By Moses Nosike

Edwina Deniyi is the financial and development Manager, TEA Group Limited with over 17 years in accountancy audits and she specialises in reviewing and maintaining multiple development projects within time scales.

In this interview she reveals the company’s strategy, strength and achievement in property development, and what developing countries can do to achieve same in the sector. Excerpts:

What is TEA Group all about?

TEA Group Ltd, is a three armed UK based property development company. ‘TEA IN’ Developments (SPV), TEA Construction and TEA Living, a property management company, which maintains the bespoke property solutions for all completed TEA developments post completion. It is a collective team with a wealth of experience, delivering residential developments in London, Europe and West Africa. At the heart of our sustainable approach to enhancing neighbourhoods. Celebrating the people, their stories and the culture in areas previously overlooked. TEA creates bespoke exit strategies for all its clients at different stages of the developments. “It questions assumptions, thinks deeply. It creates as a lifestyle, details and promotes good design with excellent

delivery.

For how long have you been into property business and your achievement so far?

We have been in business as TEA for a year now and individually in construction business for over 8 years. We have secured property investments worth over 12 million pounds for private clients and are currently on site in Romford and Mitcham in London UK. With About 100 units of the Spain and Portugal  apartments under conveyance for our Chinese investors.

Deniyi

What is the difference between property business in Nigeria and UK?

Asset building in the UK is much more main stream, people are much more eager to have property assets.

Have you got exclusive rights to sell a development’s properties in UK?

We own our developments; so we source our lands with or without planning, prepare planning permissions for our designs and build. TEA aims to maximize this lucrative and excellent opportunity by inviting interested investors to come on board and tap into this excellent client driven market.

What type of properties do you sell/develop in UK?

We develop blocks of flats and houses of 8 units to 100 units. We also sell singular houses and apartments based on client preferences. We also specialise in iconic properties in exclusive areas for private clients. investors have different entry figures, and they can get up to 40% profit share or on an agreed return on investment of up to 25% in 12 – 18 months. You may start investing from £20,000 to £10m.

What do you consider to be the factors that make a good property? investment?

So a BMV (Below Market Value) property deal is a property deal where the property can be purchased at a discount to its current market value.

Savvy investors will know some vendors will be so keen to sell their property quickly, they will offer it below market value. In real terms a speedy completion of the deal is more important ultimately than the final price. They may have the opportunity of buying their own dream home or may be re-locating and are short of time. It’s possible they could also be looking to release funds for a personal business deal or for a number of other legitimate reasons.

Market Value (MV) is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.

If you are a property investor seeking to expand your property portfolio and looking to do so by buying property at a discount to current value, then make sure you do your research thoroughly and that any potential deal is worth it financially in the long run. You have to be sure the price is definitely below the market value for that particular location.

You buy at a discount creating telling inbuilt equity and you can refinance or sell a few months later to take all invested capital back out. Or you could have a ready-made buy to let to give you continual returns on your shrewd investment. The property will appreciate and you’ll probably make a tidy profit. It’s a winning strategy for sure for not as easy to achieve as some experts would have you believe. The truth is you must have investment cash immediately available as there are only two main methods used to acquire such property – by purchasing from those who advertise their services to buy property quickly or by auction. The reality is BMV offers outside of auction are few and far between.

You sell/develop properties in Spain/Portugal for Nigerian investors, can you tell us more about the investment, the benefits and why people should invest?

Spain and Portugal have two of the most sought after migration investor programmes in Europe.

These countries both offer a golden visa scheme hereby a foreign national can receive a temporary or “golden” residence permit in the selected country in exchange for a sizeable contribution to that country’s economy. We will take a look at the similarities and differences between each programme as well as a final thought on which programme is better. Portugal and Spain offer the option in investing in real estate for a minimum of 500 thousand euros.

Portugal requires that the property investment be held for a minimum of 5 years. In other words, the property can not be sold before the initial holding period is over. Spain requires that the investment be maintained in other to be able to renew the residency permit although the real estate option is often the best investment choice due to the opportunity of return. Portugal and Spain offer other investment options. Portugal has an option as low as 250 thousand euros, when the funds are invested in national heritage or arts.

Spain’s cheapest option on the other hand is the investment in real estate for 500 thousand euros.

How can we improve the property sector in Nigeria?

Compliance, health and safety procedures, risk assessments are a must and will need to be standardised and enforced. This is why TEA recognises that development of buildings is carried out in several phases, all involving hazard awareness, uncertainty and risk control conscious approach to each project. Our projects will be making a vital contribution to housing supply in the local area, with this, we recognise the need to manage the risks of being involved in developing new properties for sale.

How profitable is the investment, the returns and minimum of investment?

Mortgage 152.000,00, 4% Stable Growth Rate -1,25% above Euribor Mortgage Term. Payment over 25 year term.  1,25% – € 177,981 = 3,64% – € 234,740.

How is secured is the investment and what about the maintenance of the property?

Five year renewable rental guarantee.

Can people have a permanent visa for investing in Spain/Portugal?

Obtaining citizenship successful applicants of both countries golden visa programmes are initially issued with temporary residency visa for a period of 5 years.

Who can be included in the golden visa application?

For Spain the investor’s spouse, children under the age of 18 as well as dependent parents can be included. For Portugal, allows a spouse and dependent children ( under 18 or still completing studies)