Union Homes

[threecrown]

Dear Moderators, thanks for your good works,
i think it is strange having union homes (thread) in this building, construction stocks places. Union homes is not purely into building or construction neither is it purely a bank so i guess that was why it was more from the banking tread. but i feel we should have a new thread to accomodate, union homes, aso savings, crusader and the new coming royal exchange plc. Thread can be titled Other financial institutions. this will also accomodate other savings and loans, morgages, micofinances companies in future.

[riskreturn]

Originally Posted by threecrown

Dear Moderators, thanks for your good works,
i think it is strange having union homes (thread) in this building, construction stocks places. Union homes is not purely into building or construction neither is it purely a bank so i guess that was why it was more from the banking tread. but i feel we should have a new thread to accomodate, union homes, aso savings, crusader and the new coming royal exchange plc. Thread can be titled Other financial institutions. this will also accomodate other savings and loans, morgages, micofinances companies in future.

I concur with your observation.

[billions]

Originally Posted by threecrown

Dear Moderators, thanks for your good works,
i think it is strange having union homes (thread) in this building, construction stocks places. Union homes is not purely into building or construction neither is it purely a bank so i guess that was why it was more from the banking tread. but i feel we should have a new thread to accomodate, union homes, aso savings, crusader and the new coming royal exchange plc. Thread can be titled Other financial institutions. this will also accomodate other savings and loans, morgages, micofinances companies in future.

I agree that it is necessary and i expect more insurance companies/others to be in this sector in future.Thanks.

[hispy99]

Originally Posted by threecrown

Dear Moderators, thanks for your good works,
i think it is strange having union homes (thread) in this building, construction stocks places. Union homes is not purely into building or construction neither is it purely a bank so i guess that was why it was more from the banking tread. but i feel we should have a new thread to accomodate, union homes, aso savings, crusader and the new coming royal exchange plc. Thread can be titled Other financial institutions. this will also accomodate other savings and loans, morgages, micofinances companies in future.

great point, but I don't know how to create a parent thread like you suggested. Maybe the other guys/ladies know how to, or it is something that must be done by the EIC

[dimeji_777]

The ongoing Union Homes hybrid Real Estate Investment Trust (REIT) has been structured to create a portfolio balance through consistent dividend yields across market cycles according to the lead issuing house.
The managing director of Goldman Assets Management Limited, Abayomi Sanya disclosed that part of the benefits of the REIT included the provision of long tenor mortgages of between 25 to 30 years at marginal interest rates (MPR+ 1.75%). It also diversifies portfolio base via hybrid returns from construction, funds management, property management, mortgage interest and rental income.

The Union Homes REIT is an initial public offering of 970,873,787 units of N50.00 each at N51.50 per unit by way of a unit trust. Hybrid REITs specifically combines the equity and mortgage REITs by pooling funds to invest in both real estate properties and mortgages. Returns are generated from rental income and capital gains on the equity side as well as interest payments on the mortgage side.

The Union Homes REIT would be quoted on the Nigerian Stock Exchange (NSE) and would invest a minimum of 90 percent of its assets in real estate while about 10 percent would be invested in quality money market instruments

Sanya noted that REITs are attractive because of the steady dividend distribution from the proceeds, long term property appreciation. It is could also be actively traded as a security on the stock exchange for otherwise liquid real estate properties.

"The REIT provides alternative means of income to fixed income earners, there is employment opportunities and it would also increase the standard of living of Nigerians. With Union Homes REIT, there would be efficient management of existing properties and opportunities for expanded housing developments across the nation, he said".

It was gathered that 70 percent of the offer has been guaranteed by Union Bank plc while UBA Trustees serves as the trustees. Leadway Assurance plc is the insurance company to the REIT.

According to the issuing house, REIT’s share price would also depend on the performance of the underlying real estate and mortgage assets, as well as money market investments. Besides, the share price would depend on market perception of the equity.

Other key features of the offer include its low risk nature, minimal retained earnings, positive cash flow from operation, high influence on management given the need to issue new equity to finance acquisitions and is usually non-taxable.

The REIT which would close for subscription on September 11, 2008 is targeted at pension fund administrators, retail investors, institutional investors, insurance companies, investment clubs and foreign investors.

