By Peter Egwuatu
Haldane McCall, has disclosed its plan of pursuing a disciplined growth strategy that combines residential property sales with recurring hospitality income to sustain profitability across economic cycles.
The Group Managing Director, GMD, Dr Edward Akinlade, who disclosed this in Lagos, stated that the real estate and hospitality group deliberately balances one-off cash flows from property sales with stable earnings from its Suru Express Hotels portfolio to strengthen liquidity and balance-sheet resilience.
According to him, “Property sales provide upfront capital for growth, while our hotel operations deliver predictable income that supports financial stability.
“Capital is being deployed into high-potential residential and hospitality projects, including the 1,200-unit Majidun Estate in Ikorodu and the expansion of Suru Express Hotels. All investments are subjected to strict feasibility and return-on-investment tests to protect margins and long-term shareholder value.”
To fund expansion, shareholders have approved a N250 billion debt issuance programme, structured in tranches to align borrowing costs and repayments with project cash flows. The funding will be complemented by a rights issue, allowing existing shareholders to participate proportionately while limiting dilution.
“Suru Express Hotels continues to record steady growth, supported by rising occupancy rates, standardised operations and cost discipline. The hotels are located in high-demand Lagos corridors, including Ikeja GRA, Ikorodu and Surulere, with expansion planned in additional Nigerian cities. The hospitality segment is expected to contribute an increasing share of group earnings over the medium term as new hotels come on stream.
On the residential side, Majidun Estate remains the group’s flagship development and a key future revenue driver. The first phase of the project is expected to be delivered within 12 months. Completed developments include residential projects in Ketu, Lagos, and Porto-Novo, Benin Republic” he said.
Akinlade said the company is also engaging federal and state governments on public-private partnerships to address Nigeria’s housing deficit, particularly in the affordable segment. These collaborations may include land provision, infrastructure support and access to mortgage financing through national housing schemes.
Haldane McCall is selectively evaluating expansion opportunities in West Africa, including Ghana and Benin Republic, with any international projects to be phased and subject to strict risk and return criteria.
The group maintains a dividend policy of paying out 30% of net profit, underpinned by recurring hospitality income, phased project delivery and disciplined capital allocation, Akinlade said.