Hyprop & Attacq Acquire 100% Interest in Nigeria’s Ikeja City Mall

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 have confirmed the sale of Ikeja City Mall to South African Real Estate Investment Trust (REIT), Hyprop Investments Limited (Hyprop) and Attacq Limited (Attacq), a JSE-listed real estate capital growth fund.

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

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.

Ikeja City Mall, Lagos’ largest 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.

Actis and RMB Westport managed the development process from concept to completion: investing the initial equity; raising development finance; managing the construction; securing the tenants; operating the mall and bringing it to market at the right time, working in partnership with Paragon Holdings.

The mall opened its doors in December 2011 fully let, and today attracts up to 800,000 shoppers per month.

Ikeja City Mall is Hyprop’s first investment in Nigeria. This acquisition is an attractive investment and complements Hyprop's strategy of investing in high quality, income-producing shopping centres, in key cities across sub-Saharan Africa.

Pieter Prinsloo, CEO of Hyprop, commented: “Hyprop is well‐placed to capitalise on opportunities across sub-Saharan Africa, due its partnership with the Atterbury Group and Attacq, whose combined expertise facilitates exploiting opportunities as they arise.”

David Morley, head of Real Estate at Actis, commented: “This sale reflects 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. Over two funds, Actis has committed to 17 institutional quality developments in seven countries totalling a gross asset value of $1.3bn.”

“RMB Westport has earmarked a number of sub-Saharan Africa territories as key jurisdictions in which to develop retail and commercial property. Private consumption is increasingly emerging as one of the key drivers of growth in African economies, and foreign direct investment remains strong. RMB Westport’s current portfolio of 11 investment-grade developments with a gross asset value of $1bn is perfectly placed to unlock investor value. Reliable project delivery, which has been central to Ikeja City Mall’s success, is our core focus,” says Michael O'Malley, Director of RMB Westport who has spent the past 20 years working on retail and mixed-use projects in 12 African countries.

Morné Wilken, CEO of Attacq, said: “Our strategic investment in Ikeja City Mall forms part of Attacq’s larger African investment strategy and was executed with the assistance of the experienced AttAfrica team. 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.”

Frank Obi, group executive director of Paragon Holdings commented “We are pleased to have been a part of this landmark project from its inception to the present. It is a testament to the foresight and resolve of our leadership, and to the position of Lagos State and its government as leading hosts to serious investors in Africa. We look forward to working with quality foreign investors to develop outstanding real estate projects in the years ahead.”

Actis invests exclusively in the emerging markets with a growing portfolio of investments in Asia, Africa and Latin America; it currently has US$7.6 billion funds under management.  Applying developed market disciplines to emerging markets, c. 100 investment professionals in ten countries identify investment opportunities in private equity, energy and real estate.

Africa lies at the core of our firm’s investment strategy. Over 40% of Actis’ investments are located in Africa, with over $1.9 billion invested across 18 countries on the Continent.

Actis is the most experienced private equity real estate investor in sub-Saharan Africa, with a track record that pre-dates its first closed-end fund formed in 2006. Since then the firm has led investment in 17 developments totalling $1.3bn gross asset value in eight cities across seven countries, and sold six of them. Its highly experienced team has an average of 20 years in real estate.

Also, Africa’s leading specialist shopping centre REIT, operates an internally managed portfolio of shopping centres in major metropolitan areas across South Africa.

Hyprop also has a growing presence in sub-Saharan Africa, through a joint venture with Attacq Limited (Attacq) and the Atterbury Group.

All investments in sub-Saharan Africa (excluding South Africa) are held through Hyprop Investments Mauritius, a wholly owned subsidiary of Hyprop. The sub-Saharan African portfolio includes shopping centres Accra Mall, Westhills Mall and the recently opened Achimota Mall (all in Accra, Ghana), and Manda Hill Centre in Lusaka, Zambia. Construction is underway at Kumasi City Mall, Kumasi, Ghana (completion date 2017).

Similarly, Attacq is a leading South African capital growth property company listed on the JSE. Attacq’s vision is to deliver exceptional sustainable capital growth through creative local and international real estate developments and investments.

Attacq pursues this vision through its strategic drivers of Invest, Develop and Grow. Attacq’s business has two key focus areas: Investments and Developments. Investments comprise completed buildings held directly and indirectly.

Developments comprise land, greenfields development of land or brownfields development by refurbishment of existing buildings. Investments provide stable income and balance sheet strength to responsibly secure and fund high-growth opportunities within Developments.

RMB Westport is a real estate investment management and development firm, focused on creating value-added real estate developments in high-yield geographies in sub-Saharan Africa. RMB Westport is a joint venture between Rand Merchant Bank (RMB), a division of FirstRand Bank Ltd and the Westport Property Group.

RMB Westport’s real estate and property development experts are renowned for their innovative approach to developing sustainable solutions.

RMB Westport develops properties that maximise investor value by delivering the right projects, in the right location, on time and on budget. Please visit www.rmbwestport.com for more information.

Paragon Holdings Limited (PHL) is a diversified Pan African conglomerate with interests in strategic sectors of the economy in Nigeria and across Africa.

The overriding objective of the Group is to create thriving businesses manned by competent human resources to deliver the value proposition for each business initiative.