Muibi Kehinde is the founder and CEO of MKH Investments, a real estate development company driven by its goal of creating sustainable real estate opportunities in Nigeria.
In an exclusive interview, Muibi Kehinde shares his journey into Real estate, how his company has fared since inception and his future expectations for MKH Investments.
Please introduce yourself, we’d like some details about your academic background
My name is Muibi Kehinde Hammed, the Chairman/CEO of MKH Group, which comprises of MKH Investment Ltd, MKH Supermarket Ltd, MKH Production and Destiny Crest Building Engineering Ltd. I started off with an OND in Mathematics and Statistics before moving on to obtain a BSc degree in Business Administration and an MSc in Project Management. I also have an honorary doctorate degree in Estate Management and Property Development from the European-American University, Republic of Panama.
How has your background prepared you for the current role you are in?
I lost my father at a young age and the only way of survival for me then was to work on construction sites. I earned between N100 to N200 per day and this was how I was able to fund my university education and also take care of my mum and siblings. I continued these jobs throughout my university years and I acquired a lot of knowledge about construction as I was involved in every aspect of building a house. These experience and knowledge shaped me a lot and were essential stepping stones for my personal growth and the company’s growth.
What were you doing before you started your company? Is this your first company or were there others?
I continued my journey into construction after leaving the university. I was involved in the supervision of housing projects for a while before I landed a job in the bank. I worked in the bank for about 5years and then I realized I had more passion for construction than banking and then I quit. I realized I couldn’t start my own construction company; hence I spoke to a friend who was already into real estate and then we started together in 2016. We ran the company together for a few years after which I used the extra knowledge I had acquired and that gave birth to Destiny Crest Building Engineering Ltd in 2018. The company has gone ahead to deliver lots of projects for various developers in Lagos, and this was the inspiration behind the establishment of MKH Investment Ltd, a full-fledges real estate development firm. Destiny Crest Building Engineering Ltd presently handles all the construction works at MKH Group.
Why real estate and not any other career path?
I started my career as a laborer in a construction firm where I was paid between N100 to N200 per day. I later advanced to earn N500 per day. My lunch was N20 while I had a daily contribution of N40. I felt at the top of the world. That instilled in me the strong affirmation that everything is possible and I could never be poor.
The turning point for me to go fully into real estate was when a client asked us to secure a property for a petrol station in Mowe, Ogun State. We were paid on a Friday, and on getting to the site on Monday, ‘omo oniles’ had destroyed all the equipment and materials brought to site. The client, a serving senator at that time, came with full force and dragged us around just to get a refund, after which he gave us some time to pay up after numerous pleas. I wondered why clients should deal directly with ‘omo oniles’ when I could serve as a middle man. I raised money and bought two plots of land as a refund to the senator. He rejected the land saying he was no longer interested. I then went back to the man who sold the land to me and asked him to sell me more on credit with the agreement that I’ll be pay back over a year. Fortunately for us, the man agreed, and that was how we started selling and remitting the money to him.
Tell us about your company, its origin, what it stands for, your mission and vision
MKH Investment Ltd has developed both high-end and low-end projects. I started with a luxury project, after which I moved into retail properties, selling properties worth less than a million naira. I completed four estates in Lagos in seven months: Haven Phase 1, Haven Phase 1 Extension, Haven Phase 2, Haven Phase 2 Extension, Haven Phase 3, Haven Phase 3 Extension, and The Garnet. We then moved to Ibadan, where we completed one of our largest projects in eight months. We also delivered 56 units of smart bungalows in I do Local Government Area of Oyo State within the same period.
We always strive to give our customers the best with our creative and innovative strategies. This has helped us to gain the trusts of our customers as we have gotten referrals from various parts of the world. We also ensure our customers get the best possible return on their investments.
Our mission is to help individuals, families and businesses harness the right real estate investment opportunities in Nigeria.
Our vision is to be the preferred real estate investment services provider in West Africa.
What would you say sets your company apart from other real estate companies?
At MKH Group, we ensure that we do not compromise the real standard. This has helped us a lot as our clients are sure that our products are strategically positioned for high returns on their investments; hence they not only subscribe to our various projects but also refer us.
We also treat our realtors as our small gods. Realtors are key to the progress of our business; hence we ensure that the services and opportunities we provide for them cannot be obtained elsewhere. We also invest in them asides the incentives given to them as we believe that when our realtors grow, it also helps the company to grow.
How has your company fared in light of the unstable economic conditions in the industry?
Every industry has faced its own fair share of the unstable economic conditions in the country; however unlike other industries, real estate is always there. Although we understand that the economy affects our clients purchasing power, we make available various payment plans that ease the burden on our clients.
Also we are diverting into the retail industry as we realized from the Covid-19 incident that our business needs an aspect that will be bringing in money every day.
What are your biggest challenges as a property developer?
