THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT March 7 th, 2013

1. Present Conditions 2. Market Opportunities and Challenges 3. The 3Invest Role 1. Specific opportunities for collaboration in the RE Nigerian Industry 1. Key 3Invest Current and Future Opportunities THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT The Real Estate Industry in Nigeria The Potential for Collaboration with Nigerian SMEs Doing Business with 3invest

The Real Estate Industry Of Nigeria THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT PRESENT CONDITIONS Economic Profile of Nigeria GDP: USD Billion (2012) GDP/capita: USD (2012) Size of RE Industry ~ 4 Billion USD NBS Economic Outlook 2012

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT % Distribution by type of Real Estate in Nigeria, 2008 NBS Statistical Bulletin, Vetiva Research The Real Estate Industry Of Nigeria PRESENT CONDITIONS

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT MARKET OPPORTUNITIES NBS Economic Outlook 2012 National Real Estate Industrial Growth 10% Annually (NBS) ( ) Lagos Real Estate Industrial Growth 22% Annually (NBS) ( ) The Real Estate Industry Of Nigeria

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World Bank Foreign Direct Investment, USD ,196,606, ,554,840, ,048,560, ,841,952, ,000,000,000 6,000,000,000 4,000,000,000 2,000,000, MARKET OPPORTUNITIES The Real Estate Industry Of Nigeria

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World Bank, Vetiva, 2011 High Housing Demand Housing Deficit is currently at ~16 Million Units nationally. 87% of the population is composed of by renters. Most families living in over-crowded conditions. MARKET OPPORTUNITIES The Real Estate Industry Of Nigeria

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World Bank, Vetiva, 2011 Sub-par Infrastructure Paved Roads (as % of Total Road Network. Nigeria and Other Frontier/Emerging Markets Only about 30% of Nigeria’s 193,200 km total road network is paved, relative to an average of 70% and 58% for frontier and emerging markets respectively The Real Estate Industry Of Nigeria MARKET CHALLENGES

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT World Bank, Vetiva, 2011 Sub-par Infrastructure Rail Network and Transport (Nigeria and Other Frontier/Emerging Markets) Only about 30% of Nigeria’s 193,200 km total road network is paved, relative to an average of 70% and 58% for frontier and emerging markets respectively The Real Estate Industry Of Nigeria MARKET CHALLENGES

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Pison, 2010, FINMARK Trust Poor Financing The Federal Mortgage Bank of Nigeria has since its inception grossly underperformed due to political instability, administrative problems and uncoordinated policies (Nubi) with negative impacts on demand. Access to Financing by Income Level The Real Estate Industry Of Nigeria MARKET CHALLENGES

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Pison, 2010, FINMARK Trust Widespread Contractor Under-Performance & Malpractice The prevalence of under- performing contractors and inadequacy of skill will often drive up the cost of development and increase the risk of investment in the industry. Common malpractice found in the industry include fraudulent pricing and contract breach. Ikeja Mall Rendenring The Real Estate Industry Of Nigeria MARKET CHALLENGES

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT 3INVEST LIMITED The Real Estate Industry Of Nigeria Company Profile Established in 2007 Main services offered include: (Through its 3Investor and 3Invest Intelligence arms) Acquisition & Disposition, Property Investment Consultancy Industry Advocacy Industry Information and Intelligence Core Values: RelationshipInnovation EthicsTrust Vision 3Invest aims to be the leading Real Estate Company built on trust and ethics, delivering excellent investor value. 3Invest CEO, Ruth Obih

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT 3INVEST LIMITED Advocacy in Real Estate The Real Estate On Air weekly broadcast hosted by 3Invest helps to strengthen the industry’s public platform by bringing all things Real Estate to the public discourse. The Real Estate Industry Of Nigeria Promoting & Enhancing Investment 3Invest provides an enhanced environment towards acquisition, disposition and investment in the most prized real estate for members of its 3Investor network.

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Capacity Building & Performance Indexing 3Invest is increasing the industry’s capacity to perform through Real Estate Unite- a key conference gathering industry professionals for networking, workshops and recognition based on performance through the Real Estate Unite Awards. 3INVEST LIMITED The Real Estate Industry Of Nigeria Information & Intelligence 3Invest is Nigeria’s premier source of industry information and intelligence through its online portal- 3Investonline.com

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT 3Invest also offers assistance to investors in the Diaspora who may find it difficult to navigate buying and investing in the Nigerian real estate market. 3INVEST LIMITED The Real Estate Industry Of Nigeria Enhancing and Enabling Seamless Acquisition and Disposition 3Invest through its bi-annual Property Buyers’ Forum brings buyers and sellers together and enhances decision making on a vast array of properties.

The Potential for Collaboration with Nigerian SMEs THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT SPECIFIC OPPORTUNITIES FOR COLLABORATION Collaboration through Direct Industry Participation Manufacturing: Major cement manufacturing plants (Obajana & Ewekoro) still operating below capacity, with at least 30% of national consumption imported. Steel not widely used as building material. Development: Housing, retail and office demand still far ahead of supply. Huge housing deficit, specifically affordable housing (16 million units).

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Collaboration through Semi-Direct Industry Participation Funding: Given the current atmosphere of tighter debt constraints equity has become even more crucial to the industry. Collaboration can take the form of Direct Investment in the highly profitable real estate industry of Nigeria. Technical Assistance: 3Invest and other organizations gain directly from improved industry performance through improved artisan skill and capacity. Technical assistance towards this can be by creating artisan training workshops. The Potential for Collaboration with Nigerian SMEs SPECIFIC OPPORTUNITIES FOR COLLABORATION

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT 3Invest Intelligence Media and advocacy arm of 3Invest. 3Investonline.com Real estate information portal. Real Estate On Air Advocacy and public discourse in real estate through radio media. Real Estate Unite Capacity building, networking and performance indexing through a conference and award conferring. Doing Business with 3Invest KEY 3INVEST CURRENT AND FUTURE OPPORTUNITIES SPONSORSHIP 3Invest offers the opportunity for collaboration through event and project sponsorship. PARTNERING There are also opportunities for direct participation in projects through partnering in planning and execution of some 3Invest programs.

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT Property Buyers Forum Enhancing property buying and selling, as well as investment. US Property Tour Bringing investors in the Diaspora the opportunity for investment in Nigerian real estate. 3Invest Acquisition Advising on and enhancing property acquisition. Real Estate Investment Connecting investors with developers and property managers to enhance investment opportunity. Doing Business with 3Invest SERVICE UTILIZATION 3Invest can offer collaborating SMEs a number of key real estate services thereby becoming a gateway for SME collaboration with Nigerian real estate companies. KEY 3INVEST CURRENT AND FUTURE OPPORTUNITIES

THE UK-NIGERIA SMALL AND MEDIUM SCALE ENTERPRISE PROJECT “Nigeria, other African property markets poised for strong growth”…The Guardian “A United States -based firm, Amira Real Estate Investments, has entered the Nigerian real estate market with the aim of delivering a 23-storey structure of Premier Condo Units valued at $145million (about N22.62billion) within 24 months”…Business Day “Investors want to take advantage of the property market that has survived a slump, with properties gaining in key commercial areas of Lagos, the capital Abuja and Port Harcourt by as much as 40 percent in the past one year,”….Lagos- based Sterling Capital Ltd “Economists expect Nigeria, already the continent’s most populous nation and largest oil producer, to overtake South Africa in terms of gross domestic product (GDP) over the next several years, technically making it Africa’s biggest economy.”….Daily Nation In Conclusion… THE TIME TO COLLABORATE AND INVEST IS NOW

THANK YOU March 7 th, 2013