South Africa firms buy Ikeja City Mall

Ikeja City Mall, Lagos 1By OKORO CHINEDU

LAGOS, (CAJ News) – THE plush Ikeja City Mall, Lagos’ largest shopping centre, has been sold to some South African companies for an undisclosed amount.

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.

Hyprop acquired a 75 percent interest in Ikeja City Mall and Attacq has acquired the remaining 25 percent.

David Morley, Head of Real Estate at Actis, said this sale reflected 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,” said Morley.

Over two funds, Actis has committed to 17 institutional quality developments in seven countries totalling a gross asset value of $1,3 billion.

Morné Wilken, Chief Executive Officer of Attacq, said their strategic investment in Ikeja City Mall formed part of a larger African investment strategy.

“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,” Wilken. 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.

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.

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