Stanbic IBTC Bank Plc, and Standard Bank of South Africa have concluded a US$48.6 million debt facility for Gruppo Investments Nigeria Limited to fund the development of Ikeja Mall in Ikeja, Lagos.
The deal was officially unveiled at a signing ceremony in Lagos on Monday. Actis is the majority equity stakeholder in Gruppo Investments Nigeria Limited, whose other equity stakeholders include Paragon Holdings and Rand Merchant Bank Investments & Advisory.
Actis is a leading private equity investor in emerging markets with a growing portfolio of investments in Asia, Africa and Latin America and it currently has US$4.8bn funds under management. The Actis Real Estate team is a leading investor in Africa, whose track record includes the Palms Shopping Mall, Lagos, Nigeria and Accra Mall, Ghana.
The Ikeja Mall story would not be complete without the strategic alliance between Actis and Paragon Mall SPV, headed by Prince Eludoyin. Prince Eludoyin is also the chairman of Paragon Holdings Plc, a Nigerian based conglomerate whose business spans oil & gas, construction, insurance, real estate and hospitality.
Speaking on the facility, Chief Executive Officer (CEO),Stanbic IBTC Plc, Nigeria, Mr. Chris Newson said, â€œ This is a landmark transaction for the Property Finance division of Stanbic IBTC and indeed for Standard Bank who is keen to expand its real estate business across Nigeria.
â€œWe are committed to supporting infrastructure development of all types including Real estate and accordingly are delighted to be a part of this landmark deal. We are proud to be instrumental to a development that would significantly boost the retail offering in Ikeja and in so doing, help create job opportunities and an outlet for the growth of local enterprise within the country.â€
Fergus Mackintosh, Director Property Finance International & Africa, Standard Bank of South Africa comments said, â€œThe closing of the Ikeja Mall financing is the culmination of a significant team effort from the Standard Bank group, involving staff in various countries and divisions. It represents one of the first structured transactions of its type in Nigeria and is a measure of the commitment of the group to the real estate sector in this region.â€
In his comment, Chukuka Chukuma, Head Debt Solutions, Stanbic IBTC said ,â€This transaction has been a long time coming and it marks a new beginning in our quest to be a leader in the Property Finance sector in Nigeria. Our long term commitment towards this important and growing sector in Nigeria is further underscored by the fact that we now a fully fledged property finance team in Lagos.â€