Wednesday, 18 November 2015

Ikeja City Mall acquired by South African real estate firm

Retail-focused property group Hyprop Investments and capital growth fund Attacq have bought Ikeja City Mall, the largest shopping centre in Lagos.

Hyprop has been looking for a sizeable investment in Nigeria, having found fewer acquisition opportunities available in SA in the past year.
Ikeja City Mall is Hyprop’s first investment in Nigeria, with the fund spending roughly $68m for its 75% interest in the mall. Attacq is paying $23m for its 25% stake.

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.

Pieter Prinsloo, CEO of Hyprop, commented: “Hyprop is well‐placed to capitalise on opportunities across sub-Saharan Africa, due its partnership with the Atterbury Group and Attacq, whose combined expertise facilitates exploiting opportunities as they arise.”

“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”, said David Morley, head of Real Estate at Actis.

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.”

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