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UPDC raises N16bn, gears up for unbundling, repositioning

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From left to right: Mrs Bolarin Okunowo, Investment Executive at UAC; Mr Bola Adeeko – Divisional Head, Shared Services, Nigeria Stock Exchange; Mr Fola Aiyesimoju, Group CEO UAC Group; Deborah Nicol – Omeruah, Deputy Chief Executive Officer, UPDC; and Folakemi Fadahunsi, Finance Director UPDC at the unveiling of the UPDC Rights Issue in February 2020.

By Juliet Ebirim

UACN Property Development Company Plc (UPDC) held a virtual closing gong ceremony to mark its successful N16bn Rights Issue at The Nigerian Stock Exchange on Tuesday 2nd June 2020. The offer which was oversubscribed indicates investor confidence in the company’s future growth prospects. Proceeds from the Rights Issues have been used to improve UPDC’s capital structure and position the company for growth.

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“We are grateful for the confidence exhibited by our loyal shareholders and continued patronage from our customers,” said Deborah Nicol-Omeruah, the Deputy Chief Executive Officer of UPDC. Nicol-Omeruah further stated, “The Company retains unparalleled market knowledge and track record, more than N20bn in assets, strong governance and an excellent facilities management business. The team at UPDC is focused on leveraging these strengths to drive stakeholder value creation”.

Folakemi Fadahunsi, the Finance Director of UPDC added “It is an exciting time to be a UPDC shareholder. The Rights Issue has resulted in improved cash flow, as finance cost has reduced from N4.8bn in 2018 to N700m. We will continue to reposition our property portfolio by actively selling lower-yielding assets to provide further liquidity to fund new developments”.

The next stage of UPDC’s strategic initiatives is it’s upcoming unbundling from UAC which will allow the platform to operate as an independent group, and UPDC looks to a future with greater flexibility and a solid foundation for growth. The company’s simplified structure, strengthened capital base, technology-driven approach, expert management team, and well-defined development strategy provides investors considerable growth potential and opportunities for generating attractive long term returns in the Nigerian real estate sector.

UPDC is set on a path to profitability, with an aggressive development strategy which will see the commencement of its first new project under its new management in Q4 2020. The proposed residential development, known as Festival Flats is designed to be a 30 unit block of 2-bedroom apartments, targeted at the local middle-income market. Located next to UPDC’s popular Festival Complex in Festac which currently includes the Festival Mall, Festival Hotel, and The Residences Apartments, the proposed new development will offer buyers a lifestyle where they can live, work and play at their doorstep.

Vanguard

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