Ikeja City Mall performing well amidst its intended sales transaction

Deborah Jesusegun . 1 year ago

Ikeja City Mall performing well amidst its intended sales transaction

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Ikeja City mall produced pleasing results for the first half of the year, increasing its operating profit from $9.5 million in 2021 to $10.5 million in 2022. This is according to the recently released consolidated financial statement for the year ended June 2022 by Hyprop Investments.  According to Hyprop Investments, their sub-Saharan African (SSA) assets…


Ikeja City mall produced pleasing results for the first half of the year, increasing its operating profit from $9.5 million in 2021 to $10.5 million in 2022. This is according to the recently released consolidated financial statement for the year ended June 2022 by Hyprop Investments

According to Hyprop Investments, their sub-Saharan African (SSA) assets recorded higher ‘earnings after tax’, which was driven by increased revenue and lower bad debts. 

Hyprop Investments is a retail focused Real Estate Investment Trust (REITs), owning major retail developments in South Africa and Eastern Europe, and a few in Sub Saharan Africa.

The company as a whole strengthened its balance sheet by increasing its gross assets by 39% and a corresponding reduction in its loan-to-value ratio from 45.8% in June 2021 to 36.4% in June 2022. During the reporting period, Hyprop also recorded an increase in key trading metrics for all its portfolio, with most returning to or exceeding 2019 levels. 

As mentioned in the report: 

“Our repositioning strategy in South Africa (SA), in line with our Golden Thread principles, the dominance of our SA portfolio and our focus on the operational performance of the sub-Saharan Africa (excluding South Africa) (“SSA”) portfolio, helped both our SA and SSA portfolios to perform well and recover quickly as Covid-19 restrictions were lifted.”

Hyprop’s Intended Sale of the Ikeja City Mall remains

Ikeja City Mall (ICM) is one of Hyprop’s properties located in Lagos, Nigeria. Despite the pandemic, the popular mall has seen an increase in its profit in the first half of the year. This is due to increased revenue and lower bad-debt. The mall’s consistent full occupancy rate is one of the drivers of its increased revenue.

Recall that Hyprop Investments had decided to sell their stake in the mall in line with its strategy to focus on its South African and Eastern European businesses. However, the sale to Actis via the Actis Africa Sustainable Real Estate Income Fund and Actis West Africa REIF LP (the prospective buyer) has been delayed due to the US dollar liquidity shortages. ICM is now carried at the agreed sale value of US$121 million, after adjusting for the 6% escalation in the price in terms of the sale and purchase agreement. 

Hyprop Strategy to exit its Sub-Saharan Market still persists

In September 2018, Hyprop made it clear that they were exploring the reduction of their exposure to sub-Saharan Africa through the disposal of their portfolio of property assets worth over $630m at the time. This decision followed the unexciting performance of the sub-Saharan Africa assets as a result of foreign exchange losses and unfavourable market conditions. In December 2018, the group reported an impairment in the SSA portfolio of R1.07 billion (c. $70m). In 2020, Hyprop announced the sale of their stake in ICM, less than 5 years after they bought it. 

Ikeja city mall remains one of Lagosians’ favourite malls and its performance is likely to continue in the same profitable vein. We believe the opening of Nike’s first-of-its-kind flagship store in the mall, the upgrade of the restroom facilities, and full occupancy rates are added advantages that would increase the mall’s performance. 

We love your feedback! Let us know what you think about Hyprop’s investment strategy and Ikeja City mall’s performance by sending an email to [email protected].