Pepkor, owners of clothing retail store, Pep and Ackermans brands, says it recorded a satisfactory results during the six months ended 31 March 2019 amid shrinking consumer wallet and challenging retail market. The company’s sales and earnings rose in the six months buoyed by market-share gains in clothing and merchandise. The clothing outlet also grew its market share in the period with the group’s retail store footprint expand to 5332 stores, including 164 new store openings during the six-month period.
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For most of the past 15 years listed property was the best performing local asset class. To the end of 2017, investors in leading property unit trusts had enjoyed annualised returns of over 15% for a decade. More recently, however, returns from this sector have fallen heavily. According to figures from Morningstar, the three-year returns for the majority of funds in the South Africa real estate general category are currently negative. Only four have delivered positive performance over this period, with the best eking out just 2.48% per year.
Nigeria’s real estate sector may suffer yet another setback as the total credit allocated to the sector by banks dipped consecutively for five straight years. According to the latest data on the banking sector’s credit provision to the private sector released by the National Bureau of Statistics (NBS), banks’ total credit allocation to Nigeria’s real estate sector declined again by N26 billion in the first quarter (Q1) of 2019.
An alternative to traditional office space, the flexible office market – made up of both serviced offices and co-working spaces – is expanding rapidly across the world with 23% average annual growth since 2013, according to Stanlib research.
A front line developer in the building industry, Mr Banjo Olajide, has lamented the high interest rates in obtaining mortgages. Olajide, who is a property development consultant, based in Port Harcourt, the Rivers State capital, noted that high interest rate was a major reason many Nigerians could not afford mortgage.
Nigeria may lack many things, but people abound. She will be the third most populous country in the world by 2050 with a population of 410 million, the World Bank estimates. Current population growth trajectory presents an opportunity for a demographic dividend from the expansion of its productive workforce given its youthful 193 million population with 41% below the age of 15. The big question for these many millions – can policy deliver growth per capita rather than growth in mouths to feed?
A sizeable number of real estate firms prefer pulling funds through equity to debt to execute projects given the risk-averse attitude and cautious stance of Nigerian deposit money banks to the sector.
The Minister for Infrastructure has invited more real estate firms to invest in affordable housing to meet the demand for shelter that is projected at 310,000 housing units by 2032.
As foreign capital continue to look in the direction of Africa, experts at Alexander Forbes Investments has backed private equity (PE) as the best asset class for funding economic growth on the continent.
International provider of affordable housing solutions, EchoStone, has earned EDGE certification (“Excellence in Design for Greater Efficiencies”) for 251 residential properties in its Peridot Parkland Estate. The certification, presented in Lagos by EDGE certifier thinkstep-SGS, marks the first residential housing development to be certified in Nigeria.