A better acquisition mandate

The buyer should state what the acquisition must accomplish. A family residence, rental investment, distribution centre, development site and corporate office require different criteria. Location matters through that purpose: customer access, commuting, workforce availability or proximity to supply routes may be more useful than a neighbourhood's reputation.

An operational buyer should define the cost of failure. A warehouse with inadequate turning space may disrupt distribution even if its rent or purchase price is favourable. An office that requires lengthy alterations can delay business plans. A development site with uncertain access may create costs that outweigh a discount on land.

The desired holding period should also be explicit. A buyer expecting income over many years can assess capital works differently from one seeking an early resale. An acquisition intended to preserve flexibility may favour a structure or asset type that permits a wider range of future uses.

The mandate should identify requirements that determine eligibility and preferences that guide ranking. Clear ownership rights, lawful access and sufficient space for the intended use may be essential. A preferred frontage, particular finish or proximity to a landmark may allow compromise.

A scoring system can compare eligible options, but it should not allow cosmetic advantages to offset a failed essential condition. An attractive interior cannot compensate for a use that cannot be approved. The buyer should decide who can authorise an exception and what evidence is needed.

New York provides a useful illustration of evidence-led screening. ACRIS offers recorded-document access for four boroughs, while the city's Zoning Resolution addresses permitted land use and development. For a Nigerian mandate, the corresponding task is to specify the ownership and planning evidence required from the relevant authorities and advisers for the particular location. [2, 6]

Area requirements should explain the measurement that matters. Land area, gross building area and usable internal space answer different questions. A building can meet a quoted size and still provide insufficient functional accommodation. Site layout, access and service requirements should be assessed alongside the headline measurement.

A budget should cover the amount required to acquire the asset and make it fit for the intended purpose. Legal and professional fees, applicable charges, refurbishment, infrastructure, immediate repairs and working reserves may materially affect that commitment. The treatment of these items should be clear when instructions are issued.

Financing needs a realistic sequence. Evidence of available funds, loan approval conditions and completion timing determine whether an offer can be executed. France's official guidance on mortgage conditions distinguishes a firm offer matching specified loan terms from a simple agreement in principle. The practical lesson is to identify the funding evidence required for commitment, while applying the law and lending conditions of the actual transaction. [9]

For a cross-border buyer, the mandate should identify the currency in which affordability is measured. An asset quoted in naira may be funded from sterling, dollars, euros or riyals. Currency movement, transfer timing and the eventual route for income or disposal proceeds need consideration. A foreign-currency budget should be accompanied by an agreed method for reviewing the local-currency ceiling.

A buyer comparing opportunities in Nigeria and Egypt should assess the currency of funding, rent and eventual disposal proceeds for each option. A model should test whether local income can service the proposed borrowing and what currency movement would exhaust the buyer's financial reserve. The comparison becomes useful when it exposes the cash consequences of a mismatch between income and obligations.

An investment mandate should explain whether direct ownership is necessary. The choice matters when comparing Nigerian property with REIT units on NGX, Brazilian fund securities on B3 or shares in South African property companies. Instructions should state whether managerial discretion, borrowing within the investment vehicle and movements in traded prices are acceptable features of the desired exposure. [11, 12, 13]

The distinction is strategic. Direct ownership may offer greater control over use and works, while concentrating capital in one asset and placing management responsibilities on the owner. A listed investment provides a different degree of control and a different mechanism for entry and exit. The suitability of either route depends on the investor's objectives and the actual security or property under consideration.

An operational acquisition requires a different answer: units in a fund cannot provide possession of a warehouse needed for a business. The mandate should therefore begin with the required outcome and then select the appropriate form of ownership or participation. Market availability should inform the choice without displacing the original purpose.

The search process should use stages. Initial screening can rely on a concise asset summary, stated document position and current images. A shortlisted opportunity then merits inspection and preliminary commercial analysis. Detailed legal, technical and financial work follows when the asset remains credible against the mandate.

Each stage should have a decision owner and a recorded outcome. Rejection reasons help refine the search and reduce repeated submissions. A shared asset reference, source record and contact history can prevent parallel introductions from creating inconsistent instructions or avoidable fee disputes.

Off-plan acquisitions require additional screening because the promised asset is still being delivered. Saudi Arabia's Wafi platform supports developer qualification, licensing and enquiries about licensed projects. The lesson for any Nigerian mandate is to specify the project, developer, funding and completion evidence required, with advisers checking the local framework. A completed apartment and a contractual promise of a future apartment need different investigations. [15]

The intermediary's role should also be precise. Authority to source or negotiate is different from authority to commit the buyer. Reporting frequency, fees, exclusivity, confidentiality and potential conflicts should be documented. Offers should identify assumptions and conditions so that search activity does not create an unintended commitment.

A decision paper should return to the original criteria. It should explain suitability, total expenditure, verified evidence, outstanding issues and the proposed transaction conditions. Alternatives deserve consistent treatment so that an impressive presentation does not receive an easier assessment than a less polished one.

The buyer should know what would change the recommendation. A reduced price may address expenditure, while a legal restriction or unsuitable access may remain decisive. Outstanding work should have a responsible adviser, deadline and consequence for proceeding.

A better mandate reduces uncertainty at the point where uncertainty is cheapest to resolve. It gives the search direction, preserves the buyer's attention for credible opportunities and creates a defensible basis for commitment. The eventual acquisition can then be judged against a defined purpose rather than the momentum of the transaction.