FSL Property

[hispy99]

FSLP plans N3b expansion programme through fresh investments
By Gbenga Agbana

EFFORTS by the owners of FSL Property Limited, an indigenous company to expand its operations may soon ytield fruits as the company is currently floating a placement offering involving one billion ordinary shares of N1 each at N3 per share to equity inevstors.

The placement, which has Deap Capital Management and Trust Plc and Unity Bank Plc as joint issuing houses, is targeted at identified potential investors to whom an accompanying letter has been attached.

The net proceed of N2.84 billion after deducting the cost of the offer will be utilised in the development of Sunshine Towers (the company's two housing towers in Victoria Island), and also to provide working capital for the company.

The immediate goal is to successfully deliver Sunshine Towers to the market within 24 months. The long term goal is to replicate its success in prime locations in Victoria Island, Ikoyi and Abuja. The towers have twelve floors, each housing twenty residential accommodations - eighteen luxury homes and two pent houses.

According to Mr. Felix Akpe, chairman of the company, the purpose of the offer is to further strengthen the capital of the company, raise additional fund for the Sunshine Towers project with a view to reduce debt financing and the attendant interest cost, and to provide working capital for the expansion of the business. In his words,

"The management of the company sees great prospects for the company in taking advantage of the opportunities of growth and high returns in the Nigerian real estate sector."

He added that the Nigerian real estate sector offers opportunities for above average returns, and welcomed discerning investors to participate in his company's offer.

The shares being offered rank pari-passu in all respects with the existing issued ordinary shares of the company and shall qualify for dividend that will be declared for the year ending December 31 2010.

FSL Property Limited was established in 2005 as a special purpose vehicle for the acquisition and development of plot 38 Kofo Abayomi Street, a prime corner piece in the diplomatic layout of Victoria Island.

[hispy99]

Private Placement of FSL Property opens at N3.00
Posted Friday, October 3, 2008



- N1.00 each at N3.00 per share



I am pleased to invite you to be part-owner of a landmark development of high-rise luxury apartment homes in Victoria Island known as SUNSHINE TOWERS.



The development company, FSL Property Limited, is offering 1,000,000,000 shares of N1.00 each at N3.00 per share by way of private placement to selected investors.



You may apply for a minimum of 50,000 units or take advantage of the opportunity to acquire a sizeable amount of real estate shares.



Let me hasten to add that real estate shares are necessary enhancement for a well diversified investment portfolio.



You can obtain details of the offer on our website First Stockbrokers Limited - Shares - Treasury Bills or download same from the Proshare website, who has agreed, as usual to load prospectus information for the benefit of the investing public.



The issue is scheduled to close on October 17th 2008. Please act quickly to receive full allocation as applications will be treated on a first come, first served basis.


I look forward to receiving your completed application form and investment cheque soon as you take advantage of this unique investment opportunity.

For further enquiries please call the following:


08033395672 (Felix), 08060328161(Mike), 08032368725(Eric)

Felix N. Akpe

Chairman/CEO

[hispy99]

CEO Q & A with FSL Property Limited
Posted Friday, October 3, 2008


FSL Property set to ride Nigerian Real Estate Market

-Assures good returns to investors





“FSL Property Limited is envisioned as Real Estate Company of World standard, executing high-rise residential and office blocks developments for sale and lease. The Company will enjoy multiple streams of earnings from sales, leases, facilities management and capital appreciation” (Source: From the Chairman’s letter as contained in the Private Placement Memorandum dated September 09, 2009)



Proshare NI sought to find out more about FSL Property Limited, its ongoing Private Placement and pet project the SunShine Towers.



In this interview with PETER OBIORA of Proshare NI, Felix Akpe, Chairman/Chief Executive Officer (CEO) of the company, discussed the issue of FSL Property's ongoing Placement and expected dividend payout to investors, its planned listing on the Floors of the NSE in the next 18 months and the company’s expansion plans in the area of its business.



