JOHNBEDE ASSOCIATES

REAL ESTATE BUSINESS OPPORTUNITIES

IN NIGERIA

JULY 2014

AFRICA- 54 COUNTRIES

NIGERIA -36 STATES+ABUJA

PREAMBLE Nigeria has a population of 170million souls. 60% are youths under the age of 30 years 80% of these youths are unemployed Housing demand I humbly put this at 8-10million units.

$80 TRILLION Housing Real Estate contribute less than 3% of GDP

whereas they should make 10-15% GDP $510.00 BILLION Per Capital $2,688 GROWTH RATE 7% INFORMAL SECTOR CONTRIBUTES 60% FDI :AFRICA $57 BILLION;

NIGERIA $5.6 BILLION

DRIVERS OF GROWTH 1. RISE IN AFRICA MIDDLE CLASS

2. DEMOGRAPHIC INDICES

3. RURAL URBAN MIGRATION

4. HIGH TECH-TOUCH ECONOMY

5. RISE IN CHRISTIANITY

6. GLOBALISATION

7. YOUTH FULL POPULATION

WHAT IS REAL ESTATE The most basic definition real estate is "an interest in land". Broadening that definition somewhat, the word "interest" can

mean either an ownership interest (also known as a fee-simple interest) or a leasehold interest.

In an ownership interest, the investor is entitled to the full rights of ownership of the land (for example, to legally use and transfer the title of the land/property), and must also assume the risks and responsibilities of a landowner (for example, any losses as a result of natural disasters and the obligation to pay property taxes).

On the other side of the relationship, a leasehold interest only exists when a landowner agrees to pass some of his rights on to a tenant in exchange for a payment of rent. If you rent an apartment, you have a leasehold interest in real estate. If you own a home, you have an ownership interest in that home.

TYPES OF REAL ESTATE Income-Producing

There are four broad types of income-producing real estate:

offices, retail, industrial and residential.

There are many other less common types as well, such as hotels, mini-storage, parking lots.

The key criteria in these investments that we are focusing on is that they are income producing.

1.Multi-Family Residential Property Multi-family residential property generally delivers the

most stable returns, because no matter what the economic cycle, people always need a place to live.

Nigeria needs 8million nits today

MULTY FAMILY RESIDENTIAL

Multi-family residential property generally delivers the most stable returns, because no matter what the economic cycle, people always need a place to live.

Nigeria needs 8million units today

OFFICE PROPERTY

Offices are the "flagship" investment for many real estate owners. They tend to be, on average, the largest and highest profile property type because of their typical location in downtown cores and sprawling suburban office parks.

RETAIL PROPERTY Retail Property

There is a wide variety of Retail properties, ranging from large enclosed shopping malls to single tenant buildings in pedestrian zones.

Many retail properties have an anchor, which is a large, well-known retailer that acts as a draw to the center. An example of a well-known anchor is SHOPRITE/GAME

Anchors would typically enhance the fundamentals of a property and make it more desirable for investment. Often, a retail centerhas one or more ancillary multi-bay buildings containing smaller tenants

INDUSTRIAL PROPERTY

Generally, they require smaller average investments, are less management intensive and have lower operating costs than their office and retail counterparts.

There are varying types of industrials depending on the use of the building. For example, buildings could be used for warehousing, manufacturing, research and development, or distribution. Some industrials can even have partial or full office build-outs.

10 NEW FOCUS IN REAL ESTATE

HOSTELS FOR STUDENTS HOSTEL FOR WORKERS CEMETRIES-BURIAL GROUND HOSPITALS HOTELS GUEST HOUSES AMUSEMENT PARKS GREEN PARKS STADIA AND SPORTS CENTERS EVENT HALLS AND GARDENS

WHY INVEST IN REAL ESTATE Three Things That Make A Great Real

Estate Investment

1. Savings - rather than buying properties at retail, you can acquire your investments 15- 20% below their market cost.

2. Profits - at the right time in the property market you can make good profits selling your development projects.

3. Security - if undertaken correctly, property development can be very lucrative. If you buy your development site well your investment will always be underpinned by the security of real estate in a prime position.

HOW TO INVEST IN REAL ESTATE PRIVATE

The first type of market you could participate in is the private market.

In the private market, you would be purchasing a direct interest in one or more real estate properties.

You would own and operate the piece of real estate yourself (or through a property manager), and you would receive the rent payments and value changes from that investment.

HOW TO INVEST IN REAL ESTATE PUBLIC Alternatively, you could choose to invest in the public real

estate market. You would be participating in the public market if you purchased a share or unit in a publicly traded real estate company, such as a real estate investment trust (REIT). UPDC REIT

If you buy a real estate security, you are investing in a company that owns real estate and manages it on behalf of the shareholders/unit-holders of the company.

As a result, your exposure to the real estate market is more indirect. A real estate security usually pays a dividend or distribution in order to send the rent payments that it receives from tenants to its shareholders/unit-holders.

EQUITY AND DEBT INVESTMENTS In addition to choosing your market, you need to choose whether to

invest in debt or equity.

EQUITY

An equity investment, on the other hand, represents a residual interest in the property. When you are an equity investor, you are essentially the owner of the property. You stand to gain a lot when the property value increases or if you are able to get more rent for your building.

DEBT When you invest in debt, you are lending funds to an owner or

purchaser of real estate. You receive periodic interest payments from the owner and a security charge against the property in the form of a mortgage.

Benefits of Real Estate Seminars

Here are the reasons why you should consider attending real estate seminars and workshops:

1. You can gain valuable knowledge and information about real estate investing.

2. Attending a real estate investing seminar can give you the opportunity to meet potential business partners.

3 Aside from expanding their knowledge, one of the reasons why most investors, particularly the more experienced ones, participate in workshops is to find real estate entrepreneurs who might be willing to enter into a joint venture with them.

4. You can also get the chance to get a mentor. If you're searching for a seasoned investor who can show you the ropes, a real estate workshop is the best place to start looking.

Real estate attracts hundreds of new entrepreneurs every year, each with the hope of making it big but the

practitioners say only those with passion for the profession do well in it.

JOHNBEDE ASSOCIATES

www.johnbedeassociates.com

johnbedeassociates@gmail.com

LAGOS.NIGERIA