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Buyers are now very suspicious of real estate firms — Kola Ashiru-Balogun

Kola-Ashiru-Balogun

Ashiru-Balogun

Managing Director of Mixta Africa (Nigeria), Kola Ashiru-Balogun, speaks with OLUSHOLA RICKETTS on his life as a realtor, challenges and working with the Edo State Government on a housing project

How long have you been working as a realtor?

I have been in the real estate sector for quite a number of years. I joined Mixta Africa in 2009, though I didn’t start as the managing director. It is one of the few companies in Nigeria that give one the opportunity to rise once one can prove one’s mettle. Before joining Mixta, I worked with other property companies in the United States of America. (Let him name one or two of such US companies)

Why did you settle for a career in real estate?

I guess it was what was available to me at a time. I love finance and real estate; so, I had the opportunity to study real estate finance in the US. After working with some property companies there, I wondered if I could do the same thing in Nigeria. Along the way, ARM provided me the opportunity. But I must confess, I was surprised to see that it had a strong and corporate platform in Nigeria.

When was Mixta Africa established?

Mixta Africa is predominantly owned by ARM and ARM has been doing real estate in Nigeria for over 20 years. We are different from others because we have a long-term view of the market. Also, as a company, our integrity is paramount, not making money. We understand that the Nigerian market is not large and everyone chases the same clientele; so, the only reason buyers come to us is because they trust our brand.

What are the challenges your company faces?

Trust is one of the key issues. We have a lot of companies that have been liquidated. They took money from people and didn’t deliver what they promised. But for us, since we came into the business, we’ve always kept our promises and delivered on all our projects.

Trust issue has affected buyers. Before, buyers felt more comfortable; but now, they are suspicious. One cannot really blame them, as they have had bad experiences. It has affected not just us in Nigeria, but a lot of Nigerians in the Diaspora too.

Can your facilities be compared with what is obtainable in developed countries?

What we do here in Nigeria can also be found in four other African countries, which are Morocco, Senegal, Côte d’Ivoire and Tunisia. Housing is a basic need of life; everyone needs shelter. For me, it is just the local condition that makes countries different.

People have the impression that real estate is very lucrative. Is this true?

If you say it is lucrative, you may want to look at the number of companies that have left the industry within the last three years. It is a very difficult industry, as you need significant amount of funds to survive and you must have a long-term plan. If you don’t have long-term funding, you have to look for ways to match short-term funding with long-term funding, which is always expensive and that is what simply gets people into trouble. It is not as lucrative as people think it is.

For us, we focus on affordability, as we believe it is the best way to do business. For instance, it is hard to sell a N360m house in the Nigerian environment. I believe that before I can sell a N360m apartment, it would be easier for me to sell 36 apartments that cost N10m each. We have a few high earners in Nigeria and we don’t participate much in that market. The only premium product we have is Lakowe Lake.

Is the Edo housing project financed by the government?

No, we are fully financing the project. The government supported with the land and also ensures we have an enabling environment to work in. It is about 70 hectares of land, which is quite large and allows us to offer affordable houses. But if not for the government’s support, we would not have been able to achieve this. Buyers are allowed to pay within 24 months.

When we did our estimate, we thought we would need five years to complete the Emotan Garden project. But with the way demand is increasing, I see the possibility of completing the project within three years. I have never witnessed such high demand for a project.

Why did the Edo State Government partner with Mixta Africa on a housing project?

Our track record speaks for us. Also, His Excellency Governor Godwin Obaseki says it openly that part of his agenda is to provide housing. Being a new governor, he does not want to play around; so, he chose a company that would deliver. I am sure they spoke to other companies, but they were more comfortable with us.

Do you bring labour from Lagos to work in Edo?

No, we do not. We partner with the indigenes of the state in order to impact their lives. We use their product and manpower. The governor believes housing is a way of catalysing other businesses within the state; so, he told us that we have to find a way of getting all the raw materials we need from the state. We also get labour and suppliers in the state. Edo Development Property Agency has been helpful in identifying companies to take care of the things we need.

How would you describe your childhood?

In Lagos, apart from the Lekki schemes, I doubt the government has built a housing estate like the ones we have in Surulere and Festac. I grew up in one of such estates in Ilupeju and I could run around the neighbourhood. I enjoyed riding my bicycle and I rarely stayed indoors; I guess that is why I enjoy visiting my project sites more than staying in the office. I was always outside playing, though I was not a sports person.

My father was not a very wealthy person but he wasn’t poor either. He made us know the importance of hard work and a good family name. He passed on almost 20 years ago and till today, I meet people who mention that they worked with him and he always exhibited strong ethics. My father did not give us much but a quality education and great name. This is all someone needs and I doubt I would be here today without these.

How do you relax?

I enjoy relaxing outside. I go to Lakowe Lakes Golf and Country Estate where I play golf. Wherever I go, I ensure that I am with my golf clubs. I am typically okay once I’m outdoors for a couple of hours.

I love golf because it is an outdoor game and is a great way of relaxing.  I feel great whenever I am outside.

How would you describe yourself?

I am an open-minded, family-oriented person. I love supporting as well as working with people. I love to see to the progress of people and I take a lot of joy in that. I treat people very well until they prove otherwise. I enjoy spending the free time I have with my family, especially my two boys.

How would you describe your fashion style?

I am a very simple person; I am not the flashy type. I prefer something simple and comfortable.

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