in the state had invested so much in the development of infrastructure and others, saying this had created a framework upon which development could be built.

Mr. Eze Ifeanyichukwu; the Country Director of the ANDP, stated that the housing projects of  5,000 housing units of two-bedroomed bungalows would have facilities such as hospitals, schools, police stations, and markets.

Ifeanyichukwu also added that the project was conceived to assist the low-income earners to have homes of their own, noting that the project would commence after the groundbreaking ceremony.
Culled from: The Punch

FG to train real estate practitioners, Partners with Academy

The Federal Government in its renewed drive to boost the real estate sector of the country and tackle the housing deficit challenge in the country has finalized its plans to train practitioners within the industry in a bid to improve quality service delivery. This drive is hinged on a public-private partnership between the Centre for Management Development, and Mortgage and Real Estate Academy.

The Chairman of the institution and Managing Director of Western Atlantic Corporation Limited, Dr. Ade Akinfolurin, said the training would commence with a luncheon in Lagos on September 19.

He said the public-private partnership was designed to help stakeholders key into the opportunities in the industry, adding that “A nation that cannot provide housing is already a failed state. The partnership with the CMD is appropriate considering the fact that this is an area that has not been focused on before now. The CMD has the FG’s mandate to provide capacity and we are leveraging that.

Akinfolurin said the upcoming luncheon will flag off the entire training program of the academy and secure the interest of the participating public in the development of the nation’s mortgage and real estate industry. It is also meant to further instill public confidence in President Muhammadu Buhari-led administration, that through the academy, a new horizon in the delivery of the much-needed human capacity in the mortgage and real estate industry could be achieved.”

According to him, the luncheon is to buttress the importance of the academy, taking into consideration the Federal Government’s mandate to the various stakeholders in the discharge of their responsibilities. Noting that most importantly, it emphasizes a demonstration of the fact that government is desirous of genuine partnership with the private sector to develop the economy.

The chairman equally noted that the first batch of trainees would be 70, incorporating representatives from all the primary mortgage banks, state governments’ representatives, real estate developers, the Federal Mortgage Bank of Nigeria, the Nigerian Mortgage Refinance Company and the Federal Housing Authority, among others.

Although the proposed training program was supposed to have commenced in 2016, Akinfolurin said its take-off was postponed until September 2017 to enable the Federal Government to perfect other areas of the program for a comprehensive coverage that would address all issues in the industry.

Another reason given by him for the postponement was to ensure that the training facilities of the CMD are enhanced for these high-end training opportunities. Akinfolurin reiterated that the academy will provide first-class training and workshops that are structured for the Nigerian economy.
Culled from: The Punch

Residence advised vacating flood-prone River plain

As part of precautionary measures taken by the government to ensure security and avert imminent flooding and loss of lives and property along Ogun River plain, residents have been warned to take steps and measures, which may include vacating their residences temporarily.

Commissioner for the Environment, Dr. Samuel Babatunde Adejare, who disclosed this in a statement, urged residents in these areas not to hesitate to move to higher grounds once they notice a gradual accumulation of rising water as the State is not ready to lose any life during the period.

Adejare, while commenting on the seasonal water releases that have commenced noted that the controlled water releases from the dam were a sensible approach of the Ogun-Osun River Basin Development Authority to prevent overflow and possible integrity failure of the Ryan Dam. who hinged this warning on commencement of seasonal water releases by the management of Oyan Dam

According to him, the dam could spell doom for people around the catchment of the river basin as it portends endanger lives and property, especially to the people living along the plains of the Ogun River in Lagos State. Stating that the controlled release of water from the Oyan Dam was the outcome of the collaboration between the Lagos State Government and the Ogun-Osun River Basin Authority to forestall the possible collapse of the dam.

He, therefore, advised those residing along plains of Ogun River in Lagos State such as Ajegunle, Owode-Onirin axis, Owode-Elede, Isheri North, Ogolonto, Irawo etc. to be extremely careful and take precautionary measures which may include vacating their residences temporarily. “The controlled water releases have become expedient as a result of the weather forecast and the continuous heavy rainfall which is likely to resume later in the month”, he said.

