Nigeria’s Ikeja City Mall Sold to Hyprop and Attacq – Real Estate Market Data and Research for Nigeria and other African Countries | estate intel

Nigeria’s Ikeja City Mall Sold to Hyprop and Attacq

Ikeja City Mall, Formerly Owned by Actis, RMB Westport and Paragon Holdings. Image Source: RMB Westport

Ikeja City Mall, Formerly Owned by Actis, RMB Westport and Paragon Holdings. Image Source: RMB Westport

Investors in Ikeja City Mall, Actis, RMB Westport and Paragon Holdings announced the sale of their 22,000m² retail asset to South African Real Estate Investment Trust (REIT), Hyprop and Attacq, a JSE-listed real estate capital growth fund. The sale follows Actis’ strategy, which is hinged on de-risking investments and delivering prime income producing Grade A property assets with bond like characteristics for sale to local and international institutional investors.

Hyprop acquired a 75% interest in the mall while Attacq acquired the remaining 25% in what stands as the first Nigerian investment for both parties. 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. Actis has now sold its 60% majority stake, while Paragon Holdings and RMB Westport have both sold their 20% stakes in the mall.

David Morley, Head of Real Estate at Actis, noted that the 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, others include the sale of The Palms (Lagos) to Persianas and the sale of Accra Mall (Accra) to Sanlam. Now with over two funds, Actis has committed to 17 institutional quality developments in seven countries totalling a gross asset value of $1.3bn.

Ikeja City Mall is currently Lagos’ largest mall located 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 of retail space with a tenant mix anchored by Shoprite, offering South African brands including Mr Price, Spur, MTN and Markham as well as international brands including Nike, Lacoste, Tommy Hilfiger, TM Lewin, Mango, i-Store, KFC, and Max Fashion. The mall opened its doors in December 2011 fully let, and today attracts up to 800,000 shoppers per month.

Ikeja City Mall. Image Source. Looks Like Lagos

Ikeja City Mall. Image Source. Looks Like Lagos

Pieter Prinsloo, CEO of Hyprop explained that their partnership with the Atterbury Group and Attacq will allow them capitalise on opportunities across sub-Saharan Africa as they arise. Morné Wilken, CEO of Attacq mirrored these comments adding that the acquisition forms part of their larger African investment strategy.

This acquisition also reinforces the interest and confidence in the Sub Saharan Africa real estate growth story from large institutional investors across board. Earlier this week South Africa’s largest REIT, Growthpoint teamed up with Investec Asset Management and IFC to establish and grow a significant diversified pan-African real estate investment business. This real estate portfolio will comprise approximately 80% income-producing real estate assets while 20% of its investment will be earmarked for development to create new assets for its portfolio.



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