Though the retail market in Nigeria is still evolving, arguably, no other segment of the real estate sector has received a greater share of investors’ confidence and interest in the Nigerian economy than this market in which it is estimated that N200 billion has been invested in the past couple of years.
This market has seen growth in terms of spread and acceptance driven by compelling fundamentals.
Nigeria’s 170 million population is said to be growing at 2.5 percent per annum with an estimated 42 percent urban population while per capita income of the people has increased from $378 to N$1,615 within a 10-year period spanning 2,000 to 2012. Also, preferences have changed considerably.
Apart from demographics, Nigerians also have strong buying power and this has been corroborated by a study carried out by a private equity investment firm showing that within a four-million population consisting of one million households in Lagos, $1,500 is spent monthly on consumables by each of the households while, in Abuja, each of the city’s over 68,000 households within its 2.2 million population spends over $150,000 annually on consumables.
These are compelling and attractive statistics for local investors and international retailers who, more than ever before, are in Nigerian market to take a bite of the immense opportunities in the market.
“The potential of this market is unlimited, though it is relatively immature. I think Africa is the flavor of the moment and it is only natural for international investors to migrate to the continent”, Japie Swart, Resilient Africa’s Chief Operating Officer told BusinessDay in Lagos. Resilient Africa is the developer of upcoming Delta and Owerri Malls.
Before now, retail outlets were mainly urban-based, cited only in major cities of the country. Today, the game has changed with many shopping malls coming up in second tier cities of the country including Enugu, Kano, Delta, Owerri, Onitsha, Kwara, Ibadan etc.
“Wherever we see opportunity, we pursue it. All of us cannot just focus on the big cities. By doing that, we will be over-supplying the market in the big cities, but not tapping the opportunities in the rest of Nigeria”, explains Matthew Chency, Resilient Africa’s Project Manager.
After the two premier malls in Lagos—The Palms and Ikeja City Mall, the retail market has seen many more—some delivered and many others at different stages of completion. Some of them stand out for reasons of size, strategic location, shopping convenience, available infrastructure, among others.
• Jabi Lake Mall
This mall, touted as the biggest in Nigeria in terms of size, sits by the shores of Jabi Lake –a natural body of water in the Jabi District of Abuja. Tthe Mall which covers 31,000 square metres of gross buildable area is just 10-minute drive away from the Central Business District of Abuja.
Developed by Actis, an equity investment firm and Duval Properties, Jabi Mall proposes 27,000 square metres of modern retail space. The $120 million mall is expected to open for business later in 2015 and will berth two levels of parking space for 733 cars, in addition to motorcycle and bicycle parking.
• Royal Garden Mall
Royal Garden Mall promises to be one of Nigeria’s biggest mall in terms of size when delivered by 2017, with an estimated 30,000 square metres of retail and entertainment space. Conceived by Trojan Estates Limited and RMB Westport, the mall is located next to the entrance of Royal Garden Estate along the Lekki-Epe Expressway with the primary purpose of offering convenience to residents of the estate. Expected to gulp $170 million, the mall will differ from its contemporaries by the number of entertainment, dining options, fashion court and promotional areas that will be on offer.
• The Palms extension
Persianas Group is developing an extension of The Palms shopping mall, which will berth about 40,000 square metres of additional retail space and will be delivered by 2016.
The development is a two-storey building with a total build-area of around 25,000 square metres of which approximately 20,500 square metres is lettable space.
Tenants expected at the mall include Shoprite, the anchor tenant, Game, The Hub and Genesis Cinemas. Other international brands expected ar Hugo Boss, Mango, MAC, Lacoste, Nike, Swatch, KFC, Sony, Puma, Genesis Cinemas and Wrangler.
• Osapa Convenience centre
Situated at the Jakande Roundabout on the Lekki-Epe Expressway in Lagos, Osapa Convenience centre is a new innovation in retail development a delivery given its uncommon blend with a Grade ‘A’ office complex on the same premises. The mall which promises 13,985 square metres of Gross Letable Area (GLA) will avail both clients and shoppers an exceptional retail experience when delivered.
According to its promoters, the mall will be developed in Carlifonia-styled Open Mall shopping design, complete with shaded walkways, umbrella’s on the fast food strip, cool courtyards beneath the offices, generous landscaping and 373 parking bays to ease movement for shoppers, when delivered in the fourth quarter of 2015.
• Lekki Mall
Novare Property Development’s Lekki Mall is a response to the yearnings of residents at the extreme end of the Lekki-Epe expressway. Billed to open for business by April 2016, Lekki mall is a single level shopping centre expected to offer 100 shops in its expansive 22,000 square metre Gross Leasable Area (GLA).
Findings reveal that the $83m mall will offer a perfect mix of international and local tenants such that it will appeal to a broad segment of consumers. Some of the tenants expected at the mall include, anchor tenant Shoprite, Adidas, Lifemate, Puma, Swatch, Celio, KFC, Wakaberry, Max, Mr. price, Ingot, Samsung amongst others
• Festival Mall
Festival Mall is UACN Property Development Company (UPDC) Plc contribution to Nigeria’s ongoing retail revolution. The retail facility is designed to complement the firm’s mixed-use community in Festac Town comprising residential, commercial and retail developments. Expected to cost N5 billion, Festival mall which aims to deliver about 10,900 square metres of modern retail space will be anchored by South African retail giant, Shoprite and SilverBird Cinema. The facility is expected to open its doors for business later in 2015.
• Ado Bayero Mall
Ado Bayero Mall by Alpine Investment Limited officially opened for business in the last quarter of 2014, to offer Kano’s growing middle class an uncommon shopping experience and also boost the commercial, economic and social life in the ancient city.
It sits on a gross built area of 31,000 square metres, at the heart of the city, the mall hosts departmental stores, banks, fast-food outlets and restaurants.
Its developers say they intend to make the mall one of the top three highest grossing shopping centres in the country as measured by sales per square metre, adding that they will also promote the super-regional mall as the biggest family-oriented shopping and entertainment attraction in Northern Nigeria.
• Onitsha Mall
African Capital Alliance (ACA), a leading private equity investment firm in Nigeria, in collaboration with Anambra State Government will deliver the 12,000 square metre Onitsha Mall by the second quarter of 2015. Located along Park Road in the exclusive Onitsha Government Reserved Area (G.R.A), Onitsha Mall offers 52 in-line stores of various sizes for prospective tenants.
It will also boast 24 hours electricity supply and security, over 500 parking bays, six local and international restaurant, central air conditioning, ATM gallery and five stores reserved for banks.
• Delta Mall
Delta Mall is a product of a perfect synergy among Stanbic IBTC as development partners, Resilient Africa and the Delta State government to offer shoppers in the Warri area a modern retail experience.
Located at Efurun roundabout in Delta State, the mall will berth 65 individual shops in its 14,000 square metres of gross lettable area. Some of the confirmed tenants at the mall are Shoprite, Lifemate Furniture and Mr Price. Its developers say the mall will gulp almost $60 million.
• Abia Mall
Abia Mall is a joint venture between the Abia State government and Pro- M Limited to provide a fully digital mall that will serve as a one-stop destination for dining, shopping, entertainment and banking activities for the state’s savvy middle class. The mall proposes about 11,557 square meters of retail space and is expected to grow the economy of the state by 10-15 percent.
CHUKA UROKO & ODINAKA MBONU
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