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UPDC gears for unbundling, repositions for growth

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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 order to allow her operate as an independent group; UACN Property Development Company Plc (UPDC) is poised to expand with greater flexibility and a solid foundation for growth.

With a simplified structure, strengthened capital base, technology-driven approach, expert management team and well-defined development strategy providing investors considerable growth potential and opportunities for generating attractive long term returns in the Nigerian real estate sector; it held a virtual closing gong ceremony to mark its successful N16bn Rights Issue at The Nigerian Stock Exchange.

The offer, which was oversubscribed, indicates investor confidence in the company’s future growth prospects and proceeds from the Rights Issues have been used to improve UPDC’s capital structure and position the company for growth. A foremost real estate development firm with market-leading facilities management business, UPDC boast of a team with deep experience of successful operations in the Nigerian real estate sector across multiple segments including residential, commercial, hospitality, and retail.

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

Folakemi Fadahunsi, the Finance Director 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 portfolio by actively selling lower-yielding assets to provide further liquidity to fund new developments”.

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 of this year, 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.


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