Agusto & Co. assigns “B-” rating and a stable outlook to UACN Property Development Company Plc.
This rating expires 30 June 2020.
Agusto & Co. has reviewed downwards the rating previously assigned to UACN Property Development Company Plc (“UPDC” or “the Company”) to “B-”. This assigned rating reflects UPDC’s protracted weak financial condition characterized by four persistent years rising losses before tax, three consecutive years of negative operating cash flow, perennial high leverage and recurrent inadequate working capital.
UACN Property Development Company Plc, a subsidiary of UAC of Nigeria Plc (UACN), was carved out of the real estate division of UAC of Nigeria Plc in 1997 and subsequently, all the investment properties held by UACN were transferred to UPDC via a Scheme of Arrangement. Thereafter, UPDC was incorporated as a public limited liability company and listed on the Nigerian Stock Exchange in 1998. The Company’s principal activities include the acquisition, sale, development, management and leasing of commercial and residential properties across the Country.
UPDC’s real estate portfolio mainly comprises properties in Lagos, Port-Harcourt, Abuja, Asaba, Calabar and Ibadan. The Company broadly classifies its properties into Property Stock and Investment Properties. Property Stock is the properties built for sale, while Investment Properties are commercial and residential properties developed and held for capital appreciation and rental income. Residential properties are further sub-divided into classic homes, premium homes and luxury apartments.
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This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.