Real Estate Sector Slows, Facility Management Spikes, Says Balogun

Fadekemi Ajakaiye

There is noticeable slowdown of the nation’s real estate industry that has affected its contribution to the nation’s GDP, but on the flip side, the facilities management sector has witnessed rapid expansion.

The Chief Executive Officer, Global Property & Facilities International Ltd (GPFI), Dr. MKO Balogun stated this at a parley with journalists in Lagos, recently.

Balogun shared some insights on the economy, the Real Estate industry, Facilities Management sector and on his Company – Global PFI Ltd. He stated that “The Real Estate industry has continued to slow down largely due to oversupply in commercial and retail sectors, inappropriate supply in the residential sector. The latest GDP figure shows negative growth of -2.68% at the end of October 2018 and the Q3 contribution to GDP dropped from 7.09% in Q2 to 6.88% in Q3.”

However, he said the facilities management sector “is rapidly expanding globally, regionally and locally with growing awareness, acceptance and the global market is changing with global players strengthening their presence in Africa with merges and partnerships. Clients expectation has increased and demand for FM value has also increased away from service.

“The out – going year will also go down as a significant year for the sector with the launch of the 4 FM ISO standards, ISO 41011:2017, 41012:2017, 41013:2017 and 41001:2018; to ensure uniformity in the way FM is seen, appreciated, valued and implemented by both clients and providers, with the new FM definition which states that FM is an organisation function which integrates people, place and process within the built environment with the purpose of improving the quality of life of people and productivity of the core business.”

On activities in the sector, he said “In Nigeria, we launched the National FM body – Association of FM Practitioners Nigeria, AFMPN, the final approval of the FM bill 2018, as well as the Federal Ministry Power, Works and Housing’s draft National Policy on Maintenance of Public.”

Giving his company’s background, he said “Global Property & Facilities International Ltd – GPFI, was established about 18years ago as the first fully defined and classified Facilities Management company in Nigeria. The company has over the years evolved through mergers, acquisitions, and share restructuring, from her humble beginning as FMC (Facilities Management Company of Nigeria) to WSP FMC after the partnership with WSP, the Global Engineering company, merger with Domme FM Ltd in 2012 and change of name in 2014 to Global Property and Facilities Management Limited.

“The company is gradually becoming a Pan African company with operations in major Africa cities of Nigeria, Ghana, Cote d’ Ivoire, Cameroon and Kenya. We are an ISO 2008:2015 certified company. We remain committed to providing world class real estate service to our clients all over Africa.

“As a company, we have grown well, improved, created new solutions, innovative ideas and support for our clients, suppliers and put our employees at the highest level of focus. We have created and sustained the following industry initiatives; Newsletter – Bringing global and local FM knowledge, news and ideas to Africa; Academy – ProFM Credential Africa center; Technical Training; Support for Industry; Social impact initiative; Creating maintenance economy; Introduced robots across all our work scope; Cleaning; Swimming pool Management; Gardening etc.”

The company, he said has also received some Awards, stating that “As a company, we have been recognized as the best FM company in 2018 in the following categories; Best Property & FM Company of the year 2018–Acquisition International, London; Best FM Company of the year 2018 – Real Estate Excellence Awards; Global Leading Quality FM & Infrastructure of the Year 2018 – Global Quality Awards; and Africa’s Most Innovative Leading FM company of the Year 2018 – Awesome Awards.

“As well as our CEO, in the following categories; Best FM CEO Award in Nigeria 2018 – AIA of London; Best FM CEO of the Year 2018 – Real Estate Excellence Awards; African FM Personality of the year 2018 – African Institute Leadership Excellence

“We will continue to drive the industry in Africa to attain Global standard through our work, learning and development, information sharing, conferences and seminar engagement etc.,” he said.

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