In response to the challenges facing commercial real estate, particularly in the retail sector, a property developer has put forward a novel solution by proposing the establishment of an energy bank.
Mr. Olumide Akinsanya, Chairman/CEO of Median Infrastructure Development Company Limited, suggested the creation of an energy bank to provide financing and support for private businesses looking to invest in the energy sector.
Akinsanya highlighted the significant issue of energy costs affecting shopping malls, explaining how they have been subsidizing electricity for tenants but struggle to cover expenses due to insufficient revenue.
He emphasized the need for innovative financial mechanisms to alleviate industry challenges and support entrepreneurs.
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The developer, known for projects like Owerri Mall and Uyo Mall, mentioned the growing interest in value-add real estate and the cautious approach of lenders towards retail real estate investments.
Akinsanya also addressed the impact of exchange rates on the sector, noting the difficulties faced by foreign investors in repatriating funds.
Furthermore, he provided updates on the ongoing redevelopment project of Super Mall in Surulere, Lagos, highlighting the efforts to complete the mall ahead of schedule by December this year.
The project aims to meet the retail and entertainment needs of the Surulere community, offering lease agreements for prospective owners at competitive rates.
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The Super Mall project is envisioned to feature a range of facilities, including shops, a pharmacy, cinema, office spaces, food court, restaurant, and bar, with a focus on enhancing the overall customer experience. With plans for ample parking, accessibility, and modern amenities, the mall is expected to boost commercial activities in the area and create employment opportunities across various sectors.