The first major challenge is access to the government when applying for assets. There is no direct access to the government; hence you have to pass through many hands before your application can be processed and entering the wrong hands means wasted money.
There is also the issue of funding. Developers have ideas that can transform Lagos to one of the best cities in the world, however there is the limiting factor of funding. The economy will experience massive improvements if funds are made available to private developers as most of the funds which can be accessed are at high rates charged by banks. Projects that would take less than 9 months to complete are taking 4 years to complete as a result of limited funds and also inflation rate over that period.
How are you addressing these challenges?
I always see challenges from the progressive aspect of being opportunities in disguise. Challenges help to build my thinking ability and pushes me to do more. We have tried to build a good relationship with the government officials as they are very instrumental in this our business. Good relationship with government officials is key as they are the ones to advice you on which properties are a good buy or not. I also believe in keeping loyal people around you.
What projects do you have at hand?
The Wealthy Place is our top-notch project at this moment. It is a private commercial hub located at Ibeju Lekki. The price is N25m for 500 square meters and N50m for 1000 square meters. This price is subject to subsequent changes as a result of the type of constructions going on site. The road being constructed is rigid road which has a minimum lifespan of 30years.
The quality and wideness of road been constructed at the Wealthy Place is similar to that of Eko Atlantic. This is the biggest project owned by a private company. The C of O is in our name and this is guaranteed for the next 99 years, starting from next year. The property is facing the Lagos State Lekki World Wide Investment Ltd and about 8mins drive from Dangote Refinery.
We also have a new beach front project on the way. It is a massive project that will shake the shores of the state and across.
So many founders struggle with managing their workforce to achieve high level productivity, how have you managed this? And what’s the secret to your success?
Decision making is very important in every business. I have two teams of management; one has five members and the other six. I always put all of the ideas on the table for all management to discuss and brainstorm. These helps us to check the pros and cons and at the end, we all decide on the best decision for the company. This helps to make the best decision and also tasks the management team to always brainstorm for the company as they are aware that their ideas are well valued.
We also ensure that all our dealings are transparent. There are six approval stages for every spending of the company and this helps to ensure accountability and transparency. There is no N1 of the company that is spent without various levels of approval and this helps to prevent mismanagement of funds. We also ensure discipline in the work place as we all resume at the same time and I always close later than they do, on most days. I see them as colleagues and not staff members and I usually have meetings with them regularly. This gives every member of staff a sense of responsibility and pushes them to do better and bring more to the table.
We also organize staff retreats periodically and appreciate those who are deserving and also sanction those who aren’t. we also have incentives for our staff members as those who have been working for more than 18months are entitled to have 50% of their house rent paid for. Certain level of management are also entitled to a company car, aside the daily food and airtime allowance for every staff.
What would you consider your greatest achievement so far?
I started from nothing. I built myself from nothing and over years, with God, hard work and consistency, I’ve built a brand that has become a force to reckon with.
Are there any awards?
Yes, there are, I’ve received awards that include;
Winner, Maya Awards Africa, 2021 CEO of the year, Peace Legends Award 2021, Innovative Entrepreneur of the year, Africa Youth Collation 2021, Ambassador of Youth Progress in Africa, Golden Role Model Award 2020, Icon Of Hope/Humanitarian Services, National Association Of Polytechnic Students (NAPS) 2021, Icon of Humanity, Trans-African Youth Development Initiative (TAYDI) 2021, Most Productive and Friendly Youth Firm In Africa, Northern Youth Forum, 2021 Seriki South West and Nelson Mandela Leadership Award of Excellence and Integrity 2022, West Africa Youth Ambassador.
How do you give back to the society, are there any CSR projects (Corporate Social Responsibility)?
I have a lot of students under my scholarship scheme in different primary, secondary, and tertiary institutions over the country. I also empower people with skills and give them employment. I contribute to the security in my environment and also the social infrastructure in my immediate community.
What’s your projection of MKH Investment in the near future?
We have a very clear goal. In just two years, we have grown to a worth of N10billion in assets, and we expect to be worth N1trillion in the next ten years. We also have set goals to increase the amount of branches for the MKH Supermarket, increased yields from MKH Agro Ltd, increased branches for the MKH Destiny Oil and Gas and MKH Production.
Do you have any advice for people or young entrepreneurs looking to venture into real estate?
It is important for young people to surround themselves with loyal people. I cannot overemphasize the importance of loyalty. It is better to build your company around loyal people than smart people. I would rather invest in and train loyal people to become smart because smart people can tend to betray you on the long run.
Young entrepreneurs should also not see competitors as adversaries. Study your competitors and learn from them. Keep a good relationship with people in the same business with yourself as the right information can take you to heights unimaginable.
It’s also important to understand what process means. Young people these days want to take short cuts. I hate short cuts. Going through the due process will help you understand how to behave and handle mistakes.