By Mashe Umaru a Gwamna
The Principal Partner, Lansar Aghaji & Co . ( Estate Surveyors & Valuers)
ESV. Lansar Aghaji said Estate Financing can provide multiple opportunities for Estate developers despite the challenges and technicality involved.
Aghaji who is also the Publicity Secretary, Nigeria Institution of Estate Surveyors ( NIESV) Abuja Chapter, stated this yesterday during an interview with Peoples Daily in Abuja.
He said there are windows of opportunities available for accessing funds for development and redevelopment of real estate.
“Real estate developers can explore this two sources conventional and contemporary sources for raising of real estate development funds . This two sources are strong finance options which include mortgage, commercial as well as saving and bank loans, pension , retirement savings funds , life saving insurance funds among others “.
According to him Estate finance basically is concerned about sourcing and application of financial resources for the development and management of estate with the sole purpose of maximizing stakeholders ‘ benefits .
He said “Real Estate development financing relates to land and is a process of carrying out constructional works which are associated with a change in the use land, its building and a change in the intensity of the use of land and re-establishment of an existing use.
He added that real estate development financing also focused on the traditional methods and sources of financial real estate development.
“This sources can be short time medium and long sources depending on which the developers chose.
“For instance, if a developer wants to carry out constructional works, finance is absolutely necessary and such may be accumulated or borrowed. In estate finance for real estate developers “ the person that wants to borrow is called credit facility and credit is described in real estate as the life blood of real estate investment . The availability and use of real estate credit has provided shortcut to property owners, for millions of firms, business and home owners”.
The Publicity Secretary stated that estate finance also involves methods that can be overlapping which are whether the finance internal ,external to the property.
“Secondly whether the finance is internal , external to the real estate owner or developer and based on the duration of the real estate in question whether the interest is small or large.
Consequently, he maintained that real estate developers who are interested in estate finance have ample opportunities to explore various source which can be loan, joint stock banks, industrial/ merchant banks, building contractors financiers.
“ For medium term loan is intermediate financial arrangement can used maximum for ten (10) years and long terms deals with building societies, finance institutions, property companies, public companies and other private sources , ESV. Aghaji emphasised.
While urging that estate developers to make the best out of all the categories of the real estate development.