[panej]

How are current Union Homes share holders going to benefit from this REIT? Is it going to be completely spurn off from Union Homes or is it an extension and (hopefully) a tax abatement for Union Homes. I hope it is going to be an added value to current Union Homes investors. By-the-way; which body regulates REITs in Nigeria? This could be another loophole in the making.

[panej]

Can this data be correct about Union Homes? I thought there was a 5% limit on stock movement per trading day. With the information below, that would mean Union Homes lost about 21.5%. Can any one verify?

Union Homes Sav
As of 14:09 GMT 25 AUG 2008
4.24 NGN
Price Change
-1.16
Percent Change
%

SECTOR: | INDUSTRY: Financial Services
Previous Close 5.40
Open 4.24
Day High 4.24
Day Low 4.24
52-Week High 9.97
52-Week Low 4.90
Volume 1,400,656
Avg Vol 90d 3,712,696
EPS 0.00
Div & Yield 0.05 0.10
Ex Div Date -
Beta -0.91

[tonyawo]

It was adjusted for dividend of 10k and 1 for 4 bonus today. That's explain why you have that figure. Hope this is clear

[hispy99]

Friday, August 29, 2008

Union Homes' REIT to be listed on the Stock Exchange
By Femi Adekoya

UNION Homes Savings and Loans Plc has concluded plans to list its N50 billion Real Estate Investment Trust (REIT) fund in the equities sector of the Nigerian Stock Exchange.

Already, the council of the Nigerian Stock Exchange has approved the admission of the 970.9 million units being offered for subscription on its daily official list.

Speaking at a stockbrokers' forum in Lagos recently, the Managing Director of Goldman Assets Management Limited, Mr. Olu Abayomi Sanya, the financial adviser/head arranger of the company's ongoing offer, said that arrangements had been made for the listing of the fund on the Exchange to enable investors enjoy high returns on their investments, as it would be traded on the Exchange.

According to him, the fund, which will be quoted on the Nigerian Stock Exchange, (NSE) would invest a minimum of 90 per cent of its assets in real estate and real estate related assets and a maximum of 10 per cent would be invested in quality money market instruments.

Speaking at the event, the Managing Director of Compass Securities Limited, Mr. Emeka Madubike said that the fund was a good product and way of diversifying the market, but called for more publicity for the offer.

Another stockbroker, Managing Director of Capital Express Securities, Mr. Ariyo Olusekun expressed optimism on the success of the ongoing offer, saying: "I expect it to be successful because the properties invested in are very viable. Pricing is okay and will not be traded below listing value."

The fund is Africa's first Real Estate Investment Trust Fund and it is a close-ended unit trust scheme that aims to achieve long-term Capital appreciation of assets by investing in a portfolio of high quality real estate and mortgage assets.

Key features of the offer include a forecast cash distribution of N1.50 per unit investor in the 2009 financial year and the company has fixed N3.25 for 2010 initial investor, while a yearly payout of dividend with the minimum payout fixed at 90 per cent.

[billions]

UNION HOMES SAVINGS AND LOANS PLC
UNAUDITED RESULTS FOR THE FIRST QUARTER ENDED 30-08-2008
2008 2007 %CHANGE
GROSS EARNINGS N2.279b N1.740b 31
PROFIT BEFORE TAXATION N279m N224m 25
TAXATION N56m N45m 24
PROFIT AFTER TAXATION N223m N179m 25

[hispy99]

This memo is courtesy of gentle.

[hispy99]

Union Homes takes 970.8b offer to Abuja investors
From Mathias Okwe, Abuja

INVESTORS in the Federal Capital Territory (FCT) and neighbouring states were at the weekend served with a fresh menu of investment portfolio, as Union Homes Savings and Loans Plc took its 970.873 billion Real Estate Investment Trust (REIT) offer to the territory, beginning with a road show and latter with an interactive forum at the Transcorp Hilton Hotel.

The Managing Director and Chief Executive Officer of Union Homes, Mr. Austine Aikhorin told investors that the Union Homes' Real Estate Investment Trust (REIT), which seeks to raise N50 billion is to enable his institution deliver cheap housing for the Nigerian citizenry across the federation.

