June 2014

Case Study: Ernest Hanson - The Accidental Property Developer

The Changing Real Estate Landscape in Ghana

Who We AreA spider’s web is a fascinating creation of nature, depicting precision and connections. When I started Silk Solutions, I wanted to establish a bespoke financial and investment advisory concierge service for Ghana’s up and coming high net worth individuals - a place for the emerging investor to discover unique, safe, and profitable financial and investment opportunities across sectors and industries in Ghana.

At Silk Solutions, we work with our clients to source and build bespoke investment portfolio. But we don’t stop there . We provide a range of investment ancillary services to ensure that, just like a Spider’s web, your investment journey with us is seamless.

Our Unique Selling PointWhat We Do

• We provide clients with strategic, tactical information, impeccable evidence based research and analysis from which they can make business and investment decisions

• We understand and value efficiency and service excellence. Our promise is to deliver a professional and seamless service, connecting you with all the backward and forward linkages required for your business needs

• We provide honest identification of and active management of business and investment risk, offering the best fit approach to achieving your outcomes

Purveyors of bespoke financial and investment advisory concierge services, embracing: Information gathering on

coming to Ghana, living in Ghana and doing business in Ghana

Business registration Industry and sector research Opening bank accounts Identifying appropriate

business partners Setting up meetings and

event management Car hire and hotel bookings Property investments Financial and investment

advisory services Special projects investment

(agriculture, mining etc)

Our Clients

• There are a number of firms and organisations that make it possible for us to do what we do expediently and professionally for our clients. We are proud to be associated with the following firms, who are our business partners:

• Beaufort Properties – developers of superior luxury apartments and town houses in Accra’s most sought after locations

• Songhai Advisory – is a bespoke business intelligence consultancy providing critical insight on market opportunities in Sub-Saharan Africa

Our Partners

• Ghanaians in the diaspora• High net worth individuals • Young professionals - the

emerging investor

Elvina Quaison - Director

Our CEO, Elvina Quaison, is a practiced Business and Migration consultant with over a decade of professional experience in bringing fresh business insight and intelligence to clients vis-à-vis their business and investment interests.

As a Business and Migration consultant, Elvina also has deep, remarkable insights into the business and investment needs of Diasporans. She demonstrates strategic and operational capacity and has strong connections with African and Africa business focused networks in the UK, US and across Africa

Business in Ghana

Ghana has been recognised by the World Bank Doing Business Report 2014 as the "Best Place for Doing Business in the ECOWAS Region”

Ghana had an economic growth rate provisional of 7.4%

Sectorso Agriculture, Food Processing, Oil & Gas among others o Construction/ housing – Shortage of approximately 1 million

homes

Ghana’s Property Development Sector

Historical Situation

• Live at home with parents until can afford to build or inherit family home

• Buy/inherit plot of land and build your own home Land issues Slow build – cash and carry

Ghana’s Property Development Sector

• Diaspora building homes in Ghana while they are abroad Cash and build Unreliable quality Trust issues can mean slow build as owner only builds on their

holidays Stress – Money, theft, poor quality workmanship Land issues – Double sell/ encroachment/

Change: Identifying a Demand

• 1991 – Regimanuel Grey Joint partnership Ghanaian and American company Have since built 2000 homes

- Buy off plan- Pre-decided design (room for small adjustments)- Land title all sorted out- Build management all sorted out- Gated community- Price established an elite neighbourhood

Regimanuel Estates

Demand Changing• Ghana develops and attracts greater levels of expatriate workers

Shortage of acceptable accommodation Houses no apartments Need for greater levels of home staff (Security, Ghana, House

help)• 2000+ Increased level of returnees coming to Ghana• Emerging Middle Class

Late 20s Early 30s Young professionals Young families Western living exposure Looking for affordable homes in Ghana

Opening the Market

• Introduction of Ghana home Loans –making mortgages more available to people 2007/2008 it started To date has given $60 million plus in loans

• Shortage of homes 1.5 million Need to be clear on:

o Where geographically is the shortageo What type of homes are requiredo What price range the homes need to be

Current Situation

• Affordable homes $30,000+ Outskirts of Accra Simple structures Basic fixtures and finishings

• Luxury Homes $150,000+ Central Accra Thoughtful design High end fixtures and fittings

Ernest Hanson: The Accidental Property Developer

Sent in 1989, as a 9 year old to boarding school in the United Kingdom

Parents remained in Ghana.

After finishing school at Clifton in Harrow, he did an undergraduate at the London School of Economics where he graduated in 2001

Met both future business partners at school and university respectively

UK Education system gave him contacts for his current endeavors

Work in Management Consulting and Investment Banking in the UK

Long hours, aggressive cultures but gave him a good appreciation for hard work, aiming high and achieving high standards

Returned to Ghana in 2008 to work at Viasat as their Business Development Manager to Africa

Provided a soft landing back into Ghana

Actually started his first real estate project in Ghana, Asantawana Gardens, in 2007 while still in the UK

Initially thought he would do student housing but luckily avoided that pitfall

Current business partner told him he was mad

Lots of mistakes, but luckily it was a success

In 2009 he started Clifton Homes with a friend from school

Had loads of fun, and sold 4 developments in 4 years

Still limited skills

Success: First project

• Central location: Shiashie/ East Legon• Modern structure• Good standard fixtures and fittings• Apartments = cheaper homes• Responded to aspirational lifestyle• Sold out 6 developments

Growth: Beaufort Properties

• Lower end of the high end• Highly desired location• Maximise space so economically sized

apartment, highly engineered to maximise space

• Relevant amenities for modern living• Built with investment aspect and living

needs in mind

Growth: Beaufort Properties

• Identifying trends• Locating your Niche• Sourcing valuable partners• Having a real passion about what you are

doing• Constantly learning• 75% sold still in building phase

Business Lessons• Look at the social and cultural development of the country

• Identify the need

• Identify where you can come in and how you can add value

• Recognise the challenges and take time to locate reliable solutions

• Think Global act local

• Skills are key: source from within or bring in what is needed with a view to developing that skill in house

Helpful Links

• www.gipc.org Ghana Investment and Promotion centre

• www.beaufortghana.com

• www.ghanahomeloans.com

• www.silksolutionsglobal.com

Next Steps

We look forward to working with you, pleasecontact:

Elvina Quaisonelvina@silksolutionsglobal.cm

+233 543 503 166

Thank You