Real Estate Finance & Investment in Nigeria.
The Nigerian Real Estate sector is an emerging market; it has an estimated value of about N800 billion and is a continually growing market with an estimated growth rate of 10% to 15% per annum. The Federal Government of Nigeria has through its housing policy and particularly through the Federal Mortgage Bank of Nigeria (FMBN) indicated its intention to ensure a sustained growth of the market through policies aimed at encouraging the grant of mortgages. Indeed on the 22nd of November 2005 the FMBN signed a N100billion mortgage deal with UBA and Oceanic Bank.
REAL ESTATE FINANCE & INVESTMENT UNIT (REFI Unit)
Akinwunmi & Busari is one of the leading law practices in Nigeria in the areas of law relating to Real Estate Finance and Investment and has acquired the reputation of providing efficient and cost effective solutions to its clients.
Our Real Estate Finance & Investment Unit (“REFI Unit”) provides in-depth advice on all aspects of real estate transactions including sale and acquisition of property, financing and consequent security, construction contracts, residential and commercial development, leasing and portfolio acquisitions. We are significantly involved with many of our clients in the real estate investment portfolio planning, acquisition, construction financing, leasing and management of office complexes, shopping malls, hotels and residential houses/estates.
Our clients include financial institutions, institutional investors, pension funds, insurance companies, construction companies, venture capitalists, state and federal governments, real estate investment vehicles and private developers.
From transaction inception to completion, our lawyers go beyond the traditional role of document preparation and due diligence. They are dealmakers with business acumen who listen to and advise their clients as commercial stakeholders in the success of each transaction. They are skilled negotiators whose aim is to partner with clients from the outset of each transaction to add value and obtain the best result for the client. We offer a broad range of services, which include;
- Advisory Services in the acquisition, disposal and leasing of property and actual purchase and disposal of property on behalf of individual and corporate clients.
- Advisory services in the structuring of Real Estate Investment Special Purpose Vehicles.
- Advisory services to construction companies, contractors and private developers.
- Manage real estate portfolios on behalf of clients.
- Advisory services to individual and corporate real estate investors and financial institutions regarding financing options such as real estate investment trusts, asset backed financing etc.
- Procuring Certificates of Occupancy and Governor’s Consent to Land Transactions on behalf of clients.
- Preparing agreements in respect of real estate transactions such as;
- B.O.T (Build, Operate and Transfer Agreements)
- D. B. F. O. T (Design, Build, Finance, Operate, Transfer Agreement)
- L. M. T (Lease, Maintain, Transfer)
- B. L. T (Build, Lease, Transfer)
- Construction Contracts
- Real Estate Development Management Agreements
- Deeds of Assignments
- Lease Agreements
- Real Estate Finance Security Documents
Acquisition, Disposal and Leasing
The firm has an active practice in the acquisition, disposal and leasing of commercial and residential property on behalf of its clients. We assist our clients in the negotiation and consummation of leases to achieve competitive advantages and lower their transaction costs. We prepare and implement various types of leasing agreements for offices, commercial and residential properties, including the development of lease agreements tailored to particular needs of our clients.
The firm has also assisted its clients in acquiring land and other property from individuals, corporate bodies, State and Federal Governments by way of direct offer for purchase or by way of closed or open bids.
Real Estate Investment Special Purpose Vehicles
The REFI Unit advises on various modes of investing in Real Estate in order to maximize returns on investment for example, Real Estate Investment Trust (REIT) a hybrid product which combines the profile of a listed unit issuer and the activities of a property fund, investing effectively in property but generating an income stream as a collective investment scheme that invests primarily in real estate aiming to provide returns derived from rental income and proceeds of sales.
The REFI Unit also advises on Joint Venture Projects relating to real estate. This involves advising on the joint financing, operation and ownership of projects. This major form of project finance is usually between a multinational company who provides technical and managerial skills, equipments, some finance etc, while the government takes care of the local requirements such as concessions and in some cases finance and logistics requirements. However Joint ventures in real estate in Nigeria take various forms and occur between different types of partners.
Managing Real Estate Portfolios
The REFI Unit advises and manages its client’s real estate portfolio on their behalf. The unit assists its clients in perfection of title to their property, dealing with their tenants’ matters, acting as attorney to administer the property on behalf of the client.
The REFI Unit acts as administrators to the estate of its clients. The unit takes charge of the estate from obtaining letters of probate/ letters of administration, managing property of the estate and disbursing proceeds to beneficiaries.
Financing Options
The REFI Unit provides advisory services to its clients on financing options available when either purchasing a property or when the client intends to develop a property either for personal or commercial purposes. It also provides advice to corporate finance departments of investors and financial institutions intending to finance real estate transactions.
Perfection of Securities
The REFI Unit assist our clients to secure proper title to property by making use of the relevant statutory mechanism such as conducting searches at the relevant lands registry, procurement of Certificates of Occupancy, registration of relevant title documents, perfection of securities such as Legal mortgages, Leases, Deeds of Assignment, Powers of attorney, Debentures etc.
The new procedure for perfection of securities by obtaining Governor’s consent to Land transactions at the Lands Services Directorate in Lagos State has abridged the processing of such applications to 30 (thirty) working days. The major features of the new procedure include the following;
- The reduction of the statutory fees from 30% to 15%.
- The creation of a Tax Desk within the Lands Directorate.
- The publication of an Income Tax Assessment Guide.
- The approval of additional commissioners to endorse the application on behalf of the Governor.
- The issuance of a payment advice note on the statutory fees payable.
These features enable us to complete the perfection of instructions within a short period.
The REFI Unit has a long-standing cordial and professional relationship with the Lands Services Directorate in Lagos and other states in Nigeria, and also works closely with other professionals outside the firm to ensure that the team is well prepared to handle transactions from a wide range of sectors.
Real Estate Litigation
The REFI Unit is experienced in all facets of real estate litigation including Landlord/Tenant matters, construction, specific performance, adverse possession and injunction. The firm has significant experience in drafting settlement agreements, enforcing judgments obtained through settlements or trials, and enforcing regulation breaches collection procedures, property seizures, sealing and/or attachment of property.
Property Tax and Allied Charges
This division of the REFI Unit was set up as an advisory and enforcement division of the unit on matters relating to various property tax and other property related charges.
Members of the firm have extensive experience in issues relating to property tax, ranging from advisory services to the government on the drafting of the relevant property tax laws and also on the reform of the tax regime regarding perfection of property as security for loans, to the enforcement of property tax laws on behalf of the Lagos State Government and the enforcement of allied property charges on behalf of a Federal Government Agency.
While the firm has acted in the past 4 (four) years as counsel in the enforcement of the Land Use Charge(Lagos State Property Tax)on behalf of the Lagos State Government for collection of Land Use charges on properties in the State. One of its partners is the pioneer Receiver appointed by the Lagos State Government for the recovery of Land Use Charges.
The Firm has also acted as agent for the Nigerian Tourism Development Corporation (NTDC) in the collection of the Tourism Development Levy (a tax on all property across the nation on which there are tourist sites and hotels).
For further information contact:
Seyi Akinwunmi, Labo Adetunmbi or Seyi Ahmed
