Business
South African firm buys Ikeja City Mall, three Ghanaian plazas for $200m
Lango, a South African real estate firm, has agreed to acquire assets owned by Hyprop Investments Limited and Attacq Limited in Nigeria and Ghana.
In a joint statement dated August 12, Lango agreed to acquire Accra Mall, Kumasi City Mall, West Hills Mall (all in Ghana), and Ikeja City Mall (ICM) in Nigeria, “at $200 million”.
According to the statement, the assets were acquired via an issue of Lango shares to the companies, along with part debt finance, with Rand Merchant Bank (RMB) acting as the lead arranger.
Hyprop and Attacq agreed to sell ICM nine years after acquiring the mall in 2015.
Following the completion of the acquisition in 2015, Hyprop held a 75 percent interest in ICM while Attacq acquired the remaining 25 percent.
Speaking on the latest acquisition, Thomas Reilly, chief executive officer (CEO) of Lango, said the transaction is a significant milestone for Lango and not “only fits squarely into our growth strategy, but is also highly accretive”.
“The scale achieved by Lango undoubtedly positions it as a leading Sub-Saharan African firm in the industry. Lango will now have c.US$875 million of assets under management across four countries, with arguably some of the best-performing landmark commercial properties across both the retail and office sectors in select growth cities,” Reilly said.
“These assets are well-positioned to allow Lango to extract synergies and further enhance growth with a high degree of resilience to differing market cycles.
“We are excited to once again take advantage of a highly attractive entry-point in the cycle, adding quality yielding assets in select cities to our asset base at competitive prices, which we believe have the potential to offer strong growth prospects. The business continues to enjoy significant momentum, and we expect this to aid in the delivery of sustainable long-term investor returns.”
On his part, Morne Wilken, CEO of Hyprop, said the firm’s management had previously committed itself to achieving several strategic initiatives, with the exit of Sub-Saharan Africa being one of the last remaining initiatives to be completed.
“The successful implementation of this transaction will achieve this initiative, and we look forward to working with Lango to completion,” he said.
Also, Jackie van Niekerk, Attacq CEO, said “our Rest of Africa (ex-South Africa) investment has become a small component of Attacq’s real estate investments and has been earmarked as part of an exit strategy by way of an orderly disposal”.
“We are delighted to reach a point where a transaction with a credible counterpart in Lango has been agreed,” Niekerk said.
$200 MILLION PAYMENT RAISES QUESTIONS
Meanwhile, the acquisition price has raised questions. In an X post on Sunday, Bright Simons, vice-president of IMANI, a Ghanaian policy and education think-tank, claimed that the four assets were sold lower than the price announced.
Simons said the four malls were at a “considerable loss for the young firm”.
“When I saw the PR-heavy press coverage, my antenna jacked up since I have been investigating the World Bank’s IFC’s mall investments as part of a long-term project that seeks to understand how and if investments by the World Bank truly benefit people on the ground,” he said.
“First off (no prizes for guessing), the PR that the three Ghanaian malls were sold for $200 million was false…
“And, yes, the World Bank’s IFC is somehow involved in this affair. The company (Lango) that bought the 4 malls began life as an Investec-Growthpoint entity that was funded by the IFC in May 2018 with a $40 million contingent-equity facility.
“Attacq and Hyprop’s stakes in the four malls actually all sold for a total of $60 million. Their stakes in the three Ghanaian malls fetched ~$27 million.
“Consider that in 2017, Sanlam valued the Accra Mall alone (the smallest of the 3 malls) at $129 million, up 100% in value from the $65 million it assessed in 2012 when, together with Attacq, it bought it from Actis.”
According to Simons, Attacq and Hyprop were two mall sellers who were in such a hurry to “leave the Sub-Saharan Africa malls business that they even took their payment in Lango shares, as there was no cash at hand”.
“The buyer itself, Lango, had to restructure its debts in 2021, kind courtesy of a Stanbic facility. Imagine how it licked its lips when it picked up the malls for cheap last week without having to put down any cash,” he added.
“The sellers disclosed net losses on the four malls totaling ~$37 million for FY 2023. It would seem like the original mall financiers – the likes of Actis – got off lightly, since Actis reported a 7.2% exit yield on its Ghana mall holdings when exiting in 2012. Curious though that they declined to provide the actual numbers.
Simon said by the time Attacq and Hyprop sold the malls last week, the four properties carried a value of “~$179 million, 44.4% less than the total original construction cost of ~$322 million”.
He said selling all their stakes in the four malls for “$60 million, net of debt, and in shares rather than cash”, implies a steep and dramatic erosion in nominal value over time.
Simons added that the two sellers (Attacq and Hyprop) said they “won’t “hold the shares received in payment for long”.
Business
APPLY: FIRS begins recruitment of senior managers, directors
The Federal Inland Revenue Service (FIRS) has begun its recruitment exercise for experienced professionals to fill specialised positions in the organisation.
Announcing various vacant roles on Monday, the FIRS said the recruitment exercise is part of its consolidation strategies.
The advertised positions include assistant manager and deputy manager roles in tax (investigation), PRS (research), public relations, and ICT (cybersecurity and AI management).
Other available roles are assistant manager and deputy manager in PRS (risk management), assistant manager and deputy manager in legal, and senior manager and assistant director roles in tax (audit).
“Applicants must have qualifications and relevant professional certificates as specified in the positions they are applying for and must also fulfill the following requirements,” the agency said.
“Applicant must possess Bachelor’s degree/HND with at least second class lower/lower credit.
“Applicant must have completed NYSC not later than 31st December 2017.
