GSK Is Leaving Nigeria, Here Is A Look At Their Real Estate Assets

The Nigerian arm of the global pharmaceutical and biotechnology company, GSK, is officially exiting the country citing losses emanating from a forex crisis, and a stiff market competition. Subject to this, GSK-Nigeria is set to pay N17.42 per share to its shareholders. Notably, the firm currently holds N526.97 mn worth of real estate assets, representing 17.4% of its total assets as of H1:2023. These were measured using the cost model, with the land and buildings values amounting to N124.8 mn and N402.2 mn, respectively. Key to also note is that the value of buildings declined by 1.3% from FY:2022, due to depreciation.

Below is a breakdown of their  property assets and growth:

 

GSK-Nigeria has properties spread in Ilupeju, Lagos State and Agbara, Ogun State. These include the GSK House in Ilupeju and the GSK manufacturing site in Ogun as described below: 

 

• GSK House, Lagos

GSK House serves as the firm’s head office. It is located in Industrial avenue, a popular industrial area in Ilupeju and mostly harbored by manufacturers. The building has been owner occupied since its acquisition in 2007, however an unknown number of building blocks were leased out in July 2021:

 

• GSK Manufacturing Site, Ogun

GSK’s manufacturing site is located in Agbara’s Industrial Estate. While manufacturing activities at the facility were ceased in 2021, the land and building is still being held for an undetermined future use:

 

FMCGs and owner occupiers are among the largest industrial market drivers in Lagos controlling 90% of stock. 

Overall, Lagos’ industrial market is mainly dominated by FMCG’s and owner occupiers, who control approximately 90% of the stock fueled by the high demand for goods and services, according to our occupier analysis. Below is a breakdown of the industrial market occupier performance:

 

While GSK is ceasing its direct operations in the country, their assets are to be held for an unknown period. Nonetheless, their exit is a negative signal to growth prospects of the industrial sector within Nigeria.

 

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