‘Nigeria’s business environment very hostile to real estate players’

Mrs. Oluchi Arinze is the Managing Director (MD) of Kirkwood Properties Limited. The graduate of Economics from Imo State University, Owerri, who has taken several courses in marketing and leadership, has cognate experience in corporate matters having worked in banks and other financial institutions for years. In this interview with ONYEDIKA AGBEDO, she shares some tips that have helped her to succeed in a male-dominated sector, among other issues

Tell us a bit about yourself
I am a graduate of Imo State University. I have a Bachelor’s Degree in Economics, and a Postgraduate Level 7 Diploma in Strategic Management and Leadership, from the Metropolitan School of Business and Management in the United Kingdom. I have undergone several short courses in marketing, sales, and leadership at the likes of Lagos Business School and others. I have several years of post-university work experience. I was a banker for many years in one of Nigeria’s tier-one banks. While I worked, I gained extensive insight into areas such as product development and management, strategic planning and management as well as people management and development. I understand how to multi-task and deliver on targets. I’ve also learned useful soft skills in running an organisation.

You started in banking before veering into real estate, where you’ve made a mark. Take us through your journey in the sector.
My fascination with real estate started as a child when I watched my father invest and acquire properties. He also never failed in educating us on the needs and benefits that come with it. Luckily, I got married to a conscientious entrepreneur, a renowned real estate business investor too. This was what eventually fueled my passion to move from banking to real estate. My husband became my role model. He taught me practically all I needed to know to be successful in this male-dominated industry. He is the chairman of Kirkwood Properties Ltd. He still guides all of my investment decisions and the reward has been huge.

Lessons learnt in the banking sector must have come in handy after you cross-carpeted to the real estate sector. Didn’t they?
While I was in the banking sector, I learnt that no experience is a waste. My banking experience taught me dedication, discipline, hard work, resilience, and above all, people management and exceptional customer service skills. I also learned investment skills and accessed banking facilities. These have undoubtedly come in handy in satisfying my customers’ needs and expectations.

What can the Nigerian government do to boost the real estate sector?
The government is the biggest enabler of private businesses. For the real estate space, the enablers are varied, but I will speak to a few. 
 

What do you make of the allegation that corrupt government officials are now laundering money through real estate?
I do credible business and I don’t know of money laundering in the real estate business. However, I’m not competent to speak for everyone in the industry. But there is hardly any sector that the anti-corruption agencies do not investigate. So, if there are people laundering money in the real estate sector, I’m sure the anti-corruption agencies would smoke them out.

Properties are very expensive in major cities hence most Nigerians feel that real estate developers are only driven by profits. How true is this allegation? 
I understand and appreciate how those categories of potential investors feel. But quite frankly, it’s not the making of real estate developers. For me, my joy is to see people buy my properties. As much as possible, I build pocket-friendly properties and my clients are excited about most of my offerings. However, the business environment is very hostile to real estate players. Plots of land are pretty expensive, but even beyond the cost, there is so much red-tapism from government officials. These cost you more money. There is also the high cost of funds from banks and other lenders. You borrow at over 25 per cent interest rate and have a very short repayment period. What do you do with the banks breathing down your neck? 
 
The cost of building materials keeps rising due to the rising cost of foreign exchange. You also need to pay for labour and indeed pay the local communities as well. If you aggregate all these costs, you would appreciate why properties are valued. So, sometimes we just sell to recover our cost and get a little margin.
 
But I will rather encourage people to get involved in real estate. The value of property in Nigeria increases quite significantly over time. When you get into real estate, it allows you to benefit from the capital invested in that property. It’s tangible; it’s physical. It’s there and you see it appreciating. It’s a source of steady income. There’s nothing like a business running on autopilot. In the real estate business, when you deliver good value, your customers do the marketing for you.

How are you carving a niche for yourself now that the sector is looking like an all-comer affair?
Kirkwood Properties Limited is a leading real estate development company, with our unique contemporary style and total passion for connecting people with property. We aspire to provide the ultimate real estate experience for today’s modern clients. We are not limited by traditional real estate boundaries when it comes to selling our prestigious homes. Instead, we are always finding unique and innovative ways to satisfy our clients and be at the forefront of the real estate market.
 
As a developer of residential properties, we have successfully provided our clients and investors with above-average returns due to our keen insight into the real estate market.

