This Day (Lagos)

6 February 2013

Nigeria: UPDC Floats N30 Billion REIT as Index Rises 1.16 Percent

Investors will as from February 19 have the opportunity to diversify their portfolio as the Initial Public Offer (IPO) of UACN Property Development Company Plc (UPDC)'s Real Estate Investment Trust (REIT) will open for subscription.

The REIT, which is sponsored by UPDC, a subsidiary of UAC of Nigeria Plc, is offering 3,000,000,000 units of N10 per share to raise N30 billion.

Speaking at the completion board meeting in Lagos yesterday, Chairman of the UPDC, Mr. Larry Ettah, said the REIT, which would be managed by FSDH Asset Management Limited, would invest primarily in a diversified portfolio of quality residential and commercial real estate property in Nigeria.

According to him, its principal targeted assets were investments in properties in prime locations within Lagos, Abuja and other major cities in Nigeria.

Ettah noted that the offer was timely even as he expressed confidence that the REITs would be fully embraced by both local and foreign investors.

"We believe that this is the right time to come into the market, of course, things have been looking up in the market, and it is wise for us to come in at this time. The company is looking at some huge projects at this time, and we will use these funds to be raised from the IPO to actualise these projects, " Ettah said.

Speaking in the same vein, the Managing Director of the company, Mr. Hakeem Ogunniran, said that investors in the REIT will enjoy benefits such as immediate investment income, stable and regular distributions of dividends and exposure to a diversified property portfolio of income generating assets.

He noted that UPDC was a company that had been around for a long time, assuring that it had all it take to deliver on their promises made in the prospectus to investors.

Meanwhile, trading at the stock market remained bullish yesterday with the Nigerian Stock Exchange (NSE) All-Share Index appreciating by 1.16 per cent to close higher at 33, 065.14.

Positive investor confidence lifted the prices of 60 prices to shoot the year-to-date growth of the index to 17.76 per cent Tuesday.

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