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Key Points
- Attacq and Hyprop are divesting shopping mall stakes in Ghana and Nigeria to Lango Real Estate for R1 billion ($60 million).
- Economic issues, including currency depreciation and inflation, have led Attacq and Hyprop to exit sub-Saharan markets outside South Africa.
- Attacq has purchased the remaining 20% of Mall of Africa for R1.07 billion ($58 million), expanding its South African retail presence.
Attacq Limited, a JSE-listed real estate investment trust (REIT) led by South African executive Jackie van Niekerk, and Hyprop, a major specialized shopping center REIT in Africa, have announced plans to divest their stakes in shopping mall assets in Ghana and Nigeria. The assets will be sold to Lango Real Estate Limited in a deal valued at R1 billion ($60 million).
Under the leadership of Jackie van Niekerk, Attacq has concentrated on its core holdings, including the prominent Mall of Africa at Waterfall City. The company’s pan-African investments include a 25-percent stake in Gruppo, the owner of Nigeria’s Ikeja City Mall, and a 26.9 percent interest in AttAfrica, which manages three retail properties in Ghana.
Economic challenges prompt exit from sub-saharan markets
Attacq, through AIH International, and Hyprop, via Hyprop Mauritius, currently hold shares in Nigeria’s Gruppo Investments and Ghana’s AttAfrica. AIH International owns 25 percent of Gruppo, while Hyprop Mauritius holds 75 percent. In AttAfrica, each group owns a 50 percent share, with economic interests split at 27 percent for Attacq and 73 percent for Hyprop.
The sale of these stakes aligns with Attacq’s strategic decision to exit sub-Saharan African markets outside South Africa, focusing instead on domestic assets. The company cited challenges such as currency depreciation, inflation, and liquidity issues in both Nigeria and Ghana as key reasons for the sale. These economic difficulties have impacted cash flow and forced South African operations to support the sub-Saharan portfolio financially.
Attacq expands with mall acquisition
Despite the retreat from sub-Saharan Africa, Attacq is expanding its footprint in South Africa. Earlier this year, the company acquired the remaining 20 percent of the Mall of Africa from the Atterbury Group for R1.07 billion ($58 million).
This acquisition, completed by AWIC, Attacq’s 70-percent-owned subsidiary, gives Attacq full ownership of Mall of Africa, reinforcing its position in the South African retail market.