It must be tough navigating the terrain of a female CEO and becoming successful. How are you doing it?
At first, it wasn’t easy because it is a male-dominated industry. But I knew that I wanted to add value to the industry. I stayed focused on the value proposition that we offered. We developed bespoke properties that gave us space in the competition. So, no one looked at my gender; all they cared about was the value that we brought to the industry. The rest they say is history. But I must say that I never felt limited, or intimidated in any way. I think my training and experiences also helped me. By the way, my husband provided all the physical and emotional support that I needed to thrive.

What’s your advice to females aspiring to be CEOs?
Don’t let anyone or anything stop your shine. Never lose yourself as an individual; focus on your life goals, and always have a can-do spirit.

What do you like most about entrepreneurship?
In entrepreneurship, the income is uncertain. There are risks and there are no fixed working hours, but I enjoy all that. The independence, personal growth, and being able to pursue my innovative ideas are great motivations for me. I have also been able to create jobs and take people off the streets, in addition to adding value to the Nigerian economy through the taxes that I pay and unemployment reduction. I enjoy what I’m doing. Being an entrepreneur is challenging, but it’s fun at the same time… this adrenaline comes with it. I’m a sucker for success. 
  
Being an entrepreneur also gives you a relatively flexible schedule. You have autonomy. You are more interested in your work because you are responsible for your business. You don’t have a shortage of motivation to work hard to ensure the business is successful. You have the chance to do what you like and build a career that aligns with your own beliefs.

What tips that have helped you to stay afloat can you share with prospective real estate business owners?
Understand the market. Understand government policies and regulations at all government levels. Avoid procrastination; be diligent; be disciplined, invest wisely, strive for perfection, and you must always buy legitimate land and properties.

What prospects do you see for the sector, especially with President Bola Tinubu taking the reins?
I am positive about this new administration. That Nigeria needs to be better is indisputable, and I am certain that the present government understands the huge expectations demanded from it by Nigerians. I believe that this government will work hard to deliver on its campaign promises. 

Inflation has had a great impact – negative in most cases – and no sector of the economy has escaped its tentacles, not excluding the real estate sector.

However, I believe the new government is out to serve the people and I presume that was their intention for opting to be elected. Through service, tenacity, and the collaboration of Nigerians, I’m hopeful that this administration will foster economic growth by tackling the current inflation to the benefit of all.

What’s your take on the incessant building collapse in the federation?
It is very saddening. Fortunately, there are relevant government agencies responsible for ensuring that standards are met. They are doing their job. I believe they are out there clamping down on people who are building death traps. 
 
There is no difference between quack doctors butchering and wasting lives and a developer building death traps. When you get a real estate development wrong, you risk people’s lives. 

So what pitfalls must aspiring real estate entrepreneurs avoid?
Before you go into the purchase of land to start your development, do your research and find out how the market is going so you don’t just tie your money down in something that won’t yield profit for you by the time you get a property. If it is in Lagos, do a diligent search at Alausa to ensure that the land is free from government acquisition. Ensure it has the proper title, and make sure the documentation is in order. Get the necessary government approvals. Make sure you get a competent team and avoid using quacks. Use someone with a good track record. Employ and work with competent professionals and focus only on your expertise. Avoid the temptation to go for low-quality materials. Build affordable houses, but not cheap houses. You should be able to differentiate between affordable and cheap.

Can an average Lagosian afford your houses, especially on the Island?
Sure! It’s all about preference. There are very expensive areas too on the Mainland. Do you know the price of properties at Ikeja GRA? You can own properties anywhere in Lagos and live anywhere else.

Are there projects you are working on currently?
We have an ongoing project called Woodland Court Estate. This is a uniquely designed mixed project of fully detached duplexes, semi-detached duplexes, and terrace duplexes. It is a fully serviced smart estate located at DPK District Estate, Orchid Road, Lekki. This location is highly sought-after. 
 
Then the second one is a multiple-floor building, which consists of one-bedroom and two-bedroom apartments located at Chevron Drive, right behind the Atlantic Mall, Lekki. 

From every indication, you are very busy as MD of Kirkwood. What has been your experience on the job and how do you balance family life with the role? 
I have gotten better at people management and leadership. The course I took also helped me. I put it into practice in my day-to-day running of the company. I work with people every day. From the educated ones to the uneducated ones, I manage people. I have been able to identify my target market, and have been able to ascertain their preferred location, and preferred property types, and of course, focused on channeling my energy to meeting and exceeding their expectations.
 
Before I step out every day, I make my to-do list. I know what to do, when to do it, and how to come back home at the right time, and still be involved with the kids. However, some days don’t go as planned. I always find a way to make it work.