Dr. Adejare reiterated that primary and secondary channels in the State were being maintained and dredged to contain flood related challenges that may occur in the State.

The Environment Commissioner also advised Lagosians to be safety conscious during this period and urged them to take some safety measures like avoiding going out during the rains except only when it is absolutely necessary as well as being conscious when driving and do not over speed.

He assured that the State Government would continue to intensify efforts geared at achieving the zero tolerance to flooding in Lagos.

Culled from: The Guardian

Abakaliki Flood submerges ex-governors house and other properties

A major flood in Abakaliki has wreaked havoc on the residents in Abalaliki the capital of Ebonyi state. Among the houses most affected by this flood are those residing at Onwe road and destroyed property worth millions of Naria at early hours of Sunday.

The flood equally submerged a garden spot (recreational center) also located at Onwe road that belongs to the former governor of Ebonyi State, Dr. Sam Egwu. Other properties belonging to prominent stakeholders of the state were equally affected.

Some other properties that were allegedly affected by the flood included those of prominent hotels and houses belonging to prominent representatives of the state National Assembly.

Onwe road is a popular location where over 70 percent of political office holders in the state reside. The flood also destroyed property worth millions of Naira and even prevented worshippers whose church building was located inside the garden.

Bishop of Methodist Church, Dioceses of Abakaliki, Rt. Rev. Lawson Elom who was an eyewitness said, “It is so devastating. Since I came to Ebonyi state 2 years ago, I have been experiencing this, at least once or twice a year and it is not a funny thing.

“My request to the government is that they should intervene. The federal government should as a matter of urgency help Ebonyi people. Flood is another devastating situation that does not spear anyone and so, there is a need for government to do something urgently about it, in order to serve live.

“Every year there must be a flood and as such, people’s properties are destroyed, lives are equally destroyed, for example, if people came out by 3:00 am when this flood started, or that if this flood happened in the afternoon, it might have carried a very number of people including children.

“We experienced this flood very badly again this year at Onwe road. Some of us couldn’t have come to church because our houses were filled up with water. So, there is a need for the state/ federal government to intervene,” he stressed.

Culled from: PM news

Vice president commissions multi-million dollar BUA cement factory In Edo

The Vice President, Prof. Yemi Osinbajo, was on ground last week to commission the multi-million dollar BUA cement factory In Edo state and described the project as a consolidation of Nigeria’s self-sufficiency in cement and a big boost to the nation’s export capacity.”

Osinbajo stated this shortly before commissioning the first phase and the groundbreaking of the second phase of the three million ton-capacity ultra modern cement plant, located in Okpella, in Edo State.

“I am extremely proud to be a Nigerian as I believe most of us here are. This is wholly a Nigeria enterprise and to know that the plans, execution and successful establishment of this industrial complex were done both by a Nigerian and by a Nigerian team, this really is a great milestone achievement.”

“The construction of this plant is, of course, a big boost to the Nigerian economy, it will provide thousands of direct jobs and indirect jobs, both for skilled and unskilled workers from the commencement of the construction of the plant to the smooth-running of the operation processes.

“I am happy to note that for the construction of power production facility for this plant, the BUA Group has used the most modern and efficient gas turbine which combines low and economically value-cost with a very high degree of reliability,” he said.

Mr. Vice President noted that the enterprise typified the expectations of the present government in the economic and growth recovery plans which were launched by President Muhammadu Buhari on April 05, 2017, where the President made it clear that Nigeria’s economic emancipation and growth must be private sector-led and driven.

“There is simply no public sector resources that can match the resources, drive and the commitment of a private sector. And for us as a government, doing all we can to encourage investment of this type, it is not just a good idea but a corner stone of our economic policy.

“Worthy of mention is that our focus on combating the identified constraints to our economic growth such as fuel shortage, the inadequacy of power, absence to foreign exchange, unfriendly business regulations, shortage of skilled manpower among others,” Osinbajo said.

In his remark, the host Governor, Godwin Obaseki of Edo State, said the event marked the real industrialization of the State.

“Today, we salute the foresight and patriotism of the founding fathers of Edo State who, in 1964, established the Okpilla Cement, which later became known as Edo Cement Company Limited.

