Overview Why Provide Property Services?
As the leading social security financial services provider, our philosophy has been to ensure we provide all round solutions for our clients to enjoy the ultimate goal of a dignified retirement life. Our primary underlying objective is to assist our clients sustainably enjoy the following benefits through our innovative products and services;.
- Adequate regular Income.
- Quality Healthcare.
- Affordable Housing.
Some of the challenges our clients face in accessing housing includes the high cost of land/houses, affordable financing or even the time and know-how to develop land already acquired.
Our experience has shown that due to these challenges, most members of pension schemes would wait until retirement to use their accumulated savings to purchase or build a house. Thereby putting a strain on the already limited income they have accumulated at retirement which may significantly hamper their quality of life in retirement.
Enwealth is addressing these gaps through innovation by pooling together our resources to facilitate the construction of quality houses, financed through pension backed mortgages and collaborative partners for affordable housing development. Through this product, scheme members will be able to benefit from home ownership today in an investment that will go a long way in securing their financial future.
Commitment How do we achieve This?
We work with Trustees of pension schemes we serve to constitute a property development strategy that will deliver superior returns for the pension scheme as well as directly benefit the individual members of the Scheme.
We also assist individual members to attain affordable pension backed mortgages through our financing partners for purchase of property, development of land the member already owns or renovation of a property already owned.
The property investment strategy is based on the realization that property is an asset class just like bonds, equities and offshore investments. This means that the key justifications for an exposure to property are diversification and generation of a reasonable return within an acceptable risk exposure/appetite. As with any other asset class, we work closely with the appointed fund manager of the scheme to ensure a modest;
- Return, as measured by capital growth and net rental yield.
- Risk, in terms of capital preservation and maintaining acceptable net yields.
- Liquidity, ability to dispose an asset as fast as possible with no or minimum loss in value.
Risk management is part of the critical considerations through which we seek to analyses Risk return considerations based on the different types of properties that Trustees are likely to invest in. This risks may include but not limited to the following;
- Development risk – This is the likelihood that a property construction project will not be completed as per original quality, time frame and cost.
- Market risk –This is the risk associated with unfavorable movement in rental rates and property prices/valuations.
- Settlement risk –This is the risk that a counterparty might not deliver ownership/title documents or its value in cash after the other counterparty or counterparties have already delivered the security or cash value as per the trade agreement.
- Liquidity risk –This is the risk steaming from lack of marketability of a property leading to a likely sale or disposal at a lower value or inability to sell the asset at all.
- o Lease-renewal risk-this is the likelihood that rental leases might not be renewed or renewed at lesser value or price.
We therefore pursue an integrated approach in minimizing both the occurrence and severity of the above risks. Property portfolio diversification, correct asset allocation across various property sectors, property market research and appropriate counter party limits will be of paramount importance in achieving this.
The universe of property sectors across high-end, middle and low-end economic classes from which the Fund can choose to invest is as shown below:-
- Office – High rise office blocks and decentralized/stand alone low rise office blocks.
- Residential – Apartment blocks/flats, maisonettes, bungalows and town houses.
- Retail – Shopping malls and stand-alone shops.
- Hospitality – Hotels and restaurants.
- Industrial – Go-downs and warehouses.
- Agricultural – Cash crop and horticultural land.
Contact us today for more information and let us help you attain this milestone today through