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Elvina Quaison, Director of Silk Solutions, spoke in this presentation to Business in Africa Pays about real estate opportunities in Ghana. In it she discusses how to find opportunities and what the foreign investor needs to do in order to make the most of them. Elvina mentions that the yield in Ghanaian property can be as much as 11%. Have you got the time and commitment to capitalise? Elvina will be reachable at our next networking drinks, Business in Africa Pays: Ghana. To listen to her presentation and to buy your ticket for the event in London on the 26th of June, book your tickets here... http://www.eventbrite.co.uk/e/business-in-africa-pays-ghana-networking-event-and-live-qa-tickets-8207680393?aff=eorg To learn more about Business in Africa Pays please click here... http://www.businessinafricapays.com
Citation preview
June 2014
Case Study: Ernest Hanson - The Accidental Property Developer
The Changing Real Estate Landscape in Ghana
Who We AreA spider’s web is a fascinating creation of nature, depicting precision and connections. When I started Silk Solutions, I wanted to establish a bespoke financial and investment advisory concierge service for Ghana’s up and coming high net worth individuals - a place for the emerging investor to discover unique, safe, and profitable financial and investment opportunities across sectors and industries in Ghana.
At Silk Solutions, we work with our clients to source and build bespoke investment portfolio. But we don’t stop there . We provide a range of investment ancillary services to ensure that, just like a Spider’s web, your investment journey with us is seamless.
Our Unique Selling PointWhat We Do
• We provide clients with strategic, tactical information, impeccable evidence based research and analysis from which they can make business and investment decisions
• We understand and value efficiency and service excellence. Our promise is to deliver a professional and seamless service, connecting you with all the backward and forward linkages required for your business needs
• We provide honest identification of and active management of business and investment risk, offering the best fit approach to achieving your outcomes
Purveyors of bespoke financial and investment advisory concierge services, embracing: Information gathering on
coming to Ghana, living in Ghana and doing business in Ghana
Business registration Industry and sector research Opening bank accounts Identifying appropriate
business partners Setting up meetings and
event management Car hire and hotel bookings Property investments Financial and investment
advisory services Special projects investment
(agriculture, mining etc)
Our Clients
• There are a number of firms and organisations that make it possible for us to do what we do expediently and professionally for our clients. We are proud to be associated with the following firms, who are our business partners:
• Beaufort Properties – developers of superior luxury apartments and town houses in Accra’s most sought after locations
• Songhai Advisory – is a bespoke business intelligence consultancy providing critical insight on market opportunities in Sub-Saharan Africa
Our Partners
• Ghanaians in the diaspora• High net worth individuals • Young professionals - the
emerging investor
Elvina Quaison - Director
Our CEO, Elvina Quaison, is a practiced Business and Migration consultant with over a decade of professional experience in bringing fresh business insight and intelligence to clients vis-à-vis their business and investment interests.
As a Business and Migration consultant, Elvina also has deep, remarkable insights into the business and investment needs of Diasporans. She demonstrates strategic and operational capacity and has strong connections with African and Africa business focused networks in the UK, US and across Africa
Business in Ghana
Ghana has been recognised by the World Bank Doing Business Report 2014 as the "Best Place for Doing Business in the ECOWAS Region”
Ghana had an economic growth rate provisional of 7.4%
Sectorso Agriculture, Food Processing, Oil & Gas among others o Construction/ housing – Shortage of approximately 1 million
homes
Ghana’s Property Development Sector
Historical Situation
• Live at home with parents until can afford to build or inherit family home
• Buy/inherit plot of land and build your own home Land issues Slow build – cash and carry
Ghana’s Property Development Sector
• Diaspora building homes in Ghana while they are abroad Cash and build Unreliable quality Trust issues can mean slow build as owner only builds on their
holidays Stress – Money, theft, poor quality workmanship Land issues – Double sell/ encroachment/
Change: Identifying a Demand
• 1991 – Regimanuel Grey Joint partnership Ghanaian and American company Have since built 2000 homes
- Buy off plan- Pre-decided design (room for small adjustments)- Land title all sorted out- Build management all sorted out- Gated community- Price established an elite neighbourhood
Regimanuel Estates
Demand Changing• Ghana develops and attracts greater levels of expatriate workers
Shortage of acceptable accommodation Houses no apartments Need for greater levels of home staff (Security, Ghana, House
help)• 2000+ Increased level of returnees coming to Ghana• Emerging Middle Class
Late 20s Early 30s Young professionals Young families Western living exposure Looking for affordable homes in Ghana
Opening the Market
• Introduction of Ghana home Loans –making mortgages more available to people 2007/2008 it started To date has given $60 million plus in loans
• Shortage of homes 1.5 million Need to be clear on:
o Where geographically is the shortageo What type of homes are requiredo What price range the homes need to be
Current Situation
• Affordable homes $30,000+ Outskirts of Accra Simple structures Basic fixtures and finishings
• Luxury Homes $150,000+ Central Accra Thoughtful design High end fixtures and fittings
Ernest Hanson: The Accidental Property Developer
Sent in 1989, as a 9 year old to boarding school in the United Kingdom
Parents remained in Ghana.
After finishing school at Clifton in Harrow, he did an undergraduate at the London School of Economics where he graduated in 2001
Met both future business partners at school and university respectively
UK Education system gave him contacts for his current endeavors
Work in Management Consulting and Investment Banking in the UK
Long hours, aggressive cultures but gave him a good appreciation for hard work, aiming high and achieving high standards
Returned to Ghana in 2008 to work at Viasat as their Business Development Manager to Africa
Provided a soft landing back into Ghana
Actually started his first real estate project in Ghana, Asantawana Gardens, in 2007 while still in the UK
Initially thought he would do student housing but luckily avoided that pitfall
Current business partner told him he was mad
Lots of mistakes, but luckily it was a success
In 2009 he started Clifton Homes with a friend from school
Had loads of fun, and sold 4 developments in 4 years
Still limited skills
Success: First project
• Central location: Shiashie/ East Legon• Modern structure• Good standard fixtures and fittings• Apartments = cheaper homes• Responded to aspirational lifestyle• Sold out 6 developments
Growth: Beaufort Properties
• Lower end of the high end• Highly desired location• Maximise space so economically sized
apartment, highly engineered to maximise space
• Relevant amenities for modern living• Built with investment aspect and living
needs in mind
Growth: Beaufort Properties
• Identifying trends• Locating your Niche• Sourcing valuable partners• Having a real passion about what you are
doing• Constantly learning• 75% sold still in building phase
Business Lessons• Look at the social and cultural development of the country
• Identify the need
• Identify where you can come in and how you can add value
• Recognise the challenges and take time to locate reliable solutions
• Think Global act local
• Skills are key: source from within or bring in what is needed with a view to developing that skill in house
Helpful Links
• www.gipc.org Ghana Investment and Promotion centre
• www.beaufortghana.com
• www.ghanahomeloans.com
• www.silksolutionsglobal.com
Next Steps
We look forward to working with you, pleasecontact:
Elvina Quaisonelvina@silksolutionsglobal.cm
+233 543 503 166
Thank You
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