“I am all very delighted that this commissioning today is also very much at the heart of the strategic transformation of our State’s economy. A state where large scale industrialization driven by the private sector capital is happy to create economic empowerment and impacting lives.

“From the very onset of our administration, we promised Edo people that our change slogan was not mere rhetoric. From Agro-business and industrialization, through infrastructure to housing, education, science and technology we have never lost sight of the need to build a solid, productive and integrated economy with the interest of our people at the core”, he said.

Culled from: PM News

FGN Initiates Plans to Deliver Energy Efficient Houses

The Federal Government of Nigeria has announced plans to embark on the massive construction of energy efficient housing across the country.

Alhaji Suleiman Hassan Jara; Minister of State for Works, Power, and Housing II, disclosed this at his home in Gombe during the Sallah break. He said the concepts, which discussed at a recent workshop on housing would be delivered in every state and possibly, every local government area of the country

He buttressed that the plan is to deliver houses that are adaptable, affordable and with full consideration to the cultural heritage of the people and climatic conditions.

Hassa Jara added that, “At the workshop last week, we resolved to embark on housing projects that are energy efficient.

“That means a house that will use less power consumption with better ventilation, so that you needn’t have to use so many ACs, you don’t have to use so many bulbs, but minimum energy, maximum comfort.”

The houses will be structured to be affordable without compromising quality, “So, we are looking at a model, where the cost of the building will come less.

“We are also looking at it what else constitute the cost of the building; if it is the land, we will see how easy it will be to access land to make housing better for the people.

“Is it the structure? We will look at that one and also the person that is going to occupy that building and then build to his capacity without compromising quality.”

He said the project would begin with necessary assessment of would be owners as they would be contributing to the construction of the buildings.

Thavhani Mall Officially Opens its Doors

Khosikhulu Toni Mphephu Ramabulana, of the royal VhaVenda people, officially opened the new Thavhani Mall in Thohoyandou, Limpopo South Africa at an evening ceremony late last week. The new 50,000 sqm regional mall introduced the biggest selection of shopping and leisure retail into the area with almost 140 stores.
Other dignitaries present at the opening included Vhembe Executive Mayor Cllr Radzilani Florence, Thulamela Mayor Cllr Avhashoni Tshifhango, Khosi Ramovha of Thavhani Property Investments, Dr. Sedise Moseneke of Vukile Property Fund and Paul Gerard and Patrick Flanagan of Flanagan & Gerard Property Development & Investment.

It’s opening realizes the dream of local businessman Ramovha, who had the vision for a regional mall in Thohoyandou eight years ago. To achieve this vision, Thavhani Property Investments partnered with leading South African shopping center developers and investors, Flanagan & Gerard Property Development and Investment, and co-owners JSE-listed retail REIT Vukile Property Fund.
Ramabulana said, “If we all choose to work together, a modern society that is characterized by human prosperity is within reach. This is more proof that backwardness and poverty can be defeated. They can always be solved if you prioritize what is important for people and defuse unnecessary tension among those who are privileged to lead.

“I must congratulate the pioneers of this massive development on a job well done. I would also like to specifically congratulate the owners of this huge development for having decided to invest in this part of our land. In the same breath, I also congratulate those who persuaded the investors to invest wisely by building a massive mall in this economically vibrant area of our province. We are also thankful to the leadership of the Thulamela Municipality, past and present, for creating a conducive atmosphere for this development to take place.”

Ramabulana also praised Ramovha for his role in making the project a reality. “As part of the role I play in changing the situation of people for the better, political leaders, royal leaders, business people, and structures of civil society must converge from time to time to discuss the issue of development. We will have to identify those areas of the economy that will help to change the face of our local economy to find a way in which we can make them prosper. It is through the creation of sustainable jobs that we can sustain initiatives like this because we need people with buying power.”

Cllr Florence highlighted the powerful economic impacts that the mall represents for its community by reminding guests at the opening celebration of Thavhani Mall about the high levels of poverty in South Africa, and in Limpopo specifically.

