Edward Akinlade, group managing director, Haldane McCall Plc speaks on how the company strengthens investor confidence by achieving sustainable profitability while leveraging on diversified income streams, strong capital framework and disciplined strategy, write Iheanyi Nwachukwu. Excerpts
How does Haldane McCall intend to sustain profitability going forward given the uncertainty in the operating environment?
Haldane McCall is pursuing a disciplined, multi-pronged strategy to sustain profitability across economic cycles. The Group deliberately combines one-off revenue from property sales with stable, recurring income from its hospitality operations under the Suru Express Hotels brand.
Property sales provide upfront cash flows to fund growth, while the hotel portfolio delivers predictable earnings that support balance-sheet stability. Capital deployment is focused on high-potential residential and hospitality projects, including the 1,200-unit MajidunEstate and the expansion of Suru Express Hotels. All investments are subjected to rigorous feasibility studies and return-on-investment (ROI) analysis to ensure strong margins and long-term shareholder value.
Cost efficiency remains a core priority. The Group continues to optimise construction and operating costs, improve hotel margins, and leverage scale across projects. Geographic and project diversification further reduces concentration risk, while structured development phasing and flexible payment plans improve sales velocity and cash conversion. Funding from the proposed N250 billion debt programme, alongside disciplined equity utilisation, will support growth while preserving balance-sheet strength and shareholder returns.
What are Haldane McCall’s principal business segments?
Haldane McCall operates as a dual real estate and hospitality group. Its residential development activities are conducted through Suru Homes Limited, while Suru Express Hotels manages the Group’s budget and mid-scale hotel portfolio. This dual structure enables the Group to generate both transactional income from property sales and recurring revenue from hospitality operations, resulting in a more resilient and diversified earnings base.
How is the Suru Express Hotels segment performing?
Suru Express Hotels continues to record steady and sustainable growth. The hotels are strategically located in high-demand Lagos corridors, including Ikeja GRA, Ikorodu, and Surulere, benefiting from strong commercial activity and consistent demand for quality, affordable accommodation.
Performance is supported by rising occupancy rates, efficient cost management, and standardised operating systems. The Group is actively expanding into additional Nigerian cities, leveraging brand recognition and operational expertise. As new hotels commence operations and existing properties mature, the hospitality segment is expected to contribute an increasing share of Group revenue and profitability over the medium to long term.
What residential projects does the Group currently have underway?
The Group’s flagship residential development is the Majidun Estate in Ikorodu, a 1,200-unit project designed to address growing housing demand. Completed developments include 48 residential units in Porto-Novo, Benin Republic, and 34 units in Ketu, Lagos. Majidun represents a key growth driver for future revenue, asset expansion, and recurring development activity.
What are the Group’s plans for raising additional capital?
Haldane McCall plans to raise capital through a balanced mix of equity and debt instruments to support medium- and long-term expansion. Shareholders have approved a rights issue, allowing existing investors to participate proportionately while managing dilution.
In addition, a N250 billion debt issuance programme has been approved and structured in tranches to optimise funding costs and align repayments with project cash flows. Proceeds will be deployed primarily towards residential developments and the expansion of the Suru Express Hotels portfolio, ensuring liquidity, financial flexibility, and sustainable value creation.
How does Company view the Group’s growth outlook and strategic direction?
Management remains confident in Haldane McCall’s growth prospects, underpinned by strong structural demand for housing and increasing domestic travel in Nigeria. Suru Homes is well positioned to address the country’s housing deficit, particularly in the affordable and mid-income segments, while Suru Express Hotels benefits from urbanisation trends and demand for standardised, cost-efficient accommodation.
The dual business model enhances revenue diversification and operational synergy. A growing land bank, quality assets, and an active development pipeline provide a solid platform for expansion, with a continued focus on disciplined capital allocation, geographic growth, operational efficiency, and margin improvement.
What is the expected timeline for the Majidun Estate and hotel expansions?
The first phase of the Majidun Estate is expected to be delivered within the next 12 months. Several Suru Express Hotels are also under development, with funding from the debt programme expected to accelerate construction timelines and project delivery.
How does Haldane McCall plan to collaborate with government to address Nigeria’s housing deficit?
The Group actively seeks public-private partnerships (PPPs) with federal and state governments to address Nigeria’s housing shortfall, particularly in the affordable segment. Potential collaborations include land provision, infrastructure support, planning approvals, and housing finance initiatives.
By combining its land holdings and development expertise with government support and mortgage institutions, Haldane McCall aims to deliver commercially viable, policy-aligned housing projects that improve affordability and accelerate home ownership, while supporting national development objectives.
Are there specific government programmes the Group intends to leverage?
Yes. The Group intends to leverage federal and state housing initiatives, including the National Housing Programme (NHP) and mortgage schemes administered by the Federal Mortgage Bank of Nigeria (FMBN), such as the National Housing Fund (NHF). These programmes offer access to lower-cost financing, incentives, and streamlined approvals, enhancing project viability and reducing execution risk. State-level housing and mortgage support schemes also provide infrastructure support, tax incentives, and faster regulatory processes.
Does Haldane McCall plan to invest outside Nigeria?
The Group is selectively evaluating opportunities in West Africa, with a focus on Ghana and Benin Republic. These markets are characterised by growing urban populations, housing deficits, and relatively favourable regulatory environments. Any expansion will be phased and may involve local partnerships to mitigate risk and ensure capital efficiency.
How will international expansion be funded?
International projects will be funded through a combination of retained earnings, operating cash flows, proceeds from the N250 billion fixed-income programme, and selective equity participation where appropriate. Debt will be raised in tranches aligned with project timelines to manage borrowing costs and currency exposure. Joint ventures may be utilisedwhere local expertise provides strategic advantage, with all investments subject to strict ROI and risk-management criteria.
How does Haldane McCall assure shareholders of sustainable returns?
Shareholder returns are supported by tangible assets, recurring revenue streams, and disciplined capital management. All projects undergo rigorous feasibility and ROI assessments, supported by strong governance and cost control. The Group’s dividend policy of distributing 30 percent of net profit is underpinned by stable cash flows and phased project completions, ensuring sustainability while funding growth. Transparent reporting and active shareholder engagement further reinforce confidence.
What risk-management mechanisms support the Group’s growth strategy?
Haldane McCall applies a comprehensive risk-management framework encompassing feasibility studies, cost monitoring, market analysis, and scenario testing for all projects. The Group closely monitors macroeconomic trends, regulatory developments, and construction input costs. Diversification across projects, regions, and business segments, combined with prudent leverage, mitigates concentration and execution risks.
How does the Group balance property sales with recurring hotel income?
The Group maintains a deliberate balance between property sales and recurring hospitality income, optimising cash flow while ensuring that both segments complement each other to enhance overall earnings stability and profitability.
What is management’s message to shareholders regarding the medium-term outlook?
Management is committed to positioning Haldane McCall as a consistently profitable, dividend-paying company. Over the next two to three years, the Group will leverage its asset base, residential pipeline, and strategic land holdings to generate predictable cash flows. Capital allocation will remain disciplined, governance robust, and operational efficiency prioritised.
With a 30 percent dividend policy, growing recurring income, and phased expansion in Nigeria and selected West African markets, Haldane McCall is well positioned to deliver sustainable shareholder value and regional competitiveness.
