UACN repositions business operations to enhance profitability
The Chairman of UACN Property Development Company (UPDC) Plc, Larry Ettah has stated that the company is repositioning the business to enable it deliver better returns to stakeholders and improve performance.
Ettah, stated this while addressing shareholders at the company’s yearly general meeting held yesterday in Lagos on Tuesday.
He noted that the Nigerian real estate sector is one of the significant drivers in the country’s non-oil economy, adding that the sector accounted for 7.5 per cent of total GDP in 2015 and grew by 2.1 per cent year-on-year in the same year.
Ettah pointed out that Nigeria’s real estate market still presents substantial opportunities as well as a number of challenges for property investors and developers.
According to him, cumbersome and time-consuming processes for land acquisition, insecure land title and infrastructure deficiency are few of the challenges of the sector.
“Existing concerns such as underdeveloped mortgage market, paucity of medium to long term infrastructure and financial institutions with reasonable interest rates are areas the federal government would need to pay particular attention in the near future in order to move the sector forward.”
The chairman said the company posted revenue of N4.99 billion as against 2015 revenue of N3.74 billion, while loss before taxation for the group stood at N1.78 billion, making the board unable to pay dividend for the period.
Commenting on the operating environment, Ettah stated that housing demand in residential real estate has consistently exceeded supply, saying,
“A key constraint in bridging the huge gap in housing delivery on the demand side is affordability.