“This mall is only surpassed by Mall of the North in the province and its second phase will see it become even bigger. We have no doubt that one woman employed here will save a family of eight and, through that, we will have dealt with poverty in our area. We wish to thank all involved in bringing a development like this to our part of the world. Those returning home here, after being away for a few years, will be surprised at the changes. I wish to thank the royalty and political leadership involved for continuing to be a beacon in the development of the town,” she said.
Culled from: BizCommunity

Africa rejects UN-Habitat reform, new agency to tackle global urbanization

As the plight of the world’s urban poor occupies an irrevocable priority of the global development agenda, fresh steps being proposed by a panel of experts on how to reform the United Nation’s current lead agency on urban issues, UN-Habitat is ruffling some feathers among the international community.

Among the panel’s recommendations, which are now slated to be debated, negotiated and acted upon by diplomats at U. N. Headquarters in New York this week ahead of national governments approval under the General Assembly, include the creation of a new entity – UN Urban, as a coordinating mechanism similar to UN-Water or UN-Energy, to stimulate an interest in cities across the U. N. system.

Consequently, the panel agrees that the current governance model suffers from systemic problems that affect its accountability, transparency, efficiency, and effectiveness and it recommends some fundamental changes, focused on the need for involvement by all Member States and by a capacity to reflect the complexity of the urban development landscape with its multiple actors.

“It recommends a new governance structure that includes universal membership of all 193 Member States in an overarching Urban Assembly, and the addition of a small, focused Policy Board to provide policy and strategic advice as well as oversight on projects. The Policy Board would integrate input from the CPR, the Secretariat, and the Executive Director, but also from a committee of local authorities and sub-national governments and a committee of urban stakeholders, both having the capacity to evaluate and review resolutions and to offer coordinated guidance to the Policy Board.”).

In order to explore new and innovative sources of funding, and to increase the available resources for inclusive and sustainable urbanization, the panel recommends that UN-Habitat develop a strategy for cooperation with multilateral banks, financial institutions, and private sources of finance. It recommends the creation of a dedicated Global Trust Fund as a platform to secure alternative funding for sustainable urbanization efforts.

A lot of groups and many urbanists have been skeptical on the vision offered by the panel of experts, especially, how the new body would sit alongside UN-Habitat while others are wondering whether the new organ will serve as a vehicle exclusively for UN-Habitat’s work.

Specifically, the group said that the creation of UN Urban is not viable. “There would be more value in strengthening existing mechanisms, including the New York office of UN-Habitat, as a liaison office with other UN entities with converging mandates, resulting in increased efficiency and enhanced policy integration while avoiding duplication.”

They argued that the “UN Urban would create an additional layer of unnecessary bureaucracy and will have financial implications that contradict the general trend of zero budget growth within the UN. It would also complicate and duplicate operations rather than simplify them, in a manner that is counter productive and contributes to weakening UN-Habitat rather than strengthening it.”

While the proposal to replace the current Governing Council of UN-Habitat with a universal membership body entitled “Urban Assembly” does fall within the general views of the African Group, the package under which it is proposed is difficult to accept in its current formulation.

“The suggested ‘Policy Board’ goes against the very spirit of opening up the Governing Council to the participation and decision-making by all member states and it also contradicts the principle of democratization of the UN system. It would also further complicate the governance of UN-Habitat, weakens the oversight of member states on its workings and create further bureaucratic constraints that will result in unnecessary expenses.”
Source: The Guardian

Foreign Investors Drive One Third of Commercial Investments in Australia

According to CBRE, Australia’s commercial real estate remains an attractive asset class for offshore capital, with foreign investors accounting for 33% of all transaction activity in the first half of 2017.

New CBRE Research shows Asia remains a key source of this capital, with approximately $1.6 billion of Asian outbound capital directly invested into Australian property in the first six months of 2017.

While this was 25% lower than in the 2016 corresponding period, CBRE’s Head of Research for Australia Stephen McNabb said this needed be viewed in the context of a market where overall transaction volumes fell by 37% in AUD terms.

“Foreign investment still accounted for approximately one-third of all activity in Australia’s commercial property sector, with demand for assets remaining strong given the higher yields and strong fundamentals demonstrated by the Sydney and Melbourne markets,” Mr. McNabb said.

