This paper aims to evaluate the strategies adopted by Nigerian banks to integrate the management of their real estate assets into the overall business objectives.
Questionnaires were distributed to the corporate real estate managers of the 24 recapitalised banks in the country and supplemented with interview. The study adopted the descriptive method of percentages, mean and proportion methods for analysis.
The study found that Nigerian banks have distinct real estate units that manage their substantial real estate holdings, which they revalue at the open market basis every six months. The study also found that in spite of the fact that Nigerian banks have substantial real estate holdings, employees of the real estate unit spend more time on the core business of the organisations than on real estate activities. While some of them have sole responsibility for real estate activities, others are gradually shifting attention to the importance of their real estate assets.
The study has major implications on corporate real estate management and banking practice in Nigeria. There is the need for organisations to re‐direct their focus towards the strategic perspective of CRE as an important and profit inducing tool of business. This may require exposing CRE executives to requisite training that will equip them for effective service delivery.
Inefficient real estate management can result in huge loss of shareholders fund by investors and subsequently affect the economy.
The study identified real estate as a “turn around” tool that can be adopted by bank executives to improve their financial status and a pro active step towards building an efficient and virile profession to handle the emerging corporate real estate management sub discipline in real estate.
