During the African Chapter’s first Global Real Estate Institute GRI, Propertygate Development and Investment PLC’s Managing Director and Chief Executive Office Mr Adetokunbo Ajayi, spoke of measures to enable real estate developers in African continent raise funds internally rather than over-depending on foreign investors to execute their housing projects.
The meeting dubbed “Trends Shifting in Real Estate Capital Flows in Sub- Sahara Africa was held in London.
Mr. Ajayi advocated the use of Real Estates Investment Trusts (REITS) as a potent window for enhanced financing of real estate investment.
He further advised real estate operators in the Africa to explore funding locally from an array of financial outlets such as pension funds, insurance companies and the capital market by leveraging REITs instead of solely depending on foreign investors for funds, real estate operators in the African continent should explore funding opportunities in.
He said that instead of dedicating their time to approach foreign investors who need a lot of persuasion become they come on board; the players in the continent should look inward in order to relieve the dependence on foreign funding. REITS could be used a channel through which Investments from local institutions like pension funds, insurance companies, and capital market, can be boosted.
According to a statement from Propertygate, the discussion at the London meeting focused on how Africa compares to other emerging markets of the world, while participants considered the impact of regulatory and policy changes, and obstacles preventing flows of foreign capital into Africa.
Apart from the current economic challenge of the continent which has turned off investors, the meeting observed lack of liquidity in the African market and absence of secondary market. However, with countries like Ghana and Zambia beginning to pick up and liquidity in the exit market believed to be deepening, it is believed that the status quo might change.