Skip to main content

Investors stake $500m for retail malls devt in Nigeria’s major cities

It is a further boost for Nigeria’s retail market as foreign investors are in the country to feast on the retail boom with $500 million expected to finance the development of six retail malls in five major cities in the next 30 months.


A roll call of these investors include RMB Westport, a joint venture between Rand Merchant Bank (RMB) and Westport Property Group—a  highly skilled real estate investment management company—which will be funding about 51 percent of the $74.3 million Osapa Convenience Centre and 50.5 percent of 30,124 square metre Royal Gardens Mall,  expected to gulp about $165.2 million when delivered in Q4 2017.
Another company is Resilient Africa, a South African partnership between Resilient Properties, Shoprite and Standard Bank, will be delivering four of its choice malls in Delta,  Benin city, Owerri and Asaba by Q4 2015 at a total cost of $200 million.
Likewise, Noavre equity partners, another South African real estate firm, has already commenced the construction of its  22,000 square metre Lekki Mall expected to be delivered by the end of 2015 at the cost of $ 60 million.
A formidable partnership between Duval Properties and Actis is poised to berth a new shopping experience in Abuja by 2015 when both firms are expected to deliver the 27,000 square metre Jabi Lake Mall. Actis, a global pan-emerging market private equity firm is expected to contribute a fair share of  the $100 million that the mall will cost.
Nigeria’s retail space has spiked new interests in recent time with South African owned Shoprite, Park ‘n’ Shop, Spar, Game, Mr Price, Wrangler, Etam, Lacoste and Cold Stone showing huge commitment to further spread their footprints having occupied nearly all of the country’s retail space estimated to be a little above 100,000 square metres.
“There has been a strong interest from notable international brands (not just the regular South Africa ones) who are eager to come to the Nigeria market in recent time and this enhances the take-off of these malls when delivered”, Chu’di Ejekam, a director at Actis, told BusinessDay.
Analysts predict that with the coming of Inglot, Gap and Tommy Hilfiger set to join the country’s retail sector, opportunities are evolving for more investment in retail space development are investors are urged to take up the challenge of building more malls.
Pan-African Standard Bank’s projection that the number of households with annual income greater than $3,000 at market exchange rates will increase to 100 million by 2015 gives further hope on the growth of this sector in the country.
In a study by Global Retail Development Index, a handful of African nations were listed among the top 30 countries for retail investment and Africa has been projected for increasing growth in recent and upcoming years. A 2011 World Bank report states that “Africa could be on the brink of an economic take-off, much like China was 30 years ago and India 20 years ago.”
ODINAKA MBONU
Labels:

Comments

Post a Comment

Popular posts from this blog

SURVEY OF PRICES OF PROPERTIES ON THE ISLAND

Sales price Rental per annum Lekki Phase 1  3 Bedroom flat N45m – N50m N2.5m – N3m 4 Bedroom wing of duplex  N70m – N80m   N3m – N4m Agungi 4 Bedroom detached house N45m – N50m N2.5m 3 Bedroom flat N40m      N1.5m – N1.8m Chevy view 4 Bedroom terrace house N42m N2.5m 3 Bedroom flats  N35m        N1.6m Crown Estate 4 Bedroom detached house  N30m – N40m  N1.5m – N2m Thomas Estate, Ajah 3 Bedroom flat N25m   N750k – N800k Abraham Adesanya 3 Bedroom bungalow  N12m – N14m N700k – N1m 2 Bedroom bungalow N11m – N12m  ...
2 comments
Read more

Quick fixes for quick profits in real estate

It has been said several times that ‘ideas rule the world’ and this holds true in real estate investing as well. We want to examine a time-tested idea that guarantees quick turnaround time and good returns on investment in most real estate markets. We’ll be examining guidelines for making a good return in rehabilitating and selling properties. First, you need to find a property that is in need of repairs or renovation but is located in a good area. 
Post a Comment
Read more

Nigeria Central Bank’s decision on CRR to have ‘shock effect’ on money market – Rewane

The MPC increased the already controversial Cash Reserve Ratio on public sector deposits from 50 to 75 per cent The decision by Nigeria’s Monetary Policy Committee, MPC, to increase the already controversial Cash Reserve Ratio, CRR, on public sector deposits from 50 to 75 per cent would in the short term, have a shocking effect on the nation’s money markets, Bismarck Rewane, a finance analyst and Managing Director, Financial Derivatives Company, has said. “The impact of this decision on money markets will be a shock effect in the short run and a re-turn to equilibrium rates within six weeks”, Mr Rewane said in a report analysing the MPC’s decision. He said the first time the MPC increased the CRR (the percentage of funds banks have to keep with the Central Bank) on public sector deposits in August 2013, an estimate of N1trn or 6.84 per cent of Money Supply (M2) was debited. “At that time, the impact was a spike in interbank rates of approximately 800 basis points (bps...
Post a Comment
Read more