Activity in Afriland Properties, an NASD listed real estate company, has picked up over the past 18 months as the company pushes to optimize its portfolio through renovation and development projects.
After the completion of Raymond House in Q1:2018, properties in Afriland’s portfolio that have been earmarked for some development activity during 2018 include those located on Ahmed Onibodu Street and Waziri Ibrahim Crescent in Victoria Island, Lugard Avenue and Club Road in Ikoyi, Abagana Street in Port Harcourt and Akinloye Layout in Bodija, Ibadan.
The market for renovations and Grade B properties appears to be a more appealing segment of the office sector in an environment with surplus supply on the higher end. The ability to bring the product to the market faster and at a lower rate is attractive. Grade B properties, however, have not had it easy over the past 24 months, as the improvement in the specification of buildings available has sent all those which are older, down a pricing level.
Here are a few details on Afriland projects we are currently tracking:
- Raymond House, a c. 6,000sqm property on Broad Street in Lagos Island. Renovations by Cappa & D’Alberto commenced year-end 2016. The renovation was completed during Q1:2018 and the building is currently being leased at N45,000/sqm/annum. Afriland intends to move to this property from their office on Etim Inyang Crescent in Victoria Island.
- A renovation of their property on #43 Ahmed Onibudo Street is also nearing completion. Depending on the specification, asking rents for properties along this street start at N45,000/sqm/annum.
- During Q1:2018, piling works for a commercial development where Afriland was listed as the client also commenced on a site located at the corner of Ajose Adeogun Street and Abibu Adetoro Street in Victoria Island.
Afriland has a portfolio size of over N10 billion and is one of the largest land banks in Nigeria, according to their website. Their principal lines of business include Property Development, Property and Facilities Management, Project Management and Property Acquisition and Sales.