South Africa Firms Buy Ikeja City Mall
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
confirm the sale.
The mall has been sold to a South African Real Estate Investment Trust, Hyprop Investments Limited (Hyprop) and Attacq Limited (Attacq), a Johannesburg Stock Echange-listed real estate capital growth fund.
Ikeja City 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.
In a statement released on Tuesday, Actis said it sold its 60 percent stake in Ikeja City Mall to two South African firms, Hyprop Investments and Attacq Limited. Other minority shareholders in Ikeja City Mall – Paragon Holdings (20 percent) and RMB Westport (20 percent) – also sold their stakes to the South African firms.
With the latest divestitures, Hyprop Investments now owns 75 percent of Ikeja City Mall, while Attacq Limited owns the remaining 25 percent.
Actis signed a partnership to build the Ikeja City Mall, the largest shopping centre in Lagos, in 2010 with Paragon Holdings, the Nigerian investment group, and RMB Westport, the African-focused real estate firm controlled by South Africa’s Rand Merchant Bank and US-based Westport Group. The mall was opened in December 2011 and currently attracts up to 800,000 visitors per month.
The sale of Ikeja City Mall will be the second divestiture for Actis this year after it sold Mouka Limited, the mattress maker, to Abraaj Group, an emerging markets private equity firm, in July.
Actis, which has over $7 billion in funds under management, has invested more than $300 million in Nigeria, according to Natali Kolbe, a partner at Actis.
SOURCE – FINANCIAL NIGERIA AND CAJ NEWS