He attributed the fall in investment activity to a lack of available stock rather than a decline in buyer interest and noted that Australia had been ranked as the number one destination for cross border capital in CBRE’s 2017 Investor Intentions survey.

“At this stage of the yield cycle – which is nearing its peak in Australia’s major markets – and with a reasonable immediate outlook for rent growth, there isn’t a compelling reason to sell assets. From an investment perspective, assets remain eagerly sought after and this is evident in further yield compression across all assets classes nationally in the first half of 2017,” Mr. McNabb said.

CBRE Research shows approximately $45.2 billion of Asian outbound capital was directly invested into global property in the first six months of 2017, representing a 98.4% uplift on the $22.8 billion allocated in the first half of 2016.

Strength in Asian outbound investment was led largely by the preference of investors for big-ticket deals in the global real estate sector. In the first half of 2017, 74% of committed investments were deployed into transitions valued at $250 million and over, versus 56% in the corresponding period in 2016.

Geography-wise, Asian investors remain bullish on Europe, Middle East and Africa (EMEA) and the Americas, which drew $21.9 billion–driven largely by a single $13.2 billion from the logistics portfolio purchase–and $11.3 billion in capital, respectively. Intra-Asia investments continue to grow, finishing the first half at $10.4 billion and representing a 23% growth in total capital.

Sectoral diversity also continues to be a major theme within asset strategies, with Asian outbound investors rebalancing real estate portfolios internationally. Office and logistics are the most attractive sectors, accounting for 44% and 34% of all committed capital throughout the first half, respectively. Residential (7%), hotels (7%), retail (6%) and specific sectors like aged-care housing (2%) remained niche investments globally.

Outbound investment from China remains the region’s largest despite heightened regulation, with a new group of investors more active over the first half. Chinese sovereign wealth funds (SWFs) emerged as the largest single outbound investor class in the first half of 2017, driving total capital deployment to $25.6 billion versus $10.1 billion year-on-year. China-based property companies and conglomerates have also been considerable buyers of offshore real estate assets in the first six months of 2017.
Source: Worldproperty Journal

Banks predict growth in sales and prices in Spanish property market

The residential property market in Spain is set to see a steady rise in home prices in the foreseeable future, according to the real estate branch of one of the country’s banks.

According to Solvia, the property division of Sabadell bank, average Spanish house prices will rise by 7.3% between now and 2020, although there is likely to be wide regional variations.

Meanwhile, another Spanish bank Bankinter is forecasting that house prices will have risen 4% by the end of 2017 and are set to increase by between 4% and 5% next year.

Regions with the strongest demand and economies such as Catalonia and Madrid are likely to see the biggest rises and the Solvia forecast suggests increases of 11% and 14% respectively.

Solvia also expects sales to increase, predicting growth of between 7% and 8% each year until 2020 while Bankinter suggests transactions could rise even more quickly. Sales are likely to be strongest in Barcelona, Madrid, Seville, Malaga and Alicante, where demand is high.

Meanwhile, demand for property on the Spanish island of Ibiza is pushing up sales and homes are selling faster, according to the latest analysis report from Engel & Volkers.

‘Demand for high end residences on Ibiza remains significantly higher than the supply available. In addition, we registered a rise in average property prices in 2016,’ said Florian Fischer, managing partner of Engel & Völkers on Ibiza.

Ibiza benefits from strong international demand and last year Engel & Völkers brokered properties to buyers from 17 different countries. The report reveals that Germans top the group of overseas buyers, followed by British, French, Swiss and Italian buyers.

Ibiza Town is set to continue to be one of the most in demand markets on the island and redevelopment of the center is due to be completed this year, while some of the most exclusive residential areas can be found in the south and southwest of the island.

According to Fischer; ‘This year has got off to a great start and we are building on the positive sales growth of 2016. To date we are ahead of sales target and continue to see demand from a wide variety of international buyers who are looking for premium property often with sea views’.

‘Continued investment into the island’s infrastructure is key to meeting the demands of the high end market that Ibiza is renowned for. New local regulations and restricted building permissions in rural areas will protect the island’s countryside but also impact limited supply and push prices up,’ he added.
Source: Property wire

 

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