Nigeria Content Online

Thousands of job
opportunities are expected to be generated during and after the
construction of a $100 million (N15 billion) shopping mall in Ikeja
area of Lagos, some investment companies have said.

Actis, a private
equity investor in emerging markets, and its project partners, Paragon
Holdings and RMB Investments & Advisory (RMBIA), made this promise
on Monday as they marked the start of the project construction.

Michael Ejekam,
Actis Director, West Africa, said the Ikeja City Mall project will
boost the supply chain both locally and nationally, and subsequently
generate direct and indirect job opportunities.

Mr. Ejekam said,
“The Mall heralds the beginning of a retail and leisure revolution in
West Africa. There are 3.9 million potential customers within an 8km
radius of the site, but in addition to the local impact. We expect the
Ikeja City Mall to become a hub for visitors from across the region,
and further afield.”

Afolabi Toyo,
Executive Director of Paragon Holdings, said the mall will bring social
and economic development to Ikeja: “There will be significant
employment opportunities during the construction and operation phases,
and we look forward to bringing this world class real estate project to
fruition.”

State support

Babatunde Raji
Fashola, the executive governor of Lagos State, who was represented at
the event by Ganiyu Abiodun Johnson, Special Adviser on Works and
Infrastructure, said, “The Ikeja City Mall is a landmark project for
Lagos. It will bring shops and services to the local community and
bring significant job opportunities. Projects such as this will help us
secure a better future for the citizens of Lagos.

“This is the second
project of its kind which Actis has led in Lagos and I commend Actis
and Paragon for the vision and drive they have shown in getting this
development off the ground. I am honoured to oversee the official start
of construction,” he said.

Shareholdings

Actis is the 60
percent majority owner, while Paragon Holdings and RMBIA each hold 20
percent equity in the project. The project is financed by a mixture of
debt and equity, with a debt facility of $48.6 million (N7.290 billion)
secured from Stanbic IBTC Bank Plc, and Standard Bank of South Africa
Limited.

Actis said the mall
will be an international standard leisure and shopping centre with
restaurants, a cinema, and retail outlets designed to service the Lagos
mainland and return Ikeja to its status as the traditional retail hub
of the city.

The project will
initially develop 28,500 square metres of leisure and retail shopping
space. Anchor tenants already secured include Shoprite and Silverbird.
A large portion of the available space has already been let out;
however, limited space remains for high quality tenants. Construction
at the mall is due to be completed by the end of 2011.

Ngozi Edozien,
Chief Executive at Actis, West Africa, said the Ikeja Mall builds on
the success of Actis’ pioneering Palms Mall in Lekki, as well as
Junction Mall in Nairobi, and Accra Mall in Ghana.

Ms. Edozien said
the company is grateful to the Lagos State government for showing great
leadership and vision in its support for the project.