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Actis, RMB and Paragon exit Ikeja City Mall

Ikeja City Mall has been sold by its private equity owners to a duo of South African property investors in an undisclosed deal. Actis, RMB Westport and Paragon Holdings exited their combined 100% stake in Lagos’s largest mall to South African Real Estate Investment Trust, Hyprop Investments and Attacq, a JSE-listed real estate capital growth fund.

Actis originally partnered with Nigerian investor, Paragon Holdings, sourcing the development site for the mall in 2008. RMB Westport, who were initially appointed by Actis as the development manager in 2008, invested equity in the mall in 2010. Last week’s sees Actis exit its 60% majority stake, with Paragon and RMB Westport both selling their 20% stakes for a full exit from the investment.

The mall opened its doors in December 2011, and today, attracts up to 800,000 shoppers per month. With over 22,000 square metres of space, the retail and leisure development has a mix of tenants 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.

The exit is Actis’s sixth from its first real estate fund. Over two funds, Actis has committed to 17 developments in 7 countries with total gross asset value of $1.3 billion. Commenting on the transaction, David Morley, the emerging markets private equity firm’s head of real estate said “This sale reflects the strong retail opportunity in West Africa and the interest of quality institutional investors in sub-Saharan real estate assets.”

The acquisition marks Hyprop’s first investment in Nigeria and follows the REIT’s strategy of investing in high quality, income-producing shopping centres in key cities across sub-Saharan Africa. The deal sees Hyprop acquiring 75% of the Ikeja City Mall, with Attacq acquiring the balance of 25%.

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