Popular Nigerian mall and destination, Ikeja City Mall has been sold to South African Real Estate Investment Trust (REIT) Hyprop Investments Limited (Hyprop) and Attacq Limited. In a press release announced by Hyprop it acquired a 75% interest in Ikeja City Mall whilst Attacq acquired the remaining 25%.
Actis and local partner Paragon Holdings sourced the development site in 2008. RMB Westport, initially appointed by Actis as the development manager in 2008, invested as an equity partner in 2010. Actis has now sold its 60% majority stake, while Paragon Holdings and RMB Westport have both sold their 20% stakes in the mall.
Hyprop, Africa’s leading specialist shopping centre Real Estate Investment Trust (REIT), operates an internally managed portfolio of shopping centres in major metropolitan areas across South Africa. Ikeja City Mall (ICM) will be its first investment in Nigeria.
Ikeja City Mall (ICM) is currently the largest mall in Lagos and is located in the capital city of Lagos, Ikeja-Alausa where you have the offices of the Lagos State Government and its Parastatals. ICM Comprising 23,000m2 of A-grade retail space in Ikeja.
The total 23,000m2 area of ICM guarantees ample parking space for shoppers. The Shopping Centre comprises of a 100 stores with a desirable mix of retailers trading renowned quality brands. Shoppers are not only spoilt for choice within any shopping category but will enjoy a diverse, comfortable, clean, safe and convenient experience including shopping, entertainment and leisure all under one roof.
See full press release below;
London, South Africa (17 November 2015): Actis, a leading emerging markets investor, RMB Westport, a notable sub-Saharan Africa real estate investment management and development group and Paragon Holdings, a leading Nigerian investor group today confirm the sale of Ikeja City Mall to South African Real Estate Investment Trust (REIT), Hyprop Investments Limited (Hyprop) and Attacq Limited (Attacq), a JSE-listed real estate capital growth fund.
Hyprop acquired a 75% interest in Ikeja City Mall and Attacq has acquired the remaining 25%. Actis and local partner Paragon Holdings sourced the development site in 2008. RMB Westport, initially appointed by Actis as the development manager in 2008, invested as an equity partner in 2010. Actis has now sold its 60% majority stake, while Paragon Holdings and RMB Westport have both sold their 20% stakes in the mall.
Ikeja City Mall, Lagos’ largest mall, is a world-class retail and leisure development in Ikeja, a densely populated suburb of Lagos, with a population of 4.5 million people. As the largest mall in Lagos it comprises over 22,000m² and has a tenant mix anchored by Shoprite, offering South African brands including Mr Price, Spur, MTN and Markham and international brands including Nike, Lacoste, Tommy Hilfiger, TM Lewin, Mango, i-Store, KFC, and Max Fashion.
Actis and RMB Westport managed the development process from concept to completion: investing the initial equity; raising development finance; managing the construction; securing the tenants; operating the mall and bringing it to market at the right time, working in partnership with Paragon Holdings. The mall opened its doors in December 2011 fully let, and today attracts up to 800,000 shoppers per month.
Ikeja City Mall is Hyprop’s first investment in Nigeria. This acquisition is an attractive investment and complements Hyprop’s strategy of investing in high quality, income-producing shopping centres, in key cities across sub-Saharan Africa. Pieter Prinsloo, CEO of Hyprop, commented: “Hyprop is well‐placed to capitalise on opportunities across sub-Saharan Africa, due to its partnership with the Atterbury Group and Attacq, whose combined expertise facilitates exploiting opportunities as they arise.”
David Morley, Head of Real Estate at Actis, commented: “This sale reflects the strong retail opportunity in West Africa and the interest of quality institutional investors in sub-Saharan real estate assets. This is the sixth exit from the first Actis real estate fund. It is a continuation of Actis’ proven cash to cash track record of delivering A-grade real estate assets in sub-Saharan Africa, positioned to be attractive to both international and local institutional buyers. Over two funds, Actis has committed to 17 institutional quality developments in seven countries totalling a gross asset value of $1.3bn.”
“RMB Westport has earmarked a number of sub-Saharan Africa territories as key jurisdictions in which to develop retail and commercial property. Private consumption is increasingly emerging as one of the key drivers of growth in African economies, and foreign direct investment remains strong. RMB Westport’s current portfolio of 11 investment-grade developments with a gross asset value of $1bn is perfectly placed to unlock investor value. Reliable project delivery, which has been central to Ikeja City Mall’s success, is our core focus,” says Michael O’Malley, Director of RMB Westport who has spent the past 20 years working on retail and mixed-use projects in 12 African countries.
Morné Wilken, CEO of Attacq, said: “Our strategic investment in Ikeja City Mall forms part of Attacq’s larger African investment strategy and was executed with the assistance of the experienced AttAfrica team. It is our first investment in Nigeria, an African market with fantastic growth prospects. It adds to our investment in the growing portfolio of dominant, quality retail malls in sub-Saharan Africa.”
Frank Obi, Group Executive Director of Paragon Holdings commented “We are pleased to have been a part of this landmark project from its inception to the present. It is a testament to the foresight and resolve of our leadership, and to the position of Lagos State and its government as leading hosts to serious investors in Africa. We look forward to working with quality foreign investors to develop outstanding real estate projects in the years ahead.”