Invest in Smart Residence Limited’s ₦2.5 Billion Series 2 Commercial Paper.

Yemi

— 4 min read
Invest in Smart Residence Limited’s ₦2.5 Billion Series 2 Commercial Paper.

AssetBase is pleased to announce an exciting opportunity for investors to participate in Smart Residence Limited’s (SRL) ₦2.5 billion Series 2 Commercial Paper under its ₦2.5 billion CP Programme. This listing offers an attractive investment opportunity in one of Nigeria’s most dynamic and rapidly growing hospitality companies, with the added benefit of earning competitive yields.

An Overview of Smart Residence Limited (SRL)

Smart Residence Limited, also known as SRL, is a fast-expanding hospitality business with a primary focus on fully furnished short-let apartments. Based in Abuja, Nigeria, SRL caters to a diverse client base, including individuals, corporate organizations, tourists, and general guests. The company operates under the well-known trade names Gidanka and Home-Away, offering guests luxury, comfort, and unparalleled service.

Over the past four years, SRL has successfully established a robust portfolio, including properties such as The Residence, The Glass Residence, The Destination, and Home-Away. Two additional high-end properties, The Definition and Uptown, are set to join the portfolio by Q1 2025, expanding the company’s reach and further solidifying its position in the competitive hospitality market.

Exceptional Recognition and Awards

Smart Residence Limited’s impressive growth trajectory has been recognized across the industry. One of its properties, The Destination, recently won the Best Luxury Business Hotel award at the Hotel Managers Award 2024. This recognition places SRL in the league of industry leaders such as Radisson Blu Anchorage Hotel and The Wheatbaker Hotel.

This success is not just about awards but also about the company’s commitment to excellence, ensuring that each property meets the highest standards of service and comfort. With 8,300+ unique guests hosted from over 60 countries, SRL is proving that it’s not only growing in numbers but also in reputation.

Financial Performance and Growth

Smart Residence Limited’s strong financial performance further cements its position as an attractive investment option. The company has demonstrated impressive revenue growth, improved profitability, and consistent asset expansion, highlighting its operational effectiveness and the scalability of its business model.

  • Revenue Growth: SRL has achieved a Compound Annual Growth Rate (CAGR) of 136.04% over the past five years. This remarkable growth reflects the company’s ability to adapt to market trends, enhance its services, and capture a larger market share.
  • Improved Profitability: The company has dramatically improved its profit margins from -4.8% to 34%. This shift demonstrates SRL’s strong pricing power and market dominance within the hospitality sector.
  • Asset Growth: SRL’s total assets have grown substantially, increasing from ₦302 million in 2020 to ₦8.82 billion in 2024. This represents a CAGR of 96.4%, an impressive achievement that illustrates the company’s ability to scale effectively and generate value for its stakeholders.

These financial highlights underscore Smart Residence Limited’s solid growth profile and its ability to navigate a competitive environment while delivering sustained returns.

Creditworthiness and Trust

SRL has a credit rating of A1 from DataPro and BBB from Agusto, reflecting its stable financial position and the reliability of its management. These ratings further support the company’s ability to honor its obligations and fulfill investor expectations.

In its debut capital market issuance, SRL’s Series 1 commercial paper achieved a subscription rate of 91.3% on an issue size of ₦1 billion. This successful offering demonstrates strong market confidence in SRL’s financial health and commitment to maintaining transparency and accountability.

The Series 2 Commercial Paper Offering

The Series 2 Commercial Paper offers a highly competitive opportunity for investors, with attractive yields and flexible investment terms. Here are the key details of the offering:

  • Tenor Options: 269 days
  • Implied Yield: 31.0%
  • Expected Yield: 22.9%
  • Minimum Subscription: ₦100,000
  • Offer Open Date: January 22, 2025
  • Maturity Date: October 23, 2025
  • Asset Name: Smart Residence Limited Commercial Paper
  • Asset Category: Debt (Commercial Paper)
  • Asset Location: Nigeria

With an allocation size of ₦30 million, the offering provides an accessible entry point for investors interested in this high-performing asset. Given the overall market conditions, the expected yield of 22.9% is particularly attractive, making this an opportunity that savvy investors will not want to miss.

Why Invest in SRL’s Commercial Paper?

There are several reasons why Smart Residence Limited’s Series 2 Commercial Paper is an attractive investment:

  1. Proven Track Record: SRL has demonstrated its ability to execute and deliver consistent performance. The company has honored past commercial paper obligations, showcasing its commitment to reliability and investor trust.
  2. Competitive Returns: With an implied yield of 31.0%, this commercial paper offers a highly attractive return on investment, especially compared to other market investment opportunities.
  3. Strong Growth Potential: The hospitality sector in Nigeria is poised for continued growth, and SRL is well-positioned to capitalize on this expansion. The company’s ability to increase its portfolio, maintain high occupancy rates, and offer top-tier service gives it a competitive edge in a growing market.
  4. Solid Credit Ratings: SRL’s A1 and BBB ratings from DataPro and Agusto, respectively, make it a creditworthy and low-risk investment. Investors can feel confident that their funds are in safe hands.
  5. Transparency and Accountability: SRL’s transparent financial reporting and consistent payouts on previous commercial papers reflect the company’s dedication to maintaining open communication with investors.

Conclusion

Smart Residence Limited’s ₦2.5 billion Series 2 Commercial Paper presents a unique opportunity for investors seeking to earn attractive returns while investing in Nigeria’s rapidly growing hospitality sector. With its solid financial performance, strong credit ratings, and impressive growth trajectory, SRL offers a low-risk investment with high potential for returns.

The offering is available exclusively on AssetBase, making it easy for investors to participate and gain exposure to this high-performing asset.

Investors looking to diversify their portfolios and benefit from competitive yields should take advantage of this exciting opportunity. Visit [AssetBase] today to learn more and start investing.

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