The International Finance Corporation (IFC), a member of the World Bank Group, is investing 20 billion naira ($124 million) in Persianas Group to support its growth strategy in the rapidly expanding, and underserved retail and real estate market in Nigeria.
The IFC is offering an investment package of about $74 million in equity through the IFC and IFC ALAC Fund, and $50 million in debt provided by IFC.
IFC Asset Management Company LLC, a subsidiary of IFC, invests third-party capital, enables outside investors to benefit from IFC’s expertise in achieving strong equity returns as well as positive development impact in the countries in which it invests.
Meanwhile, Persianas Group, developers of the Palms Shopping Mall, a premier shopping destination in Lagos, is planning to use the funds to further develop three or more retail and mixed-use centers in commercial cities in Nigeria, and establish a fully integrated design, property development, and asset management firm.
According to the chairman of the Persianas Group, Tayo Amusan, “IFC’s investment in Persianas demonstrates a commitment to supporting Nigerian entrepreneurs and is critical to preparing Persianas for our next phase of growth. This investment will help real estate development contribute to more jobs in businesses offering safe and healthy consumer products and services.”
Speaking on the new investment, IFC Regional Industry Director for Sub-Saharan Africa and Latin America and the Caribbean, Oscar Chemerinski said, “IFC’s partnership with Persianas supports a rapidly growing, more diversified economy and encourages private investors in the Nigerian retail and commercial property industry. Persianas’ property developments provide a platform for smaller businesses to expand their retail operations.”
Sujoy Bose, Chief Investment Officer and Head of IFC ALAC Fund said, “Nigeria remains one of sub-Saharan Africa’s fastest growing retail markets due to increasing urbanisation and retail consumption. This investment provides a unique opportunity for the IFC ALAC Fund to support Persianas’ growth strategy through the development of high quality commercial properties in Nigeria.”
Apart from the Palms in Lagos, Persianas’ other properties also includes the Polo Park Mall in Enugu State; Kwara Mall (under development) in Kwara State; and, Ibadan Mall (under development) in Oyo State.