“Applicant for the position of assistant manager and deputy manager must not be more than 40 years of age while senior manager and assistant director must not be more than 45 as at 31st December 2024.”
The revenue agency said candidates must possess strong leadership and management skills, team spirit and ability to effectively delegate, interpersonal and communication skills, and strong Analytical skills.
“Knowledge of the Nigerian tax laws and appreciation of their application and understanding of the regulatory framework within which the FIRS operates,” the FIRS said.
“Knowledge of business/industry environment within which taxpayers operate.
“Ability to work as a regulator with the courage to ensure full compliance with laws.
“Interested candidates should apply via official FIRS career portal: careers.firs.gov.ng and or FIRS verified social media handles.”
The FIRS said the application portal will open on December 23, 2024, noting that the deadline for submissions is January 11, 2025.
The service advised applicants to carefully review the eligibility criteria before applying to ensure they meet all requirements and understand the qualifications needed for successful selection.
Business
UBA GMD calls for public-private partnership to accelerate economic growth
Oliver Alawuba, group managing director (GMD) and chief executive officer (CEO) of United Bank for Africa (UBA), has called for public-private partnership (PPP) to accelerate economic growth.
Alawuba spoke on December 20 during the launch of the newly renovated departure section of the Murtala Muhammed International Airport (MMIA), Lagos, refurbished by UBA.
According to a statement on Sunday by the bank, the project, which signifies a transformative moment in Nigeria’s aviation sector, shows UBA’s commitment to national development, highlighting the immense value of strategic PPPs.
The ceremony was attended by stakeholders, including Festus Keyamo, minister of aviation and aerospace development, and Olubunmi Kuku, managing director of the Federal Airports Authority of Nigeria (FAAN).
Alawuba commended the collaboration that led to the execution of the project, emphasising the need for public and private institutions to come together to build and revamp the nation’s assets.
“This renovation is a testament of UBA’s belief in the transformative power of investing in national assets. By modernising our airports, we not only enhance infrastructure but also position Nigeria as a global hub for tourism, trade, and investment,” he said.
“Public-private partnerships like this demonstrate what can be achieved when we unite for a shared vision of progress and investing in infrastructure catalyses economic growth, improves travel experiences, and creates opportunities across various sectors of the economy.
“The commissioning of the renovated departure section serves as a reminder of what strategic partnerships can achieve in driving national development and elevating Nigeria’s global standing.”
Business
Petrol to sell at N935/litre from today, says IPMAN
The Independent Petroleum Marketers Association of Nigeria has said that petrol is going to sell at N935 per litre beginning from Monday (today) based on the latest arrangement with the Dangote Petroleum Refinery.
IPMAN’s National President, Maigandi Garima, said the reduction in Dangote refinery’s ex-depot price for petrol and the uniform arrangement being put in place, would enable marketers to sell at N935 in their outlets nationwide, incurring a cost of N36 on logistics.
“Dangote refinery has brought another new arrangement of loading and pricing by which marketers would pay a fixed ex-depot price of N899.50k.
“The refinery is running a programme whereby it wants the fuel consumption across the country to be at the same rate. We are expecting the new arrangement to kick-start on Monday. Previously, the loading price was N970 per litre, but from Monday, petrol prices will drop to N935,” Garima stated.
The association also stated that over 30,000 of its members are set to commence petrol loading from the Dangote Petroleum Refinery and the Port Harcourt Refining Company following the reduction of the ex-depot price of the product to N899 per litre.
This came as it was observed that the pump price of petrol dropped on Sunday to between N950 and N980 per litre in a few filling stations in Lagos including MRS, BOVAS and NNPC. However, the cost was above N1,000 per litre in many other outlets in the state.
But IPMAN promised on Sunday that the price would drop further, as it said the cost of petrol would reduce to N935 per litre in more filling stations by Monday (today) in view of Dangote refinery’s new arrangement.
Similarly, retail outlet owners under the auspices of the Petroleum Products Retail Outlet Owners Association of Nigeria have begun registration with MRS filling station to lift Dangote petrol at N935 per litre.
The IPMAN National Publicity officer, Chinedu Ukadike, and the PETROAN President, Billy Gillis-Harry, disclosed these during separate exclusive interviews with The PUNCH on Sunday.
The development came after intense pricing competition in the nation’s downstream sector, which triggered a price war between NNPCL and Dangote due to a reduction in the ex-depot price to N899 per litre.
On Saturday, the NNPCL, in a surprising development, slashed petrol prices by 12 per cent, to the delight of Nigerians and marketers.
This decision, coming days after the Dangote Refinery reduced its price to N899, was confirmed by the Petroleum Products Retail Outlet Owners Association of Nigeria in a statement on Saturday.
Before now, petrol prices had consistently increased, causing customers to worry that the price hike might be sustained during the festive season.
The reduction in price to N935 in Lagos confirms projections by marketers and was exclusively reported by The PUNCH last Friday.
Providing further updates on the preparations for product lifting, the IPMAN publicity officer stated that marketers are getting ready to start loading petrol at a reduced price, as the national oil company has updated its pricing on the purchase portal.
Ukadike also said that the competition for market share between NNPCL and Dangote is beneficial for Nigerians because, in the end, it will reveal the true cost of PMS production and the expenses incurred in logistics.
According to him, the price war is central to a deregulated oil sector.
He said, “NNPCL has changed their price at their portal. It means that everyone who has access to that portal can be able to request and pay for products. Once you pay, you will called to the depot to pick up your products. Yes, they have changed the price on their portal.”
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