UPDC Targets Expansion, N100bn Real Estate Fund as Profitability Rebounds
L-R: Head of Human Resources, UPDC Plc, Mr. Oluwatoyin Egwaikinde;Chief Commercial Officer, UPDC Plc, Mr. Priye Johnson;Company Secretary, Mrs. Kaloro Falake; President/CEO, PR Africa, Prince Dapo Adelegan;;Chief Executive Officer, Mr. Odunayo Ojo;Chief Financial Officer, Mr. Francis Falola; and and Head of Development, Mr. Olatunde Jajun, at the media briefing on development of the Company in Lagos yesterday
Bennett Oghifo
The Managing Director and Chief Executive Officer of UPDC Plc, Mr. Odunayo Ojo, has unveiled an ambitious growth strategy for 2026 and beyond, outlining plans for project expansion, a proposed N100 billion real estate fund, and deeper penetration into Nigeria’s middle-income housing market as the company consolidates its return to profitability.
Speaking during a media engagement on the company’s outlook for 2026, Ojo said the real estate firm had undergone a significant transformation over the last four years, driven by strategic diversification, operational restructuring, and a renewed focus on customer-centric development.
According to him, the company’s resurgence culminated in a landmark 2025 financial performance that saw UPDC return to dividend payment after a decade and record strong growth in profitability and share value.
“We want to tell our stories because we believe that if we don’t tell our stories, who would?” Ojo said, while thanking members of the media for their support in amplifying the company’s turnaround story.
Tracing the company’s evolution, he noted that UPDC, incorporated in 1997 and listed on the Nigerian capital market in 1998, has grown into an integrated property development and investment company with more than 47 estates under management and over 2,500 clients across residential and commercial properties.
He disclosed that the company has delivered over 1,000 homes, holds assets valued at more than N30 billion, and maintains over 300,000 square metres of land bank. Its hospitality portfolio also includes the 471-room Festival Hotel in Lagos, which he described as the second-largest conferencing hotel in the state after Eko Hotel & Suites.
Ojo highlighted some of the company’s landmark transactions, including the launch of the UPDC REIT in 2013, one of Nigeria’s earliest real estate investment trusts, as well as the 2020 acquisition of a majority stake in the company by Custodian Investment Plc.
He explained that one of the most significant strategic decisions taken by management was the diversification of revenue streams beyond traditional property development.
“Property development can be erratic. Sometimes you are up, sometimes you are down. We realised we needed alternative income streams that would sustain the business even when development activities slowed,” he said.
As part of that diversification strategy, UPDC strengthened its facility management operations, expanded into advisory services, and invested heavily in its hospitality business following the COVID-19 pandemic.
According to him, the company upgraded the infrastructure and power systems at Festival Hotel with investments running into hundreds of millions of naira to reposition the hospitality arm as a stable contributor to revenue growth.
Ojo said the company also deliberately shifted its focus from luxury developments in areas such as Ikoyi and Victoria Island to the middle-income housing segment, which he described as the largest underserved market in the country.
Citing Nigeria’s housing deficit estimated at between 15 million and 27 million units, he said UPDC had repositioned its product offerings toward affordable and middle-income housing developments, while also targeting Nigerians in the diaspora and institutional investors.
He added that joint venture partnerships with landowners had become a major pillar of the company’s expansion strategy, enabling it to secure large parcels of land for master-planned communities.
“We realised that one of the greatest gaps in the industry is infrastructure and development control. Buyers want organised communities where they can enjoy peace, security and proper planning,” he said.
Ojo noted that UPDC’s master-planned communities are designed to prevent indiscriminate commercialisation and preserve residential serenity through controlled development standards.
Reviewing the company’s 2025 performance, he disclosed that UPDC recorded a 208 per cent increase in share price appreciation during the year, rising from N1.49 at the beginning of the year to nearly N5 by year-end.
He further revealed that the company’s profit after tax grew by nearly 2.6 times, while group turnover reached N12.9 billion in 2025, marking the second consecutive year revenue surpassed the N10 billion threshold.
According to him, the facility management subsidiary also crossed the N1 billion turnover mark for the first time, ending the year with N1.6 billion in revenue.
He attributed the improved performance to sustained profitability, balance sheet restructuring, and contributions from business segments outside property development, including hospitality, advisory services, and facility management.
A major contributor to the company’s growth, he said, was the success of its Brompton City development project, which generated over N8.7 billion in revenue.
Ojo disclosed that Phase One of the project sold out within a short period, while Phases Two and Three are already more than 50 per cent sold. Plans are also underway for Phases Four and Five.
He said future developments, including “Project Alpha” and “Project Beta,” would further deepen UPDC’s footprint in the middle-income housing market with developments spanning between 30 and 50 hectares.
Looking ahead, Ojo said the company plans to return to the capital market through a rights issue and the establishment of a proposed N100 billion real estate investment fund aimed at financing property development and investment opportunities.
He noted that the proposed fund would build on the company’s experience with REITs while supporting broader participation in real estate investment.
“We believe that not everyone needs to own an entire house before participating in real estate. Through structured investment vehicles, even small investors can participate in the sector,” he said.
On affordable housing, Ojo identified high construction costs, weak mortgage systems, and low income levels as major barriers limiting access to housing for low-income earners.
He called for government incentives, including access to serviced land and tax support for developers willing to build social housing projects.
Despite the challenges, he affirmed UPDC’s commitment to supporting efforts aimed at reducing Nigeria’s housing deficit through strategic partnerships and sustainable development initiatives.
