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JOHN KALU is the MD/CEO, Sequola Realty Limited, a new generation real estate firm with ambitious footsteps into the crowded Nigerian market. In this interview with CHUKA UROKO, Property Editor, he shares insights into the opportunities and challenges on the way of young real estate entrepreneurs. He also speaks on the impact of inflation on real estate and reveals how his company became the first in West Africa to accept Cryptocurrency as a payment option for properties. Excerpts:
Beyond the name John, what else would you like the public to know about you as a personality?
I have a very diverse personality, and how I manage to separate them in different instances, to some extent, surprises me. But I see that as a skill, and that’s a trump card for me. I also like to see myself as a sponge. I am teachable and very receptive to all kinds of ideas. I also have obsession for perfection.
The real estate market in Nigeria is a tough and crowded space. You are barely one year into the market, what has been your experience so far?
It’s been amazing really, but quite challenging. I have previously worked at a real estate firm for over 2 years and that helped to shape my knowledge of the market, and lay the foundation for a lot of the things we do today at Sequola Realty. Nevertheless, being in a saturated market such as ours, you have to be cutting-edge to stay ahead of the curve. The market is not fully regulated, so there’s practically more than 4 agencies ready to service one client. So, for us, to stay ahead, we have to be customer-centric. This is why we value clients enough to put them ahead of everything. It gives them this feeling of “you’re the only person we’re working with now, and you’ve all our attention”.
For many young real estate firms, seed capital is always a huge challenge. But you have a different story with over N2 billion worth of property. Tell us how this was made possible in 12months.
It’s N2.2B in 9 months. I had cut my teeth at a real estate firm before now and so that helped a lot. We have worked with a lot of clients and agents whose investment in Sequola Realty at the time was the trust of the person behind the brand. Trust has been a major factor in closing that amount of deals in less than 10 months. Sometime last year, I had a meeting with a client at a hotel and a friend of his casually walked by to say hello. He was gracious enough to introduce me to the friend and in less than 7 weeks after that meeting, I sold a property he purchased for N85,000,000. 5 months later, he bought more for N115,000,000. This man wasn’t even in the country. That could never have happened if we hadn’t invested in being transparent and building trust in our buyers.
You became the first real estate firm in West Africa to accept Cryptocurrency as a payment option for properties. How did this work for you as a new comer into real estate market?
Honestly, I could have said we were the first real estate brokerage firm in the world to accept crypto and I would get away with it. As at when we carried out our research, not a single real estate firm, even in the US, accepted Cryptocurrency as a payment option. Therefore, I could very well get away with that, like I said. Having said that, implementing Crypto as a payment option was borne out of the need to better serve foreign buyers. So, partnering with a Crypto firm at the time was an easy sale. We wanted to create a simpler, more convenient means of payment for properties for buyer in Diaspora. We did and it was exciting.
Your company has a thriving model in which the focus is on the client and not the market. What does this mean and what opportunities or advantages does it offer?
If I want to purchase a car and I walk into a car lot and the sales person doesn’t accord me equal service as they are doing with the other prospective buyers present, I will probably never go there again. Our model recognises that the customer comes first. We have therefore created a system, beyond customer support, that aides that model.
Read also: How real estate investment can help diversify asset portfolio, mitigate risk – Arc Homes CEO
Apple is perhaps one of the most customer-focused organisations in the world. They innovated around customer-centricity and introduced in-store Genius Bars. That’s going beyond just providing support. They recognised not just what customers wanted, but what customers needed –before they even knew they needed it. In this light, we have created an end-to-end model that allows us to create more value for our clients even after they purchase a house or rent one from us.
For example, we recently partnered with a logistics firm to provide exceptional relocation service when they buy or rent a home from Sequola Realty. We created a service we anticipate they will need before they even need it, because they will eventually need it when they get a home. For us, creating a one-true personalized service experience is key.
Inflation has done much harm on Nigeria’s economy and its various sectors. How is this affecting real estate which mirrors the economy, and you as a player in the sector?
There has been a quick reaction to this effect in all industry actually. Whilst the value of properties is characteristically performing well in a rising rate, it’s becoming harder for new buyers to close deals. Its impact is beyond real estate. Once overall price level rises, there tends to be fewer products and services. The recent wave has disrupted market pricing systems, and this forces people to make minimal purchases. The past quarter has seen reductions in home purchases and even people leasing are being forced to rethink their decisions.
We are constantly readjusting our belts because of how bumpy the market has become as a result of inflation on our already poor, underperforming economy.
For you as a young company, growth is a major concern. What’s your vision of Sequola Realty in the next 5years operating in a challenging business environment like Nigeria?
We want to continue to build a brand that continues to innovative around creating a better service experience —and this will be mirrored in some of the development projects we will execute. Though it’s very tough now considering how terrible our economy is, we are currently speaking to some investors, and are also open to speaking to more of them who are interested in venturing into real.
