Octo5 Holdings Is Making Affordable Housing A reality
Motivated by a conviction that home ownership is crucial in building a quality lifestyle, Octo5 Holdings Limited prioritizes every step of the development process from concept origination through to completion and hand-over in its bid to deliver a quality and cost-efficient home.
Founded in 1997 and in unbroken operation since 2000, Octo5 Holdings (formerly known as Legacy Realties) was created to address a massive need in the market. This unmet demand for affordable homes with standardized levels of livability; which reflects and encourages harmony with the environment in which they were established; supported with flexible terms of acquisition; and assurances of good /inflation-proof returns for investors are the key operating mantra of Octo5.
Octo5 Holdings has earned a prestigious track record, developing some of the city’s most significant middle-market contemporary residential developments. The developer’s dedicated team of accomplished real estate professionals operate with a free-thinking and imaginative approach in designing residences that meet and anticipate the needs of today’s most discerning middle-income residents.
Firmly established as a leading player in Nigeria, Octo5 Holdings brings both affordable and middle-income developments to market and nurture them into inclusive fully occupied communities. As project managers, in addition to developers, Octo5 Holdings ensures that their unmatched standards of high-quality architecture, materials, and finishing, combined with flawlessly landscaped surroundings, are reflected in every project.
It is this unwavering attention to detail which sets Octo5 Holdings apart and makes the firm the development company of choice for home buyers.
PLEASURES magazine talks to Jide Odusolu, Founder & CEO of Octo5 Holdings Limited, on how the firm is championing innovation in the real estate industry in Nigeria, its growing nationwide footprint, and the importance of a customer-centric philosophy.
What do you see as the challenges to real estate growth in Nigeria?
Hello and thanks for inviting me for this chat. The Nigerian real estate sector is possibly the largest and probably most transformational remaining piece of the puzzle to unlocking wealth for the average Nigerian. The sector with over $900B in dead capital as advised by PWC and minimum annual GDP share of $50B, remains largely unstructured; under-funded and true demand outstrips supply!! The inefficiencies in the sector coupled with massive bureaucratic obstacles have combined to create massive gaps. We see this as a huge opportunity and working with other large players in the sector, we are determined to aggregate capital and turn it around.
CEO, Oct5 Holdings Limited, Jide Odusola
What is the underlying philosophy of your real estate initiatives?
Our underlying philosophy is to use real estate as a tool for economic emancipation. We believe that as more Nigerians become real investors in the Nigerian economy, the system will of necessity become better. That vision is what has propelled us to date.
Where did the idea for Octo5 Holdings Ltd come from?
Octo5 is a twenty-one-year-old development company and we used to be called Legacy Realties Limited. Our dream was founded on that age-old African tradition where a man is deemed successful when he can afford his own “hut” and owns his patch or farm. Today, the average person strives to meet the modern version of that aspiration and we exist to assist them achieve the goal.
Our name Octo5, was derived from the imagery of the Octopus (with its several tentacles) while the Five represents our five-core business focus areas – residential & commercial developments; construction; utilities management and technology solutions.
People erroneously assume it has to do with my birthday which is a rather fortuitous coincidence.
What does your typical day look like and how do you make it productive?
My day typically starts with personal meditation at 6am and by 8am, I am often in a flurry of meetings until 7/8pm in the evenings.
How do you bring ideas to life?
I am a very cerebral person, who thinks in pictures. Typically, most of our concepts are birthed through a high degree of introspection before moving into intense strategic reviews with our design teams. My colleagues over the years now know that I abide by two codes – NOTHING IS IMPOSSIBLE & ALL IDEAS ARE SUBJECT TO CONTINUOUS IMPROVEMENT.
What’s one trend that really excites you?
The transition into a truly digital world is deeply exciting to me. I am excited by the endless possibilities it has created for massive transformation especially in Africa, the final frontier and mother of civilization.
Give us a brief overview of Octo5 Holdings Ltd?
As I earlier stated, we are a multi-disciplinary development company that has been around for 21 years. However, we call ourselves a 21-year-old START-UP. In recent times, our goal has been on triggering industry-wide change using technology. We are also heavily invested in using new solutions for old real estate problems.