Other issues discussed include the FSL Property’s plans to absorb the excess funds in the event of oversubscription of the company’s Placement, post-listing fresh funds, future of the Real Estate business in Nigeria and sales of the SunShine Towers in order to add value to shareholders of the company. Excerpts:





The company FSL Property Limited

FSL Property Limited is a special purpose vehicle incorporated for the acquisition of Plot 38 Kofo Abayomi in the Victoria Island area of Lagos. It is a prime corner piece in the diplomatic layout of Victoria Island.



FSL Property has an authorised share capital of N2.0 billion out of which 800 million has been fully paid. The company is raising fresh funds through Private Placement (PP) to raise N3.0 billion as an additional equity in order to finance the SunShine Towers an ongoing project embarked upon by the company.



FACTS CHECK: Proshare NI visited and saw on ground workers with their equipments clearing a 4,400 square metres sight located at Plot 38 Kofo Abayomi Street, Victoria Island for a development to be known as SunShine Towers.





FSL Property and its N3.0 billion Private Placement

The cost of the Sunshine Towers project is about N4.2 billion; like I said earlier, N800 million has been raised by way of equity. There is also about N3.5 billion bank financing already arranged.



But the equity we are asking for is to do two things; one is to decrease the bank financing and also the consequent charges of interest in these days of credit uncertainty.



And to make the project more comfortable to the investors; by decreasing the cost of bank financing; which I mentioned earlier.



EDITORS NOTE: From the Placement Memorandum made available to Proshare NI, FSL Property Limited is offering 1.0 billion Ordinary Shares of N1.00 each at N3.00 per share. Application opened on Wednesday September 10, 2008 and would close Friday October 17, 2008. Joint Issuing Houses to the Placement is DEAP Capital Management & Trust Plc and Unity Bank Plc.





How would your select investors benefit from this Placement?

There are a number of ways, the first is that shareholders of the company has given approval that within 18 months of the completion of the Placement, FSL Property should be listed on the Floors of the Nigerian Stock Exchange (NSE).



Thus, the company would be listed even before the project which would take 24 months would be completed. The listing would give them an exit window from the company when they decide to do so.



The Placement price is N3.00 and the listing price is projected at N5.00, by the time the project is completed, expected share price is estimated to be N7.65 Kobo.



EDITORS NOTE: On the issue of listing above the Placement price, the Nigerian Stock Exchange (NSE) had confirmed that henceforth companies coming to list its shares on the Floors of the Exchange must do so at the price at which they sold the Placement.





FSL and listing application to the regulatory authorities

As a private company, we cannot be talking about listing until we complete the process of the Placement. We are following the advice of our Issuing House and we would follow all the rules and process that would make us list on the Stock Exchange. However, like I affirmed earlier, we are going to list in the next 18 months.



FSL Property and its 22 Kobo dividend payout in year 2012 Financial Year End

The company would be giving investors a dividend payout from year 2010 when it is expected to pay 18 Kobo dividend. While it would also pay the same 18 and 22 Kobo in years 2011 and 2012 respectively.



We expect to sell all the apartments in the two towers and this has since commenced, therefore, we should be able to realise a proportionate amount from these sales for the purpose of paying the above projected dividends immediately the Property is completed; starting from year 2010.



We have structured this project to maximise the streams of cash flow that would make it better for the investors; thus there would be cash flow from the investors, pre-sales and when the building is completed.



FACTS CHECK FSL Property Profit Forecast as contained in its Placement Memorandum for the years ending December 31, 2010, 2011 and 2012 shows that the company would be paying 18 Kobo dividend payout to investors in years 2010/2011 respectively and a 22 Kobo dividend payout in 2012. However, the dividend per share is based on issued share capital of 1,792,400,002 Ordinary Shares of N1.00 each.





FSL Property and business expansion

We are going to be a focused player; the expansion we are talking about is replication of the success we are achieving in Sunshine Towers in other locations. FSL Property would stick strictly to Real Estate investments.



As part of our expansion plan, we intend at this particular point in time to focus on Victoria Island, Ikoyi and Abuja. As time goes on, we would consider other areas, however, there are enough demands now in these mentioned areas of our focus; which would keep us busy for sometime



Future of the Real Estate business in Nigeria

The future of the Real Estate business in Nigeria is very bright indeed; because there is a great shortage in every segment of the industry; which include the high income top end of the market; where FSL Property operates, the middle income and lower income area.



