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NatanelFlorens’ Rent-to-Own Targets 250,000 Housing Units Per Annum

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  • NatanelFlorens’ Rent-to-Own Targets 250,000 Housing Units Per Annum

NatanelFlorens, the pioneer of the rent-to-own model of homeownership, plans to provide 250,000 homes annually when the system gets to its peak.

The Executive Director, Fund and Investment, NatanelFlorens, Mr. Oguche Agudah said to achieve this they plan to work with 50 developers who, on their own, could build about 5,000 to 10,000 housing units per annum. But as things stand, they are looking for developers who can build 500 housing units annually.

He said the company believes it could achieve this in the next three years, saying “The volume will justify for everybody what the value is.”

Agudah said, “NatanelFlorens is a purpose-driven company that was set up with the primary aim of ensuring that every Nigerian has opportunity to own a home.”

The company’s flagship project is Rent-to-Own, a homeownership product that seeks to enable people own homes simply by paying their rent, and without equity contribution.

Rent-to-Own, he said would reduce homeownership deficit and make the property market more efficient, particularly in driving demand. “Our proposition is beyond rent-to-own. What we are trying to do is to reshape the market for efficiency. The market today is distorted and that is why people can’t have homes. If you give Nigerians an opportunity to pay their rent and own their homes, they will embrace it.”

NatalenFlorens, he said had demonstrated this in the last two and half years to see that Nigerians actually embrace rent-to-own, after which they would define the roles of developers, banks, capital market, investors play in the proposition. “It is about effective demand.”

According to him, the first thing they have been able to do “is to show that rent-to-own is the way to go; an alternative system for owning homes, adding that they have been able to create effective demand.
“Another thing we have been able to do is to engage local and international investment banks on alternative instruments for real estate and we have been able to create that effective demand.”

He said currently, they had a long waiting list of people that are hoping to get their homes through rent-to-own. “We have been able to stimulate the market and whet people’s appetite to know that they don’t have to continue on rentals and live without owning a home.”

He said once the system became efficient, government would not need to fund real estate, explaining that “the money that they will use to fund real estate will be diverted to more critical areas.”

He said it was not about figures but to recreate the market to be more efficient, to show to people that there are other ways they could own homes without the typical mortgage, “to show to the banks that there is a way to lend to this market without taking risks, to show government that there is another way to support homeownership without putting money on the table and these are the impacts that you will see resonating in the economy itself.”

He said the impact of the system on the economy is enormous, particularly in reducing corruption, stating that the first thing people who steal buy is a house or other types of real estate. “If I know that I can own a home just by paying my rent every year through my salary, then why should I steal?”

The rent-to-own initiative is slowed by low housing stock but that would soon be addressed, Agudah said. “Demand outweighs supply because we are not producing as quickly as possible.

“We are now moving to the next phase of our business model which is to partner with developers and start rolling out homes. “We are developing the market and what you have seen us do in the last two and a half years is to show the way out of the problem and the next stage is to jerk up the supply and for us to do that 50,000 units annually the funding requirement is about N4 trillion.

“Nigerian banks can conveniently find N4 trillion for real estate but they want to be sure that the market has low risk, so rent-to-own takes care of the demand end of it.”

The system, he said is attracting investors from off-shore, adding that “today we have a developer with us from Turkey that will build a minimum of 5,000 housing units per annum and they are looking for more to develop. We also have a partner from South Africa that is willing to develop some housing units.”

“All we are trying to do is to increase the supply end,” adding that they would sign an agreement with Real Estate Development Association of Nigeria (REDAN) to improve the supply end, and once this was done housing deficit would decrease.”

An interesting aspect of the rent-to-own is that people can sell their option if they want to relocate to another city.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

Transcorp Hotels Expand into Marketplace, Launches Aura to Connect People, Hoteliers, Others

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Transcorp Hotels Plc, on Thursday, announced it has launched a new digital platform, Aura, through which people can book accommodation, restaurants and experiences.

Aura, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.

It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc. Dupe Olusola said.

For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.

The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.

Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”

To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.

Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.

 

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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

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Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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