Could you elaborate on the scope of houses/structures at your housing estates?
We have two owned estates located in the Lekki axis of Lagos, Nigeria, with over three-hundred and fifty homes delivered and occupied by working professionals across several industries. Most of our projects are designed to attract middle-income earners with as low as $350 (NGN150k) in monthly disposable income and enable them to become property investors.
We have affordable homes priced from $10k to $30K located in peri-urban centers; from $40k to $100k for affordable luxury (classic homes) and above $130k for premium homes. All our homes are developed and delivered in fully serviced urban communities that offer good yields for the owner/investors.
Tell us about your projects and offers?
Our largest and best-known initiatives are our flagship estate located in Lekki, Lagos called Ocean Bay Estate and our recent technology products. We are often amazed that Ocean Bay, which is one of the older and earlier communities developed in the Lekki axis of Lagos remains highly contemporary and very popular with the market; our STOW app which is a mobile and web-enabled digital marketplace that makes buying and trading ownership of off-plan or new build homes intuitively easier, is enjoying market reception; and our Guaranteed Assets Management Scheme which allows non-resident investors secure guaranteed earnings on their real estate investments has also been embraced in the market.
What are the other flagship developments in your pipeline?
We are launching two MAJOR initiatives by Q4 of 2021. The first is a new town development in Abuja, Nigeria and the second is a private urban-city resort on the Lekki Peninsula.
How does Octo5 Holdings Ltd champion innovation in the construction industry?
We are one the leading pioneers in the industry and we were one of the very first developers to introduce flexible home purchase plans in the early 2000s. Thereafter, we introduced many other innovations, including use of formworks to fast-track construction. As a company, we are committed to a constant process of innovative evolution and our goal is to develop smart green cities across Africa.
What role does research play in the development of housing projects, and in what way does it seek to redefine the real estate industry?
Data, knowledge, and information are critical to success in the real estate sub-sector. We have a full team of brilliant analysts who ensure that we can avoid unpleasant surprises while constantly innovating and introducing new solutions for the industry.
What are your challenges running the company and if you are opening to foreign or local partners and investors?
Capacity building through technology and manpower development is a major gap that we are exploring partnerships to address. We are hoping to create a minimum of 100,000 jobs within the next year through our planned skills enhancement programs.
Secondly, long-term finance or patient capital is a major need for our goal of delivering 10,000 homes within a short period of time across Nigeria. In conjunction with our financial advisors, our goal is to raise a minimum of US$100m within the next year to drive these goals.
Arc Olamilekan Adegbite, Minister for Solid Minerals; Jide Odusolu, CEO Octo5 and Festus Keyamo, Minister of State for Labor at a dinner organized by Octo5 Holdings recently in Abuja.
How did of Octo5 Holdings Ltd achieve its growth?
We have grown through self-discipline, divine favor and a process of calculated self-disruption. We are constantly reinvesting in our product offerings, and we have a five-year growth plan in our goal to become the largest developer in sub-Saharan Africa.
How would you like to further grow Octo5’s international footprint?
Once we make STOW the leading platform for new-build homes In Nigeria, we intend to expand starting from West Africa until we are all over Africa.
Imagine the future of the real estate industry: How do you see Octo5 Holdings Ltd evolving in the future?
We will be the largest developer in sub-Saharan Africa and the largest youth enabler and employer in Africa.
What informs the choice of locations for your development and how does that affect the marketability and affordability of your projects in the long run?
We see real estate as a tool for economic empowerment. As such we select peri-urban locations with high probability for minimum capital appreciation of 200% within a four-year period. Our track record has been near excellent across both public and private sector development initiatives.
How does Octo5 Holdings Ltd distinguish itself from other real estate companies in Nigeria?
Nigeria’s real estate sector is a blue ocean of opportunities. However, our key difference is the clear segment focus and creation of inclusive fully serviced communities that enjoy organic growth and increase in capital values.
What keeps you and your team motivated?
Our dream and vision keep us fired up.
What is your outlook for the upcoming year?
The devaluation of the Naira has impacted the earning capacity of a significant part of our clientele. However, we expect the ongoing recovery to continue, and we are bullish on the growth prospects as we move into 2022.
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