It has been estimated that Nigeria has over 16 million units of housing deficit and this would continue to increase as the economy improves and the population increases.



Therefore, a well run and focused company is expected to achieve above average returns in the Nigerian Real Estate Industry.



The prospects are very good indeed; but you have to get your acts right and put things together in a proper manner.



FSL Property and post listing fresh funds

Of course a business that is expanding and growing would continue to raise funds and this is the reason we want to be listed on the Floors of the NSE; to be able to ensure a balance financial structure for expansion, there would be bank loans, mortgages; but it is always nice to be able to always increase your company’s equity.



FSL Property and timing of Placement

It is because the opportunities are there for those discerning investors; who can see that this is a project that would be listed in 18 months time; by which time these problems (current Capital Market crisis) would have been out of the way.



Also the demand for the quality of asset that we are bringing the market is so high; that we seem to be a niche that has been protected from the effects of the current market situation.



This is the reason balancing equity with debt ensures the success of the project; because whatever happens would affect first of all the issue of credit availability. Once you have a good equity base, this would no longer be so much a problem.



Status of the Placement

We are encouraged; because basically we have a good product, we have received very high commendations of the quality of the asset that we are bringing to the market; which is driving the demand for people to invest in it. We are quite confidence that we would receive a high level of subscription for the shares we have put in the market via Placement.



I would emphasis that with the current Capital Market trend, Real Estate investment is a good addition to the diversification of any investor’s portfolio.



FSL Property Placement oversubscription and excess monies

In the event of oversubscription, we have made allowance that the excess funds would be capitalised and the additional shares that can be accommodated by the company un-issued share capital be allotted to applicants subject to the company’s approval. However, our allotment would be on a first come first serve basis.



Sales of the SunShine Towers

We are going to sell the apartments in Tower B either in retail or wholesale; if we see a company that would take the whole Tower, we would sell it or at the same time, if we see individuals who want to buy one apartment, we would also sell it to them. The project is on a first come first serve basis.

[knightofdelta]

I am going to take a closer look at it. At this time of market downturn maybe real estate could come in as a way of a viable alternative investment vehicle in form of equity REIT like this one. I have downloaded the memo but it is taking too long to upload...

[Job]

Can any one gives us the soft copy of their prospectus to study and analyze.

[hispy99]

FSL Property extends Placement by 2 weeks
Posted Friday, October 17, 2008

Proshare NI

October 17 2008 at 18:21 GMT

FSL Property Limited has extended its Private Placement (PP) by two weeks. Felix Akpe, Chairman/Chief Executive Officer (CEO) confirmed this to Proshare NI today in Lagos Nigeria.

Akpe affirmed that it was as a result of the current lull in the Nation’s Capital Market that prompted the company to extend the offer in order to enable investors who are interested in the company to invest in it.

“The market has been low for sometime and we would want investors who are interested to raise funds somewhere to invest in FSL Property” he said.

Akpe further affirmed that due to the low market in the Capital Market, investors would not want to sell there shares; because they would not raise enough money as they would want; in order to invest in FSL Property.

“Everybody is waiting for the end of the month when they can raise income to enable them invest in our Placement and has indicated this to us” Akpe affirmed.

As earlier reported by Proshare NI, FSL Property is seeking to raise N3.0 billion by offering to select investors 1,000,000,000 Ordinary Shares of N1.00 each at N3.00 per share.

Minimum subscription of the Placement is 50,000 Ordinary Shares and in multiplies of 5,000 Ordinary Shares thereafter.

Akpe had earlier invited investors to be part-owners of the landmark development of high-rise luxury apartment homes in Victoria Island known as SUNSHINE TOWERS.

He had also affirmed that Real Estate shares are necessary enhancement for a well diversified investment portfolio.

The Placement which opened September 10, 2008 was supposed to close today October 17, 2008, but it would now close October 31, 2008 following the two weeks extension by the company.

Joint Issuing Houses to the FSL Property’s Placement is DEAP Capital Management & Trust Plc and Unity Bank Plc.

