Big boost for retail market as Maryland Mall developers get N800m facility

It was a big boost as well as good news for the retail market in Nigeria recently when the developers of the Maryland Mall, Purple Capital Partners Limited (PCPL), confirmed an N800 million credit facility from AXA Mansard Investments Limited dedicated to the development of the mall.

The ultra-modern mall, which sits on 7,700 square metres of land located on one of the most important arterial routes in Lagos where about 5,000 cars pass through every hour, is estimated to cost over ₦5 billion (about $25 million) upon completion in a couple of months.

The mall is expected to have the first dedicated underground car park in Nigeria and will play host to a mix of local and international brands to be anchored by Shoprite, Genesis Deluxe Cinemas and The Place Restaurant. The mall will have a 550 square meter LED screen, the largest in Sub-Sahara Africa and this unique feature will set it apart from any other retail complex in the country.

PCPL, a specialist investment firm with business areas in principal investment, private equity and real estate, says it is particularly delighted to partner with AXA Mansard on this journey into the future of retail in Africa’s largest economy.

“This transaction represents much more than a cash injection in the project; it is an expression of the trust reposed in the project and its importance in the evolving retail landscape,” says Obinna Onunkwo, a co-managing partner at PCPL who also disclosed that the firm has raised over USD50 million to fund its various projects in retail, entertainment and leisure (REL) sectors over the last three years.

Olaide Agboola, PCPL’s other co-managing partner, also notes that the successful execution of this transaction confirms the efficacy of the company’s investor and stakeholder relations, pointing out that the firm effectively incorporates the demands and privileges of key stakeholders in the financial services industry, land owners, the Lagos State government and relevant federal institutions and authorities.

“Notwithstanding the challenging economic climate, Nigeria remains an investor’s haven, and this strategic transaction with AXA Mansard is clear evidence that it is possible to structure sound investments that can impact different sectors of the economy,” Agboola says.

Deji Tunde-Anjous, AXA Mansard’s Chief Executive Officer, shares in this enthusiasm and says “this investment reflects our commitment to supporting creative home grown opportunities and businesses as key catalysts for economic development as well as our resolve to keep our clients well positioned in an evolving investment landscape”.

The deal, which is a mix of debt and convertible debt stock, reinforces the country’s ranking as a top destination for retail investments in Africa, driven by its population size, rapid urbanization, growth and economic resilience. It also offers the potential for future collaboration between both entities, as Purple Capital expands its bespoke retail offering across the nation.

As Nigeria’s commercial capital, Lagos is expected to lead the national count for modern shopping malls over the next decade, in tandem with the city’s fast growing population, currently put at anywhere between 17 and 20 million people.

Nigeria’s as a whole presents a fabulous investment opportunity in its retail sector as the country, despite its strong demographics and buying power, is still lagging behind other African country with only 2 percent of the citizens shopping in formal retail supermarkets compared to 60 percent of South Africans, 30 percent of Kenyans and 4 percent of Ghanaians who shop in formal retail supermarkets.

In real estate, location is everything and, for Maryland Mall, this is quite significant as Maryland area, a middle class settlement, aptly illustrates the various realities of city life. Located right in the middle of mainland Lagos, Maryland has been a residential district and a hectic hub of social activities for decades; it is also an economic and commercial nerve center; a major intersection connecting citizens and visitors alike to the major thoroughfares across the city, and a perfect exhibit of the city’s quest for affordable, urban development.

CHUKA UROKO