Tayo Olaleye, Abuja
Nigerians have been urged to take advantage of investment opportunities in commercial real estate, especially with the presence of Hotel Development/Management investment company which gives opportunity to buying hotel slot for long or short term deals.
According to the Managing Director, Dimple Towers, a Hotel Development and Management Investment Company, Richmond Okorie, the interest of foreigners in co-owning world class hotels that talk about Africa, as against Nigerian, is very alarming, despite evident inflation hitting money saved in banks, explaining that money depreciates in terms of value, if not invested.
With countries like Dubai having rate of interest on hospitality investment as 7.5 per cent and Nigeria at 25 per cent per annum, Richmond further explained that investors are drawn to the country, outsmarting citizens who supposedly are intended benefactor of the scheme.
He advised that the residential segment of real estate, which is popularly engaged may take longer years for owners to break even, considering the diversity of tenants and other factors.
He said: “Commercial Real Estate should be considered when embarking on an investment plan as It appreciates faster than residential in terms of return, having one of it’s features as everyday cash flow.”
The MD, Dimple Towers, noted that a 3-4 star hotel, which sells for $100 abroad, would sell in exact form, for not less than $250 in Nigeria. He added that there was indeed a deficiency in terms of supply of upscale boutique hotels in the country which may be considered good reasons for investment.
Dimple Towers, according to him, understands that it is almost impossible for a middle class to own an entire hotel in Nigeria, thereby deemed it worthwhile for co-ownership, to encourage more people plan for the future.
He said, “individuals with the plan, can own rooms, getting 16-20% returns on investment, even as they enjoy value appreciating in years, without having to deal with tenants or service charges as in the case of Residential Real Estate.
“With as low as N500,000, slots can be own, earning 25 per cent on investment as a short term deal while the long term plan prescribes buying rooms worth about N20millon which can be spread within a year with initial 20% deposit of earn not less than N4million every other year.”
Whilst advising Nigeria citizens to be part of world class hotels that would speak about the country, Richmond said, the company’s initiative to float both short and long term investment opportunity, is a first of its kind in Nigeria and would help project a good image, as hotels, he said is a core site for tourists.