On the 2nd of June, 2020, UACN Property Development Company Plc (UPDC) held a virtual closing gong ceremony to mark its successful N16bn Rights Issue at The Nigerian Stock Exchange. The offer which was oversubscribed indicates investor confidence in the company’s future growth prospects. The company announced a restructuring plan in September 2019 and proceeds from this Rights Issue are expected to improve UPDC’s capital structure and position the company for growth.
Commenting on the recent development, Deborah Nicol-Omeruah, the Deputy Chief Executive Officer of UPDC said:
“We are grateful for the confidence exhibited by our loyal shareholders and continued patronage from our customers”
Folakemi Fadahunsi, the Finance Director of UPDC added:
“It is an exciting time to be a UPDC shareholder. The Rights Issue has resulted in improved cash flow for UPDC, as finance cost has reduced from N4.8bn in 2018 to N700m. We will continue to reposition our property portfolio by actively selling lower-yielding assets to provide further liquidity to fund new developments”
Next Steps for UPDC:
The next stage of UPDC’s strategic initiatives is it’s upcoming unbundling from UAC which will allow UPDC to operate as an independent group. UPDC looks to a future with greater flexibility and a solid foundation for growth.
UPDC plans to commence the construction of its first project under its new leadership in Q4:2020. The proposed residential development known as Festival Flats is designed to be a 30 unit block of 2-bedroom apartments, targeted at the local middle-income market. It is located next to UPDC’s popular Festival Complex in Festac which currently includes the Festival Mall, Festival Hotel, and The Residences Apartments, which consists of 150 units of 1 and 2-bedroom apartments on 3 wings and 8 floors. Over the past 5 years, we have visited and documented up to 700 developments across Nigeria. You can find more information on project teams and building specifications for these ongoing projects on estate intel.