Following a 33-year stay, ExxonMobil has exited Mobil House, Victoria Island and moved into Karaa Place, in Osbourne Phase 2, Ikoyi. This move is in line with the company’s intent to streamline its business operations in Nigeria following the imminent sale of its land and shallow-water assets in the country to Seplat Energy. Here are the details of ExxonMobil’s new office, Karaa Place:

1. Karaa Place is a Grade B office development with a gross Leasable Area of 7,000m² located in Acacia Drive, Osbourne 2, Lagos.
2. The development, completed in 2021, was developed as a joint venture between Crowie Projects and a Private Individual with a project team that includes:
   – El-Alan Construction Company as the Main Contractor
   – Arctive Consultants Limited  as the Architect
   – Trevi Foundations Limited as the Piling Contractor
   – EMMS Uf-A Consultants as the Structural Engineer
   – Vacc Technical Limited as the MEP Engineer
   – Profica as the Project Manager
3. The six-floor development has a floor plate size of 999m² and, as of March 2023, was up for rent at an annual asking rate of approximately $500/m².
4. Karaa Place is one of the recent office developments in the broader Ikoyi area following the increased commercialization with office developments owing to encroaching demand from Victoria Island. Although Acacia Drive is a more reserved area, the building contributes to Ikoyi’s office stock of over 160,000m² comprising Heritage Place, Mulliner Tower, Centre Point(Formerly Famfa Oil Tower), Ulesh Ikoyi, and The Pantheon.

 

 

ExxonMobil’s Other Assets

Following their exit from Mobil House, ExxonMobil’s plans for their other six offices in Nigeria located in Abuja, Rivers State, and Uyo State have not been disclosed. In Lagos State, 11PLC – the lubricants subsidiary of ExxonMobil – currently occupies a development located in Apapa, Lagos. 

Prevailing Multinational Exits to Put Additional Pressure on the Lagos Office Market

ExxonMobil’s move into Karaa Place follows multiple announcements by various multinationals who also seek to limit their exposure to Nigeria’s harsh economic climate. Notably, Addax Petroleum ceased operations in Nigeria and exited its 9,500m² office development in 2022. Furthermore, Microsoft recently disclosed its intent to close the Lagos-based African Development Centre which occupies some of the 5,000m² space leased in Kings Tower, Lagos. In addition, several pharmaceuticals and FMCG-producing companies like P&G, GSK, and Kimberly-Clark have also announced their exits from Nigeria. Consequently, these high-profile exits are expected to increase pressure on the Lagos office market as vacancy rates rise amidst a looming supply glut in the prime segment of the market.

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