In a major move to reshape Nigeria’s property landscape, UPDC Plc has officially received the green light from its shareholders to establish a N100 billion Real Estate Investment Fund.
The Fund to be known as the UPDC Real Estate Investment Fund (REIF), a regulated real estate investment vehicle, is to be established pursuant to the rules and regulations of the Securities and Exchange Commission (SEC).
The shareholders approval for the UPDC Real Estate Investment Fund was granted during the company’s 28th Annual General Meeting (AGM) on May 7. This approval marks a pivotal shift in UPDC’s growth strategy as it transitions toward a more robust, fund-based model for property development.
The shareholders also authorised the Board to mandate a duly qualified Fund Manager to establish and administer the Fund in accordance with applicable SEC Rules; contribute identified pipeline projects, spanning residential, commercial, retail, and hospitality asset classes as may be determined by the Board of Directors of the Company into the Fund in exchange for such consideration as the Board may determine and agree with the Fund Manager.
The shareholders also authorised the Board to do all such other acts and things as may be necessary or incidental to its role as Fund Sponsor, in each case on such terms and conditions as may be determined or approved by the Board, subject to obtaining all relevant regulatory approvals.
Also as part of the special business during the meeting, UPDC’s Board of Directors were authorised to take all such lawful steps, and do all such other lawful acts and/or things to the establishment and operationalisation of the REIF.
This includes obtaining all relevant regulatory approvals, appointing the Fund Manager, Trustee, Custodian, and any other advisers or service providers, and executing all documents required to implement the resolution. The shareholders also ratified all lawful acts carried out by or on behalf of the Board in connection with the establishment of the Fund prior to the recent resolution.
