Asset Manager STANLIB is partnering with Chestnut Uganda to finance the development of the Arena Mall, a new retail and shopping center located in Kampala’s Nsambya suburb which is scheduled to open on November 2018. The development is expected to cost $50 million.
Nnema Byrd, an Investment Officer with STANLIB, told East African Business Week that the two partners have locked in 50% of the required financing in the form of a loan from Standard Bank, with the balance being provided by STANLIB and Charles Odere, Chestnut Uganda’s owner.
“We have secured the loan from the financial Institution which is a long term loan of about five years,” she was quoted as saying. “Part of the loan will be in form of Equity from STANLIB private equity fund alongside Odere’s contribution which is in form of land and additional money. This will guarantee him to own about 20% of the total share in the $50 million Arena shopping mall project.”
The mall, which will be STANLIB’s first property development in Uganda, will be 14,000 square meters in size and feature supermarkets, retail outlets, fashion development stores and a cinema.