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A-Z of Project Management - Profica at EAPI
The EAPI is a leading annual event focused on driving investment and development in the East African real estate sector.
This is the fifth year that EAPI has welcomed development professionals from around the continent and beyond to provide insight, debate and network around regional property matters.
Profica is a regular participant at the EAPI taking part in panel discussions and hosting the ever popular cocktail function at the end of Day 1 where attendees network and collaborate in a congenial atmosphere.
This year’s panel discussion centred around the A-Z of Project Management, and Profica’s regional office located in Nairobi was represented by the Associate Director and Head of East Africa Region, Kenneth Oigo.
Kenneth suggested that the two keys to any successful project are the project parameters and planning and the exit strategy should be clear at the start of the process.
The project brief must be defined on the basis of a realistic and robust market research which will determine the market demand from which the returns and capital expenditure can be determined. These initial stages in benchmarking the project and developing the project brief are a development management function which Profica offers across the continent and set out the framework for a successful project that needs to be adhered to for the duration of the development life cycle.
Delivery of a project represents one of the key risks to any developer and investor across the globe. Selecting and appointing the right team with the right experience and skills is essential to obtaining efficiencies and value in the development life cycle thereby managing risks for the stakeholders. In its role, Profica regularly is involved in putting the right teams together to deliver projects across sectors across Africa.
Financial closure is a very important consideration when venturing into developments. It is important to have sufficient seed capital at the start of the project to sufficiently de-risk the project from a legal, technical, cost and return point of view. Once the project is deemed viable, it is essential to have financial closure that will allow the project to proceed unhindered by cash flow constraints. Tied into this aspect is the stakeholder exit strategy and tax strategy which can have a huge impact on returns during the course of development and exit. Exit strategies are a key component in mixed use developments where various asset classes form part of one development. Each asset class attracts various investors and the completed development must be aligned from a legal and technical point of view to present the best value proposition for developer and potential investor. Profica has worked closely with stakeholders and industry experts to structure the most efficient legal and tax structures.
Profica’s focus on property and construction solutions means that we look at property solutions holistically ensuring that the investor’s objectives are met. This is achieved through structuring a project from the start and following through the life cycle based on the requirements of the end goal.