In one of the largest real estate transactions in Africa over the past year, Lango Real Estate Limited has agreed to acquire the Africa (ex-South Africa) retail real estate portfolio ultimately owned by JSE-listed REITs Hyprop Investments Limited and Attacq Limited.
Lango, a leading real estate company focused on direct investments into prime commercial assets in key gateway cities across the African continent, agreed on the acquisition of a portfolio of four shopping malls located in Accra, Ghana and Lagos, Nigeria, with an attributable value in excess of US$200 million.
The assets acquired include three retail assets in Ghana, including the iconic Accra Mall, one of the leading retail assets on the continent, along with Kumasi City Mall and West Hills Mall. Ikeja City Mall, arguably the most successful retail asset in Nigeria, was also acquired. The portfolio was acquired via an issue of Lango shares to the vendors, along with part debt-finance, with RMB acting as lead arranger.
Launched in 2018, Lango was originally established by South Africa’s largest primary JSE-listed REIT, Growthpoint Properties Limited, and LSE- and JSE-listed global investment manager, Ninety One (previously Investec Asset Management). Growthpoint also has a c.20% shareholding in Lango, alongside other notable South African and international institutional investors.
Lango has an established track record in concluding successful and accretive transactions, such as the RMB Westport property portfolio, the largest portfolio acquisition on the continent (excluding South Africa), and has achieved further significant growth. It has successfully managed to aggregate a high-quality portfolio of commercial real estate assets to attain meaningful scale and relevance in the sector.
Lango focuses on prime income-generating office, industrial and retail assets spread across key gateway cities in four countries: Ghana, Zambia, Nigeria and Angola. Assets include landmark properties such as the Standard Bank (Stanbic) head office in Ghana, Standard Chartered Head Office in Ghana, Manda Hill Shopping Centre in Zambia, and The Wings, an A-grade office complex in Victoria Island, Lagos.
Thomas Reilly, CEO of Lango, says, “This transaction is a significant milestone for Lango and not only fits squarely into our growth strategy, but is also highly accretive. The scale achieved by Lango undoubtedly positions it as a leading Sub-Saharan African firm in the industry. Lango will now have c.US$875 million of assets under management across four countries, with arguably some of the best-performing landmark commercial properties across both the retail and office sectors in select growth cities. These assets are well-positioned to allow Lango to extract synergies and further enhance growth with a high degree of resilience to differing market cycles.”
Reilly adds, “We are excited to once again take advantage of a highly attractive entry-point in the cycle, adding quality yielding assets in select cities to our asset base at competitive prices, which we believe have the potential to offer strong growth prospects. The business continues to enjoy significant momentum, and we expect this to aid in the delivery of sustainable long-term investor returns.”
Morne Wilken, CEO of Hyprop, adds, “Hyprop management has previously committed itself to achieving several strategic initiatives, with the exit of Sub-Saharan Africa being one of the last remaining initiatives to be completed. The successful implementation of this transaction will achieve this initiative, and we look forward to working with Lango to completion.”
Attacq CEO, Jackie van Niekerk, comments, “Our Rest of Africa (ex-South Africa) investment has become a small component of Attacq’s real estate investments and has been earmarked as part of an exit strategy by way of an orderly disposal. We are delighted to reach a point where a transaction with a credible counterpart in Lango has been agreed.”
Reilly concludes, “The growth and scale that Lango has achieved, supported by our partners in this transaction, enhances Lango’s ability to further entrench and capitalise on its position as a dominant player in the African real estate market, and creates a platform to facilitate considerable future growth as it heads toward a listing on the LSE.”
/ends
ABOUT LANGO REAL ESTATE:
Lango is a private real estate company focused on generating compelling and sustainable investor returns through the acquisition of prime income generating commercial real estate assets in key gateway cities across the African continent. Originally jointly established between Ninety One (previously Investec Asset Management) and Growthpoint Properties, Lango commenced operations in March 2018. The business has since demonstrated significant growth, emerging as a leader in the asset class in Africa, with assets on its balance sheet in excess of $600million* and spread across four countries. Lango ultimately aims to catalyse the capital market for real estate as an asset class in Africa and intends to list on the London Stock Exchange over the medium term. *As at end June 2024.
Visit Langorealestate.com for more information and connect with Lango on LinkedIn
ABOUT HYPROP
Hyprop is a retail focused REIT, owning and managing a c. R40 billion portfolio of mixed-use precincts underpinned by dominant retail centres in key economic nodes in South Africa and Eastern Europe. Our multi-skilled, diverse team of experts practice conscious retail, underpinned by a sustainable business, models meaningful social impact and a robust governance framework to create long-term value for all our stakeholders.
Visit www.hyprop.co.za
ABOUT ATTACQ
Attacq is a Real Estate Investment Trust (REIT), based in South Africa and listed on the Johannesburg Stock Exchange (JSE) and A2X Markets, with a vision to create sustainable value for all stakeholders through a value-based strategy, whilst making a positive impact in the communities we serve and driving sustainable environmental solutions in our property portfolio.
Visit www.attacq.co.za
RELEASED BY:
Lango Real Estate
Thomas Reilly, CEO
Tel: +44 20 3938 2203/ +44 7408 807 878
Hyprop
Wilhelm Nauta, CIO
Tel: +27 447 0090 (Ext. 1014) / +27 82 570 5063
Attacq
Peter de Villiers, Investment Executive
Tel: +27 82 926 3432
