The Impossible Brief Planet

"The Impossible Briefs Planet"

Credit - d2r4pw5uddxm3r.cloudfront.net 

I'm sure you have received requests like "Filling Station in VI or Ikoyi; Open Budget; Buyer wants to inspect first thing tomorrow morning"? 

Just as you have also seen "Request for 10,000 sqms JV in Victoria or Ikoyi; No Premium; only direct mandates should contact me?"

Welcome again, to one of our everyday realities - "Agents coming to the market with impossible requests" yet going about reposting the message in 2,000 WhatsApp groups to be reposted to 1,000,000 agents all over town
- so let's do the numbers: 

There are officially ONLY 10 Fuel Stations in Ikoyi/VI - 

* Forte Oil (3) One on Bank Road and 2 on Awolowo Road; 

*Oando (2)/Both on Awolowo Road; Mobil(3)/One on Awolowo Road; One on Ahmadu Bello; and One on Ozumba Mbadiwe; 

*NNPC (1)/On Kingsway Road; MRS (1) on Ahmadu Bello Way; 

the question is "which of these owners will sell such a huge income-producing asset in such environs?"

Well, you don't have to believe me - I am sure "you have been embarrassed a couple of times already" that some agent promised to take you and your client (usually the so-called mandate) to inspect these properties in the same way, the same "crew" couldn't deliever you to a meeting with the Owners - you see, this is not so much about whether "these properties can be sold" rather it is about "How the requests are thrown around as though there are actually about 200 of such assets just strolling around in the market."

Then, enter "the JV experts" - I call these guys "the official time wasters of the Island Briefs" - they call you for JVS in IKOYI and VI in the range of 10,000sqms to 20,000sqms - once again, let's do the numbers here - how many properties in these environs are up to these numbers? How many developers in this market - even the Oloyinbo Multinationals have built on 10,000sqms in VI/Ikoyi? And would own 10,000sqms and "commit same to an unknown developer on a partnership basis? Perhaps some of these guys don't know "the value of money" to make these requests? It just cost a foreign developer $100m to build an 18,000sqms Gross Lettable Area (GLA) office space on ONLY 4,000sqms land area in Ikoyi!

Let's talk of this developer that has made this request of 10,000sqms to 20,000sqms from you - 

what is the valuation he is attaching to the land? 

And what is the asset base of this developer company? 

How much cash is he able to access from local/foreign banks/personal assets/savings to build such a project he is intending? 

If you build 4,000sqms at the rate of $25,000 per square meters, it would have brought the development of a 10,000sqms space to an average of $250,000,000!

‎

I sometimes get the impression that some of these agents see a Developer that has built 10 Unit Terraces in Lekki axis and begin to see him as a guy that can also build one of these huge assets in VI/Ikoyi? 

You ask them for "the profile" of this developer and they tell you "a local company has a partnership with a company coming in from Dubai" - where is the company? Sorry, they have "a Mandate" - all manners of cock and bull stories being thrown all over the place.‎

And as always, tons of these guys "don't like to be advised" - they will refuse to learn what they absolutely do not know - and when they hear of "a 36,000sqms JV in VI" they don't understand it requires $500m to develop that project; how come you can't ask the Landowner "why he has not been able to develop the project for the last 7 years?"

Guys, pay attention to the deals you can do - there would be "miraculous deals" but they are not likely to just jump into the market every other day - use your energies wisely; and stop dispensing your valuable time "chasing shadows!"

Have a nice weekend ahead‎ and an even more prosperous new week ahead - as for me, I am taking the day off to do some movies.

Best regards‎

Favour B. Afolabi

President/CEO,

Viva Real Estate

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