In their 2023 financial report, Resilient REIT shared big news. They sold their part of Resilient Africa, a joint venture with Shoprite Holdings. This partnership owned malls in Delta, Asaba, and Owerri.
These shopping malls opened between 2015 and 2016. Together, they have a retail space of 30,015 square meters.
Resilient Africa was formed over ten years ago to build top-quality malls in Nigeria’s major cities. But, in 2021, they decided to sell their shares in these malls to Shoprite Holdings because the future of Nigeria’s retail market didn’t look good.
However, the sale didn’t happen as planned. Instead, Shoprite Holdings gave Resilient Africa a $45 million loan in 2021, due by March 2024.
Resilient explained, “Since the mall properties are worth more than the loan amount, Resilient and Shoprite agreed that Resilient’s share of the properties will pay off their part of the debt. So, Resilient will sell its Nigerian operations to Shoprite for just R1.”
According to Resilient Africa’s financial report, their profit for the year ending December 31, 2023, was R3.5 billion. The Nigerian investment added 42 cents per share to Resilient’s overall value of R66.28 per share as of December 2023.
The total value of the malls in December 2023 was $28.9 million, and the costs incurred up to that time were $66 million.
Shoprite Holdings Grows in Nigerian Retail Market
By buying Resilient’s 60.94% stake in the malls, Shoprite Holdings now fully owns them. This strengthens their presence in Nigeria’s retail market, even after selling their supermarket chain in Nigeria to Ketron Investments in 2021.
Now, Shoprite Holdings will be the landlord of these malls, with each one having a Shoprite supermarket as the main tenant.
Note: Shoprite Holdings is not the same as Shoprite NG. Shoprite Holdings is a bigger company in South Africa that used to own and run Shoprite Nigeria. Even after selling the supermarket chain, the name and branding stayed the same.
Author: Bisi Adedun
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