The Chairman, Haldane McCall, George Oguntade, SAN, in this interview with Kayode Tokede said the planned listing of McCall on Nigerian Exchange Limited will supporting government in bridging housing deficit in Nigeria. He also spoke on challenges facing the real estate and hospitality sectors in Nigeria.
Congratulations on the successful Board Meeting. Can you give us a background to how you became the Chairman of Haldane McCall Plc?
I have been a lawyer for over 35 years. Haldane McCall is a company that is going public very soon. My father, Honourable Justice Oguntade, who was a retired justice at the Supreme Court and former Nigeria high commissioner to the UK nominated me to be his representative as the chairman of Haldane McCall due to his old age and perhaps the inability to move around. Those are the circumstances I have been able to chair the company.
Haldane McCall is believed to have a trajectory of achievements over the years. Can you kindly give an? insight?
The company, before I assumed duty as the chairman has had some success stories. It was incorporated in 2020 as a private company and it became a public company a year later. I have come at a very important moment when the company is looking to get quoted on the Nigeria Exchange Limited (NGX). The intention is to make a success in the listing. We wanted to attract as many Nigerians to invest in our company and ensure they derive long-term value by associating with us. I have been here for four months and we are making progress.
What are those attributes that distinguish Haldane McCall from its peers?
Haldane McCall is essentially operating in two sectors- hospitality through Sure Express Hotels and real estate through Suru Homes. Haldane McCall as i said earlier, is planning for listing on NGX. Given the experience of the board of directors and the fact that we understand what is needed to be done as far as a major real estate development company in Nigeria, we shall generate value that sets us apart from our peers in Nigeria. Everyone in the company is committed to ensuring we take that pride of position in Nigeria.
How can the Company support the government to bridge the gap of housing deficit?
It is one of the key areas we are looking at when we are listed on NGX. Hopefully, we will be able to arrange funds that will give us the financial backing not only to support the federal government but Lagos state government in bridging the housing deficit. We realized that there is a massive housing deficit not only in Lagos but also in Nigeria. To be able to assist either states or the federal government, you will need massive financial backing from the issuance of funds. Of course, it is easier once you’re a listed company.
What fundamentals does Haldane McCall have for investors amid the proposed listing?
Now is a good time to invest in Haldane McCall. We are hoping to get listed by the end of the first quarter of 2024. If an investor invests now, they will buy our shares at N3.50 per unit which allows them to make immediate profit by the time we list at N3.84 per unit. We are not here for a short haul but for a long haul. The company has put in place a very attractive dividend policy where we intend to pay 30 per cent of our profit to our shareholders at the end of every year. Apart from the share appreciation that comes from investing in us, there is also an opportunity to earn an attractive dividend which investors can either take by cash or reinvest in the company.
The Company is in the process of securing regulatory approvals to list its shares by Introduction on NGX. Why do you think it is necessary?
The idea is that to fund our expansion programmes, we need an opportunity to access funds, and that can only come when you’re listed as a public company where you can directly ask domestic and foreign investors for funds through investment in the company.
As an advocate of corporate governance, to what extent is the Company adhering to the principles of corporate governance?
To be listed on NGX, a company has to present a robust corporate governance policy and we are fully aware of that and recognize of our responsibilities. I can assure the investing public that Haldane McCall has a very strong corporate governance policy.
What gives the management of Haldane McCall boldness to list amid some companies delisting?
Two things are responsible: First, we believe in our brand. The Haldane McCall brand will stand the test of time. Second, we believe in the fundamentals of our company. We understand the market, and system and believe that Nigerians can benefit from their association with us. Of course, some companies are delisting, while some are leaving Nigeria but other companies are coming into Nigeria every day. I believe very strongly in the fundamentals of the company and aside from that, nothing else matters.
The Nigerian business environment is believed to be tough. What do you consider as the topmost challenges facing the operators in the real estate and hospitality business and the way forward?
In the areas that we operate, the biggest challenge that we discussed at our board meeting is that of infrastructure. We are talking about multiple taxation by different government agencies. It needs to be streamlined, otherwise; companies cannot do business profitably in Nigeria. The next issue is the power supply. Poor power supply has killed so many businesses and still killing businesses in Nigeria.
It is a matter of striking a balance and that is where you need a company that can innovate. A company needs innovation and ideas to be able to successfully navigate Nigeria’s business environment.
Of course, it is difficult and it does not mean you cannot succeed. It is about putting the ideas together and moving forward. At Haldane McCall, we have plans in place to succeed amid challenges.
How are you surviving foreign exchange challenges?
We as a company do not believe in taking loans from banks because we understand that we operate in a very difficult environment. I am aware of some companies that have taken loans from banks and gone under for inability to service those loans for one reason or the other.
We are fortunate in the sense that we are able to raise funds in-house to be able to fund our businesses. As a Nigerian company, we are affected by foreign exchange difficulties. But again, there must be progress and the foreign exchange challenges cannot be an excuse. We just have to manage our resources and programmes. We are moving forward despite the challenges.
Where do you see Haldane McCall in the next 10 years?
I see Haldane McCall Real Estate as the number one real estate company in Nigeria. Although we have competitors, in five-10 years, I see the company right up there and becoming a reference point for real estate in Nigeria both in the hospitality side and real estate development side.
