Ivory Coast Real Estate Market overview Part 1

Prepared by Frederic A Tape And Paul Sika Abidjan,Cote d’ivoire April 2009 Abidjan [Ivory Coast] Real Estate Market Overview Part 1 Presented by SCI La Tysche Changing the social experience by shaping the places we live,work,play and learn Circumstances of the Real Estate Market in Abidjan,Cote d’Ivoire

Market Circumstances Industry destined for sophistication CRITICAL MASS One of the largest, growing and most sustainable industries in Ivory Coast with Abidjan as the nerve center, however parallel markets are developing in other key urban markets CAPITAL GAP Large capital gap between supply and demand in real estate market LEVERAGE Sophisticated financing solutions becoming available over recent years VALUE & EXIT Coming FDI’s,Domestic capital spending ,Investing Institutions and High net worth individuals capital will boost asset values within several years www.blueprintafrica.com ©2009 SCI LA TYSCHE

A Sustainable industry quickly growing despite the political crisis Office buildings Source: http://blueprintafrica.com Shopping centers Source: http://blueprintafrica.com Apartment buildings Development Project Source: http://blueprintafrica.com Source: http://blueprintafrica.com www.blueprintafrica.com ©2009 SCI LA TYSCHE

A Diverse porfolio to meet diverse needs in the real estate space Residences Source: http://blueprintafrica.com Conference venues Source: http://blueprintafrica.com.. Sport Facilities Source: http://blueprintafrica.com. The market failed to supply adequate and modern sport facilities to practitioners of basketball,volleyball, swimming,tennis, handball , motorbike running and other sports Even major sport activity as football has been neglected.Gymnasiums, Boxing clubs,Yoga clubs,aerobic clubs,body building clubs,swimming pools or a combination of these activities have a place in the market The number of industry related conferences,roundtables, workshops and awards have grown exponentially in the past three years and it is believed to be an upward trend.As the Economy gets better this type of activity will increase in quantity and quality. For now 5 or 7 private venues are constantly being used, when it not the available space in the public Administration offices. www.blueprintafrica.com ©2009 SCI LA TYSCHE

Growth of class of professional workers requiring work and living space adapted to their work and lifestyle needs Entertainment Facilities Individual Boutiques Individual Villas/Mansions Entertainment facilities in the form of nightclubs,bars,lounge,cinemas,pubs,casinos,concert venues are present in good number and are generally of quality,nonetheless the market can still absorb new entrants. They are not enough concert venues and cinemas, even though there is clearly renewed interest by the public for live performances by local and international music stars.The same can be said of need for cinema goers. www.blueprintafrica.com ©2009 SCI LA TYSCHE

Important migration towards cities and demographic increase ask of us better management and utilization of space Open Air Marketplace Source: http://blueprintafrica.com. Gated communities Source: http://blueprintafrica.com. Art Facilities Private Gardens/Parks The market is yet to build art facilities such as ,museums, galleries, movie theaters lecture halls, and playhouses.One must come and facilitate the meeting of a growing cultural public and the pool of talent/work that is readily available. An exponential number of quality productions in the visual arts, the theatrical industry, stand-up comedy,fashion industry, would necessarily have to be supplied the adequate facilities for a productive enjoyment by the consuming public. For now the market only has the Palais de la Culture, and in the near future Le Centre Culturel Francais and L’hotel Ivoire that are both being renovated at the moment Private or public gardens for individuals, whose lifestyle demand an healthy interaction with nature, are not at disposition.The few gardens or parks that can be found are in total desuetude Open air markets located in the residential neighboorhoods ,are in insufficient numbers and those that are currently present do not meet all environmental,safety,food protection and quality standards. They are not successful playing the role of being ,the platform of commercialization of the local food to the consuming public. The builder/operator of this kind of real property must facilitate the sale of clean,diverse,rich and healthy food to the consumer in a space conducive to that. www.blueprintafrica.com ©2009 SCI LA TYSCHE

? A consumer base in need of basic infrastructural facilities to cater to their family needs and individual investment aspirations Food Facilities . Education Facilities Source: http://blueprintafrica.com. Urban Land Plots Health Facilities Source: http://blueprintafrica.com. Source: http://blueprintafrica.com. Education facilities include private Kindergarten, neighborhood libraries, art schools, Business schools, technological schools,communication Schools,culinary schools and other specialized schools. The market is in need of properties that offer an environment conducive to proper training of the Students. Health facilities would include specialized clinics maternity wards,well being centers,laboratories surgery rooms,psychiatric hospitals,detoxification centers sexual health clinics, and urgent care centers. The market has not been supplied in sufficient number with such facilities.Doctors and other practitioners can not find properties that offer them triple benefit: localization design,affordability. Food facilities consist of individual restaurants,fast foods establishments, specialized food store,food courts,and food storages. The industry supplied the market with an array of food facilities that showcase varying quality levels.Some of the shortcomings of are linked to localization,optimization of the space housing the activity, the ease of access to some of the establishments, as well as parking issues. www.blueprintafrica.com ©2009 SCI LA TYSCHE

Strong economic fundamentals and increasing political stability form opinion of further economic growth

Sustained Economic Growth:

GDP growing over 3 consecutive years;2009[Est 3,7 %]2008[ 2.8 %]2007[ 2.5 %]

Projected GDP growth of 4.5 % per annun over the 2009-2012 period

Stable and increasing budget;2009[3,5B Euros] 2008[3,3 B Euros],2007[2,9B Euros]

Controlled inflation and convertible and stable currency rate[ Cfa is pegged to the Euro];

Projected growing per capita income and consumer spending.

Low inflation thanks to a regional fiscal and monetary policy

Political Stability:

New consensus leadership and upcoming election

Vital reforms initiated (tax, pension, judicial, protection rights, etc.);

Commitment to further reforms and free market.

Industry overlooked by domestic and international investor groups:

Not enough professional institutional investors in the asset class.

Investment supply/demand gap in Ivory Coast real estate market.

Opportunity to gain a leading market position.

Investment grade projects and existing properties command substantial yields.

More assets becoming available from various players.[individual owners,Private Companies,Real estate promoters,The state government,Families,Villages]

Not yet fully transparent market:

Access to attractive opportunities depends on local experience and social and professional networks.

Future decline in Ivory Coast market risk estimates and institutionalization of the industry will boost values within foreseeable future.

Improving legal systems amid room for growth

Dividends: Substantial and sustainable cash flow proceeds generated by real estate assets start recouping investors’ capital after an investment and/or necessary operating improvements are made to properties

Recapitalization: The newly available debt financing options enable returning most of investors’ capital via refinancing. More appropriate capital structures also improve current yields and facilitate the return of capital.

Domestic Institutional Buyers: The emerging class of domestic institutional investors, such as private companies, insurance companies,Investment banks,state owned companies,and private groups, lacks investment options and will move into the asset class.

International Buyers: Real estate is one of the primary options for diasporic and international investors seeking exposure in sub-saharan market. Decreasing country risk will facilitate this trend.

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End of Part one

SCI La Tysche

Mr.. Frederic Tape

Founder/General Manager

06 BP 851 Abidjan 06,Cote d’Ivoire

Phone: +225-(20 21 56 54

Skype: Frederic Tape

Fax: +225 20 21 56 54

Cell: +225 01 70 49 67

Email: info@blueprint Africa.com

Linkedin: http://www.linkedin.com/in/fredericnsienie

Website:http://blueprintAfrica.com

Ivory Coast Real Estate Market overview Part 1

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