RMB, Stanbic in joint equity funding for US$182 The Wings construction
Foreign interests are increasingly taking position in the economy of Sub-Saharan Africa in general and Nigeria in particular, and the depth of their belief and faith in this economy is demonstrated, at various degrees, by the volume and spread of their investment in real estate and other major asset classes.
Urbanisation and population, which are major market drivers, are growing in leaps and bounds in Africa which, according to analysts, currently has the world’s highest rate of urbanisation. Demographic projections anticipate that by 2050, the continent will be home to almost two billion people who will be needing homes, shopping malls and offices to work from.
The foreign interests find these statistics and opportunities quite compelling and it on this premise that the Rand Merchant Bank (RMB) alongside Stanbic IBTC has raised US$100 million to fund the construction of The Wings office complex in Lagos estimated to cost US$182 million on completion.
The Wings, sponsored by RMB Westport, Standard Bank Group, and Oando Plc is a twin-tower office complex rising 15 floors and touted to be Nigeria’s first Grade- A office building that will be offering approximately 25,500 square metres of lettable office space with international specification.
At the ground breaking to commence construction of the office complex, Michael Larbie. RMB Nigeria chief executive and Regional Head, West Africa, disclosed that RMB Westport would be leading the development management team responsible for The Wings, assuring that the same level of success that the team achieved in developing Ikeja City Mall would be experienced at The Wings.
Earlier in a statement, Simon Fifield, RMB Real Estate Investment Banking head, had revealed that providing debt funding for The Wings was part of RMB’s ongoing strategy of working closely with local and international clients to provide financial solutions for real estate projects across sub-Saharan Africa.
“Over the past three years, we have funded more than 10 high profile property developments in six sub-Saharan African countries, with a total commitment of over $200-million. Our expertise in Africa and knowledge of local real estate markets means we have been presented with many further opportunities”, he said.
Larbie added that, over the next five years, RMB Westport would be investing a further $250m of equity into projects in Nigeria, pointing out that at RMB, “we see Nigeria as being one of the countries in Africa that offers some of the best investment opportunities. Or said in another way: To be able to refer to yourself as a successful African business you have to be successful in Nigeria”.
“The Wings represents our commitment to use our expertise and resources to support landmark projects in Nigeria. With the launch of RMB Nigeria, earlier this year, we expect to structure and fund more projects in real estate and, indeed, across other sectors of the Nigerian economy”, he said.
Hence, our goal is to deploy resources across the different sectors of the economy to enable us participate and benefit from the investment opportunities in such areas as property, infrastructure development, resources, manufacturing etc”, he added.
According to him, RMB Westport has, since its inception in 2008, achieved significant milestones in delivering high-grade retail, commercial and industrial property developments in Nigeria and Ghana respectively including the Ikeja City Mall, two office buildings in Ghana, and one coming up in Abuja.
In their remarks at the ground breaking event, Jubril Adewale Tinubu, Group CEO, OandO Plc, which will be the anchor tenant occupying one of the towers, expressed gratitude to the equity providers and all other stakeholders, while Sola David-Borha, CEO, Stanbic IBTC, explained that their involvement in any project is based on their understanding that the client is resilient, focused and dependable. “We are pleased to be part of this project”, she added.
By: Chuka Uroko