Business Today: NNPC explores commercial opportunities in real estate

Business Today: NNPC explores commercial opportunities in real estate
Business Today

The Nigerian National Petroleum Corporation (NNPC) is currently exploring all commercial opportunities available in the real estate market to efficiently position itself as one of the key players in the sector, New Telegraph has learnt.

Besides, the move is hinged on the need to increase its revenue generation aside from oil and gas business.

To this end, the company, through one of its subsidiaries, NNPC Properties Limited, has embarked on the recovery of its over N100 billion worth of unharnessed landed property across the country for real estate investment.

The latest is that NNPC Properties Limited has secured massive land in three major cities in the country for real estate development.

A staff of the company, who did not want his name in print, told this newspaper last weekend in Lagos that the three major cities already identified for real estate potential include Lagos, Abuja and Port Harcourt.

He said the group would be spending $26.9 billion on 50-hectare real estate development known as “Royal Grove” in Greater Port Harcourt City, Omagwa, River State, for 770 families.

In an exclusive chat, the source said that aside from Port Harcourt, there was also plan to develop massive housing estate in Lekki Marina in Lagos State and another choice location in Abuja.
“We have on-going real estate development worth $26.9 billion in Port Harcourt. Our real estate development is also coming up in Lekki Marina. We have secured about 92 hectares of land running into trillion of naira in Lekki,” the source said.

Aside from the two projects, the source disclosed that NNPC Properties Limited had also partnered some real estate developers, numbering 30, for development of different grades of housing units in Abuja, Lagos and Port Harcourt.

“We are collaborating with several developers in Lagos, Abuja and Port Harcourt that are developing different grades of housing which will be made available to the public soon,” the source said.
Some of the private developers, this newspaper gathered from a document secured from the staff, included Jofame Integrated Limited for Royal Palm Villa, Ibeju Lekki, Lagos; Viendubond Contractors Nigeria Limited for Chessvile Corte, Life camp, Abuja and Mercy Sanuelson for Southend Estate, Abuja. Others are Princely Estate Limited for Eric Moore Lagos and Dacho-Telius Limited for the Reserve Estate in Port Harcourt, among others.

NNPC Chief Operating Officer (COO), Ventures, Babatunde Adeniran, had told journalists early in the year in Abuja that the plan would be honed through commercial opportunities, adding that the company had already commenced the recovery of the Corporation’s landed properties.

According to him, NNPC Properties Ltd had shifted from the initial lease administration of collecting rents from tenants of the NNPC Properties to “exploring all commercial opportunities available in the real estate market to efficiently position itself as one of the key players of repute that fits the NNPC brand”.

Justifying reasons for NNPC’s intervention in housing development, he said that real estate across the world has been identified as high revenue generating venture, adding that other countries have been moving away from just being oil and gas nations by moving into real estate.

The source said: “Countries like Malaysia is into real estate investment. So, we think there is need to diversify from just being oil and gas business. Real estate is a good future revenue generation venture.

“Nigeria has 17 million housing deficit, it means that there are so many people that need housing and government cannot do it alone except we have private investors and NNPC has to go into it to help bridge the gap.”

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