In their 2023 annual financial statement, Resilient REIT disclosed the disposal of their stake in Resilient Africa, the joint venture between Resilient REIT (60.94%) and
Shoprite Holdings (39.04%) that owns Delta, Asaba, and Owerri Malls.
The shopping centres were completed between 2015 and 2016, and have a total
gross leasable retail area of 30,015sqm.
Over a decade ago, Resilient Africa was established to develop quality shopping
malls in selected dominant metropolitan areas throughout Nigeria.
However, the deal fell through. Following this, Shoprite Holdings advanced a $45
million loan to Resilient Africa in 2021, which was due for repayment in March 2024.
According to Resilient, “As the valuation of the properties exceeds the value of the
funding, Resilient and Shoprite effectively agreed, subsequent to year-end, that
Resilient’s portion of the properties will settle its share of the debt. Consequently, Resilient will dispose of its Nigerian operations to Shoprite for a consideration of R1.”
According to Resilient Africa’s financial statements, the profit attributable to ordinary
shareholders for the year ended 31 December 2023 amounted to R3.5 billion.
The Nigerian investment contributed 42 cents per share to Resilient’s net asset value
of R66.28 per share as of December 2023.
Valuation of the Malls as of December 2023. Source: Resilient REIT Financial
statement
According to their financial statements, the total valuation of the malls as of
December 2023 was $28.9 Million with their capitalized cost up until the same period
amounting to $66 Million.
Shoprite Holdings Maintains Footprint in Nigerian Retail Market
The acquisition of Resilient’s 60.94% stake in the malls makes Shoprite Holdings the
sole owner, and further solidifies its presence in the Nigerian retail market, despite
the sale of its supermarket network in Nigeria to Ketron Investments, a subsidiary of
Persianas Investment in 2021.
As such, Shoprite Holdings will serve as the landlord of the acquired retail facilities,
each with Shoprite supermarket as its anchor tenant.
N.B: Shoprite Holdings is a different entity from Shoprite NG. Shoprite Holdings is
the larger South African Holdco that previously owned and operated Shoprite Nigeria.
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