Nigerian-based company, AiQ Capital Management Limited seeks investors to invest in their AiQ Capital Hospitality and Real Estate Fund to develop projects in Nigeria over the next five years. A minimum investment of $500 000 and a maximum of $75-million is required from local and international investors. Market studies indicate that there is high demand for mid-priced hospitality and retail facilities in Nigeria.
Nigeria has a rapid growing economy and the fastest growing market in Nigeria is the middle class. The five year project is split into two tranches.
The investment strategy is presented below.
Investment strategy
The fund is to be packaged in Tranche I and Tranche II as explained below:
TRANCHE I:
- $150-million investments in hospitality products from equity contributions and funds from Afrexim Bank Contour programme in a 50:50 ratio.
- Average of 150 rooms per hotel with average project cost of $100 000 per room over a five-year period to be spread as follows:
From closure to 18 Months – 3 hotels
From closure to 36 Months – 6 hotels
From closure to 60 Months – 10 hotels
- Hotels will comprise 90% regular executive rooms and 10% suites, and are to command average daily rates of $150 and $250 respectively.
TRANCHE II:
- $150-million investments in real estate products from equity and debt contributions in equal proportions.
- Investment plans shall run concurrently with Tranche I, while the first ground break will come after Year 5 of Tranche I.
Interested investors are encouraged to respond to this opportunity.
With Frontier Market
