On Monday, 11th of September, 2023 a Nigerian Institutional Investor listed their assets for sale in a local Nigerian publication. The Grade A developments include three retail malls and one mixed-use commercial property comprising office and retail spaces.

 

Asset Restructuring and Downsizing Expected Amid Forex Liberalisation

Following the liberalisation of Nigeria’s foreign exchange rate, we expect to see real estate demand in prime office and retail assets change. We anticipate that tenants will start to downsize or reduce space requirements to manage the cost increase and maintain profitability.

As the search for liquidity among large scale institutional assets owners continues, purchase interest has been low.

 

Below we highlight the key details of the retail developments on sale

Lekki Mall

 

Developer: Novare

Size: 21,000 m2

Location: Off Lekki-Ajah Expressway, Sangotedo, Lagos

Completion Date: August 2016

Occupancy Rate: 92% (as of June, 2023)

Annual footfall: 5.7 million (as of December, 2022)

Anchor Tenants: Shoprite, Lifemate, JED Lifestyle, Miniso, Bedmate, Genesis Deluxe Cinema, Krispy Kreme

 

Apo Mall

 

Developer: Novare

JV Developer: Grand Towers

Size: 8,000 m2

Location: Cadastral Zone B14, Dutse, Abuja

Completion Date: January 2012

Occupancy Rate: 97% (as of June, 2023)

Annual footfall: 1.7 million (as of December, 2022)

Anchor Tenants: Shoprite, JED Lifestyle & Megastores, PEP, BAFFI Furniture, Krispy Kreme, Miniso, Blue Fox Lounge

 

Gateway Mall

 

Developer: Novare

Size: 14,000 m2

Location: Kilometre 8 Along Airport Road – Abuccima Land, Abuja

Completion Date: January 2017

Occupancy Rate: 94% (as of June, 2023)

Annual footfall: 3.6 million (as of December, 2022)

Anchor Tenants: Shoprite, BAFFI Furniture, Funworld, Genesis Deluxe Cinema, EHA Clinics, Scanfrost

 

Novare Central

 

Developer: Novare

Size: 11,000 m2

Location: Wuse Zone 5, Off Michael Opara Way, Abuja 

Completion Date: January 2018

Retail Occupancy Rate: 95% (as of June, 2023)

Commercial Occupancy Rate: 88% (as of June, 2023)

Anchor Tenants: Shoprite, The Vue, Esteem Furniture, Active Leisure

 

Pipeline Data Shows a Preference Shift to Hypermarkets and Plazas

 

Estate Intel’s 2023 Lagos Real Estate Pipeline Report highlights that there has been a recent shift in preference to locally-owned hypermarkets and plazas due to a relatively shorter delivery window and flexibility that helps lessen the impact of economic headwinds in the country. As such, there has been marked increase in the demand and supply of hypermarkets and plazas compared to Grade A malls.

 

Estate Intel loves your feedback! Let the Insights team know what you think about Nigeria’s retail market, by emailing [email protected].

 

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