[hispy99]

Originally Posted by hispy99

FSL Property extends Placement by 2 weeks
Posted Friday, October 17, 2008

Proshare NI

October 17 2008 at 18:21 GMT

FSL Property Limited has extended its Private Placement (PP) by two weeks. Felix Akpe, Chairman/Chief Executive Officer (CEO) confirmed this to Proshare NI today in Lagos Nigeria.

Akpe affirmed that it was as a result of the current lull in the Nation’s Capital Market that prompted the company to extend the offer in order to enable investors who are interested in the company to invest in it.

“The market has been low for sometime and we would want investors who are interested to raise funds somewhere to invest in FSL Property” he said.

Akpe further affirmed that due to the low market in the Capital Market, investors would not want to sell there shares; because they would not raise enough money as they would want; in order to invest in FSL Property.

“Everybody is waiting for the end of the month when they can raise income to enable them invest in our Placement and has indicated this to us” Akpe affirmed.

As earlier reported by Proshare NI, FSL Property is seeking to raise N3.0 billion by offering to select investors 1,000,000,000 Ordinary Shares of N1.00 each at N3.00 per share.

Minimum subscription of the Placement is 50,000 Ordinary Shares and in multiplies of 5,000 Ordinary Shares thereafter.

Akpe had earlier invited investors to be part-owners of the landmark development of high-rise luxury apartment homes in Victoria Island known as SUNSHINE TOWERS.

He had also affirmed that Real Estate shares are necessary enhancement for a well diversified investment portfolio.

The Placement which opened September 10, 2008 was supposed to close today October 17, 2008, but it would now close October 31, 2008 following the two weeks extension by the company.

Joint Issuing Houses to the FSL Property’s Placement is DEAP Capital Management & Trust Plc and Unity Bank Plc.

Interesting...I know I am not one

[BLUEMONEY]

Originally Posted by hispy99

FSL Property extends Placement by 2 weeks
Posted Friday, October 17, 2008

Proshare NI

October 17 2008 at 18:21 GMT

FSL Property Limited has extended its Private Placement (PP) by two weeks. Felix Akpe, Chairman/Chief Executive Officer (CEO) confirmed this to Proshare NI today in Lagos Nigeria.

Akpe affirmed that it was as a result of the current lull in the Nation’s Capital Market that prompted the company to extend the offer in order to enable investors who are interested in the company to invest in it.

“The market has been low for sometime and we would want investors who are interested to raise funds somewhere to invest in FSL Property” he said.

Akpe further affirmed that due to the low market in the Capital Market, investors would not want to sell there shares; because they would not raise enough money as they would want; in order to invest in FSL Property.

“Everybody is waiting for the end of the month when they can raise income to enable them invest in our Placement and has indicated this to us” Akpe affirmed.

As earlier reported by Proshare NI, FSL Property is seeking to raise N3.0 billion by offering to select investors 1,000,000,000 Ordinary Shares of N1.00 each at N3.00 per share.

Minimum subscription of the Placement is 50,000 Ordinary Shares and in multiplies of 5,000 Ordinary Shares thereafter.

Akpe had earlier invited investors to be part-owners of the landmark development of high-rise luxury apartment homes in Victoria Island known as SUNSHINE TOWERS.

He had also affirmed that Real Estate shares are necessary enhancement for a well diversified investment portfolio.

The Placement which opened September 10, 2008 was supposed to close today October 17, 2008, but it would now close October 31, 2008 following the two weeks extension by the company.

Joint Issuing Houses to the FSL Property’s Placement is DEAP Capital Management & Trust Plc and Unity Bank Plc.

The offer was extended because it was grossly undersubscribed period. I may jump on this wagon when I Lay my hands on the PP Memo and see what they are offering.

[Job]

This stuff is for the Guru in the house to analyze it, and tell us their view about the FSL PP.

[BLUEMONEY]

Those that are ready to take the risk in buying into this PP, Be informed that from the PP Memo, the Company do not plan to pay dividend for the next two years.

And at the offer price of N1.50 kobo, the PP is still not Cheap as there are better bargains on the Floor of the NSE on Comparative Basis.

But that is why it is called PP --- Always Loaded with risk.