Ownership, Condition and Sufficiency of Real Estate in Some Selected Nigerian Universities: A Critical Profile Study.
Abstract
This research sought to determine the status of the real estate assets (quantity of the leased and owned properties), the conditions and sufficiency of the real estate of the Universities in South Eastern part of Nigeria.
The objectives of this study were to ascertain the existence of an inventory or asset register for the university real estate and determine the status of the corporate real estate of the university.
In this research, the Cross-sectional study design was applied. This was done in combination with purposive sampling technique.
That is to say only universities with dependable funding sources for example federal universities, universities with sizeable quantity of corporate real estate and located within the south eastern region were chosen for use as samples in this research.
The three data collection instruments applied in this research were interview schedule, physical inspection and questionnaire.
The data collected wascoded and summarised through the use of the Microsoft excel software. The quantities of the leased and owned properties were not known as at the time data was analysed.
However, estimates of the percentage values of the leased properties stood at 2% while the owned properties stood at 98%. The conditions of the real estate in the universities were assessed on a three point scale of Bad, Average and Good.
The overall condition of the university real estate was described by about 75.0% of the respondents as being average. The overall assessment of the sufficiency of the university real estate was described by about 75.0% of the respondents as being insufficient.
Valuation, real estate inventory or asset register and a good property management information system was highly needed in the universities.
Introduction
Background Of Study
The potential importance of the changing corporate real estate (CRE) environment has been recognised by leading researchers in the USA.
The first sign of emerging discipline appeared in 1983 when Zeckhauser and Silverman published an article, Rediscovering your company‘s real estate‖ in Harvard Business Review.
From the late 1980ies articles began being published in the US real estate professional journals in significant numbers.
A summary of US literature about CRE published in 1996 shows that decisions concerning CRE have a significant effect on the value of a business.
Real estate decisions need to be consistent with the overall corporate strategic plan and those making such decisions need to be aware of empirical evidence indicating the financial market’s reactions to real estate decision, (Wheatherhead, 1997).
Many corporate organisations in Africa do not know about their real estate and very few published articles on CRE can be found within the continent
Real Estate is an asset of strategic importance, representing a significant proportion of total assets and is the second most expensive cost after labour.
It is the fifth corporate resource besides Capital, People, Technology and Information, but seems to be forgotten.
Based on latest estimates it seems that Real Estate (at market values) represent, an average, around 20-30% of total assets in the United States of America and 30-35% in the United Kingdom, in Western Europe these figures might be in general even a bit higher (Luokko, 2004).
References
Brown, R.K. & Arnold, A.L. (1993).Managing Corporate Real Estate.Wiley, Chichester.
Brueggeman, W. and J. Fisher, (2001) Real Estate Finance and Investments, McGraw Hill, USA.
Craig, W. (2011).Proprietor of Belvoir Camberley.
Joroff, M., Louargand, M., Lambert, S. & Becker, F. (1993). Strategic management of theFifth resource: corporate real estate. Industrial Development Research Foundation, Atlanta.
Liow, K. H. and Nappi-Choulet, I. (2007). ―Corporate Real Estate: Perspectives, Evidence and Issues‖. Institute of Real Estate Studies {IRES} Working Paper Series.
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