Hyprop, Attacq acquires Ikeja City Mall

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 has been confirmed.

Hyprop acquired a 75% interest in Ikeja City Mall and Attacq has acquired the remaining 25%. Actis, a leading emerging markets investor and local partner Paragon Holdings sourced the development site in 2008. RMB Westport, a notable sub-Saharan Africa real estate investment management, 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