How crowd funding can boost housing stock

A firm, Richfield, has unveiled a subsidiary PropVest to help the average income earner who wants to own a house or property but find it difficult, OKWY IROEGBU­CHIKEZIE reports.

Richfield Nigeria, a real estate development firm and owners of PropVest, with estates in Lagos and Ogun states as well as Abuja, has unveiled PropVest, its income-generating investment subsidiary, to help workers make short-to-medium term cash flow from real estate investment.

Its Founder & Chief Executive Officer, Samson Odegbami, said cash  his firm would provide the needed via what he called crowd funding.

He said: “Their idea of the automated platform is to make financial inclusion of the low income earner possible. We distribute wealth through real estate, provide intelligence, advise on proper use of land. Automatically, the system notifies the firm to pay investors on the due. We reduce physical interaction, so an investor can monitor his investment from anywhere in the world. Investment options start at an entry point of N150,000, spanning various cycles of between six and nine months, with returns between 10 percent and 54 per cent.”

He said PropVest is a an emerging change maker that strives to reduce the housing deficit in Nigeria by pioneering an inclusive investment and earning model that funds real estate projects across the nation.

He recounted that the Nigerian Bureau of Statistics (NBS) had, in August 2012, estimated that Nigeria had a deficit of 17 million houses and required 700,000 houses yearly, compared to less than 100,000 being constructed.

Again, he said, in 2019, PricewaterCooper (PwC), the second-largest professional services network in the world, supported this data and confirmed that the housing deficit in Nigeria was indeed getting worse.

He said: “As an emerging innovative change maker in the real estate industry, PropVest is set to reduce the housing deficit in Nigeria by 500 units. This, it is making possible by pioneering an inclusive investment and earning model that funds real estate projects across the country. The real estate industry is a renowned sector that has continued to experience unparalleled growth over the decades. Of the over 206 million Nigerians, more than 17 million people are still without a home. This is partly due to challenges that individuals face such as lack and cost of funds to build, inflation resulting in constant hike in prices of building materials and skilled labour, among other issues.”

According to him, harnessing the power of new age technology and resources management skills, his firm has established as a channel that utilises stakeholders’ effort and fund to develop real estate projects; bringing sustainable solutions to old enduring challenges.

He reiterated that they have brought digital solutions to challenges in the sector such as the Land Use Act, which has impeded the sector, verifiable land with proper documentation and titling, automated solutions targeted at Nigerians in diaspora who want to invest in real estate with assurance of their funds.

According to him, the idea is to invest the extra fund or cash and reap between short and medium  term with a time line of between six to 12 months.

Odegbami urged the government to give the sector the needed attention.

Managing Director, Calabella  Integritas Project Limited, Oladipo Odunola, said: “We believe that PropVest will help move Nigeria forward by raising finance to build quality homes.”

He said they were partnering  PropVest  to deliver   green and sustainable  buildings.