He said the investment in REIT will unlike in the ordinary public offers afford investors a clear 90 per cent of the derived profit being distributed as dividend while the bank will just retain 10 per cent for re- investment.

The subscription, which has already opened, he said has the size for 970, 873, 787 units of N50 each at N51. 50k per unit.

He said REIT, which aims to accelerate housing delivery and open up opportunities for new homes, offices, estates and condominium is being introduced in the country for the first time. This practice has been in countries like Australia, Denmark, Singapore and else where.

"The offer, which opened August 19 will boost the property market as well as yielding returns different from other shares traded on the floor of the Nigerian Stock Exchange to investors", Aikhorin said. The offer closes September 25.

He said investors in Union Homes REIT would benefit in many ways from its attractive yield such as the no double taxation profile, 90 per cent of the derived profit being distributed as dividend.

"Subscribers will be able to participate actively in real estate ventures undertaken by Union Homes through the scheme. The above benefits make REIT a more attractive investment option than stocks and shares. It will also provide constant liquidity to the investor, because it would be easily traded on the Nigerian Stock Exchange."

The scheme, Aikhorin said will be a window for cheap long-term funds to facilitates turnover in housing finance and also add to the country's esteem for be in the league of countries that have successfully floated it.

The Union Homes hybrid REIT is a combination of the mortgage REIT and equity REIT, which makes it a unique package.

A Mortgage REIT, the MD said is one in which resources are pooled for the sole purpose of giving out mortgage loans for housing for longer tenor and more attractive interest rate without the burden of excessive taxation.

Equity REIT on the other hand, is one in which funds are pooled for the purpose of investing directly in real property to buy, develop, renovate, sell and let out properties.

"The REIT income is derived from the cash-flows of such investments, which are packaged as tradable securities and subscribed to by individual investors in the capital market. Union Homes REIT promises a plethora of benefits to the subscribers and the country at large", he said.

[gentle]

All these hypes about this offer... what does the gurus in this house think about this offer? Is this not like the skyshelter stuff? I am considering whether to invest in it.

[faoogoke]

My take on this offer and on anything that has to do with Union homes, Union bank, anything Union is buyers beware. Ask those of us that participated in Union banks last public offer Try also to open an account with the Unions (Homes or bank).
They have refused to shed their conservative tonga is this jet age. My 5 kobo!

[billions]

Operators endorse Union Home’s REIT to investors
03 September, 2008 02:00:00 NGOZI UCHE
Font size:
Union Home’s hybrid Real Estate Investment Trust (REIT) offer has been described as the first of its kind in the Nigerian stock market going by the packaging and prospects. Stockbrokers were unanimous in their approval of the offer which has the potential for portfolio balancing and diversification.
Investors in the trust are to enjoy steady dividend distribution of 90 percent or more generated through a diversified real estate portfolio. The PFAs are also expected to invest their fund in REIT by law because it guarantees high profit yield.

The managing director, GMA Sanya Olu who is the lead issuing house of the offer said the REIT has been transparently structured by reputable parties, which testifies to its viability. Union Bank plc he said guarantees the total offer value to 75 per cent which means investors would not loss their investment no matter the situation while United Bank for Africa plc is the trustees.

He further explained that it offers multiple stream of income generation to investors through rental, sales, mortgage interest, money market and equity price appreciation.

The REIT is an investment product that invests in a variety of property types like shopping centres, apartments, warehouses, office buildings and hotels. The potential for capital appreciation for property in the country is part of the reason for its high return yield.

Union Homes the issuer of the trust, is the highest investor in mortgages apart from the Federal Mortgage Bank with properties in High brow areas in Lagos , Abuja , Port- Harcourt and other cities in the country.

Operators expressed their belief in the trust to deliver on its expectations, noting that investors need such a product to balance their portfolio especially in this period of market volatility, adding that it is a win-win investment.

With successful management of REIT in the country, people can buy their homes and spread the payment over 25 years or more. Union Homes hybrid REIT offer was opened on Tuesday August 19, 2008 for 970,873,787 units of N50 each at N51.50 per unit.