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Chuks Udo Okonta
Stanbic IBTC Holdings, a member of Standard Bank Group, has sponsored the 8th West Africa Property Investment (WAPI) summit as part of its commitment towards fostering growth in Nigeria and Africa.
The event assembled prominent stakeholders in the real estate sector through a hybrid summit of in-person and virtual dialogues to discuss the theme, ‘New Frontiers In the New Normal’.
As the evolving Nigerian market navigates micro and macro challenges, the real estate sector remains resilient and has been able to diversify, grow and emerge with veritable investments from local and offshore players. This poses prospects for sustained growth across the industry and by extension, the entire economy.
Organised by Africa Property Investment (API) Events, this annual summit aims to investigate opportunities across the value chain while positioning the industry for the spotlight. The new investment vistas cover the expansion of regional retail, institutional brands, new funding strategies, infrastructure gaps and possibilities, the function of green financing, and regional development patterns.
Oyinda Akinyemi, Executive Director, Equity Capital Markets Execution, Africa Regions, Stanbic IBTC Capital, a panel discussant at the summit noted that investors need to continue to engage with the present realities and deepen their knowledge of market potentials.
She said, “The risk sector in Nigeria is in its early stages compared to other experiences in developing markets. However, there has been much progress in the asset quality and regulation framework since 2013. Therefore, investors must disconnect from the past and engage in what is potentially doable in the real estate sector”.
“The asset quality, the sponsor’s quality and the risk quality are only a few factors that contribute to a successful agreement. It is, therefore, critical to comprehend the sector’s development because institutional investors are raising concerns about some of these issues. Through these interactions, investors can ask questions and learn about real estate products, to make better and informed choices”.
Speaking at the summit, Tola Akinhanmi, Head, Real Estate Finance, West Africa, Stanbic IBTC Capital, highlighted the resilience of the asset class over the years and the benefits it has provided to investors. “Real estate is a long-term asset class, it will inevitably be vulnerable to global headwinds. However, this is changing because of the post-pandemic recovery”.
Significant growth is observed across “old” alternative asset classes like digital (data centres), education (student housing), medical assets and traditional asset classes including retail, offices, industrial, and residential. Additionally, the number of local and international businesses on the market keeps growing”.
Tola further acknowledged that increased capital liquidity is necessary for the sector to grow and become more sophisticated. “We have witnessed an increase in offshore capital investments over the previous ten years, which helped the market establish multiple shopping centres and commercial office buildings. However, the asset class’s liquidity is crucial for furthering industry investment. Institutional investors and developers must expand to complete and optimise the investment cycle fully”.
Stanbic IBTC will continue to promote new frontier growth opportunities for Nigeria’s ecosystem while unbottling constraints for local and offshore investors.
