Haldane McCall Plc – Strategic Growth in Affordable Housing and Budget Hospitality

Executive Summary

Haldane McCall Plc, a Nigerian-based property and hospitality investment company, continues to position itself as a leader in affordable housing and budget hotel operations under the “Suru Express” brand. Operating primarily in Nigeria and the Republic of Benin, the Group plans to expand across West Africa to capitalize on growing urbanization and rising demand for affordable accommodation. Following its successful listing on the Nigerian Exchange (NGX) in November 2024, which introduced 3.12 billion shares at N3.84 per share and an initial market capitalization of N11.99 billion, Haldane McCall is strategically placed to generate one-time revenue from property sales and recurring income from hotel operations, offering a scalable and balanced business model.

Operational and Strategic Highlights

1. Real Estate Development

• Completed Projects: Delivered 48 housing units in Porto Novo, Benin Republic, and 34 units in Ketu, Lagos.
• Ongoing Projects: Developing a 1,200-unit housing project in Majidun, Lagos, targeting underserved urban markets to meet growing demand for affordable housing.
• The Group’s asset-backed value and property pipeline position it for strong revenue growth and potential stock appreciation.

2. Hospitality Expansion

• Suru Express Hotels: Continued expansion of budget hotel operations to strengthen recurring revenue streams.
• Focus on providing affordable, high-quality accommodation in urban centers aligns with demographic trends and urbanization-driven demand.

3. Capital Raising and Strategic Financing

• In May 2025, shareholders approved a capital raise of up to N250 billion through a rights issue and debt issuance.
• Proceeds will accelerate the development of housing units and hotel assets, supporting long-term growth and market penetration.

4. Market Positioning and Growth Drivers

• Haldane McCall benefits from rising demand for affordable housing and budget hospitality due to Nigeria’s youthful and urbanizing population.
• Strong historical double-digit revenue and net income growth reflects operational efficiency and effective capital allocation.
• Consistent dividend policy combined with stock appreciation potential provides a compelling total return proposition for investors.

Outlook

Haldane McCall is well-positioned for sustainable expansion, underpinned by:

• Accelerated delivery of affordable housing projects in Nigeria and Benin.
• Expansion of Suru Express Hotels to generate recurring income streams.
• Strategic capital raising to fund development and operational scalability.
• Strong asset-backed balance sheet, enhancing investor confidence and potential for value creation.

Analyst Commentary

Key observations include:

• Balanced Business Model: Combining one-time property sales with recurring hotel revenue provides resilience and diversified income streams.
• Growth Potential: A deep property pipeline and expansion into urban centers indicate significant upside in revenue and market share.
• Market Tailwinds: Urbanization, demographic trends, and increasing demand for affordable housing and budget hospitality provide strong macroeconomic support.
• Investor Confidence: NGX listing enhances transparency, access to capital, and visibility, supporting long-term shareholder value creation.

Conclusion

Haldane McCall Plc demonstrates a strategic and scalable approach to affordable housing and budget hospitality across West Africa. With ongoing property development, expansion of Suru Express Hotels, and strong capital-raising initiatives, the Group is well-positioned to deliver sustainable revenue growth, recurring income, and shareholder value in a high-demand, urbanizing market.