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Corporate Real Estate Management: A Need for Paradigm Shift in Nigeria

Economic and Business Review

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Title Corporate Real Estate Management: A Need for Paradigm Shift in Nigeria
 
Creator Oladokun, Timothy Tunde; Department of Estate Management and Valuation,
University of Sri Jayewardenepura,
Nugegoda, Sri Lanka
 
Description This paper aims to evaluate the strategies adopted by Nigerian banks to integrate the management of their real estate assets into the overall business objectives. Questionnaires were distributed to the corporate real estate managers of the 24 recapitalized banks in the country and supplemented with interview.  The study adopted the descriptive method of percentages, mean and proportion methods for analysis. The study found that Nigerian banks have distinct real estate units that manage their substantial real estate holdings, which they revalue at the open market basis in every six months. The study also found high preference for recording the value of the leased portion of their real estate assets by adopting the total financial commitment approach. While noting that the real estate units of the organizations are structured as cost unit, the study indicated that in meeting their required space needs, the organizations consider their immediate business needs. The study has major implications on corporate real estate management and banking practice in Nigeria. There is a need for organizations to re-direct their focus towards the strategic perspective of CRE as an important and profit inducing tool of business. This may require exposing CRE executives to requisite training that will equip them for effective service delivery. Inefficient real estate management can result in huge loss of shareholders fund by investors and subsequently affect the economy. The study identified real estate as a ‘turn around’ tool that can be adopted by bank executives to improve their financial status and a pro active step towards building an efficient and virile profession to handle the emerging corporate real estate management, which is a sub discipline in real estate management. Keywords: Corporate Governance, Corporate Management, Corporate Real Estate, Real Estate Assets
 
Publisher University of Sri Jayewardenepura
 
Contributor —
 
Date 2011-11-23
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://journals.sjp.ac.lk/index.php/SLJRE/article/view/127
 
Source Sri Lanka Journal of Real Estate; No 5 (2011)
 
Language eng
 
Relation http://journals.sjp.ac.lk/index.php/SLJRE/article/view/127/51