Resilient REIT said in their 2023 annual financial statement that they had sold their share in Resilient Africa, the joint venture that owns the malls in Delta, Asaba, and Owerri and is comprised of Resilient REIT (60.94%) and Shoprite Holdings (39.04%).
The commercial complexes have a combined gross leasable retail area of 30,015 m2, having been completed between 2015 and 2016.
Resilient Africa was founded more than a decade ago to build high-quality retail centres in a few major cities across Nigeria. But in 2021, the board of Resilient Africa decided to sell Shoprite Holdings to their mall holdings because of the dire predictions for the nation’s retail sector, and the agreement did not go through.
Subsequently, in 2021, Shoprite Holdings extended a $45 million loan to Resilient Africa, with a repayment deadline of March 2024.
Resilient disclosed that: “As the valuation of the properties exceeds the value of the funding, Resilient and Shoprite effectively agreed, after year-end, that Resilient’s portion of the properties will settle its share of the debt. Consequently, Resilient will dispose of its Nigerian operations to Shoprite for a consideration of R1.”
Continuing, the profit attributable to ordinary shareholders for the year ending December 31, 2023, was R3.5 billion, according per the financial accounts of Resilient Africa.
Also read: https://brandspurng.com/2024/07/27/cbn-to-dish-out-sale-of-148m-to-authorized-dealers-in-nfem/
By December 2023, Resilient’s net asset value stood at R66.28 per share, of which 42 cents per share came from the Nigerian investment.
According to the Financial statement from Resilient REIT: Mall valuation effective December 2023.
According to Brandspur national news brand, their financial documents show that as of December 2023, the malls were valued at a total of $28.9 million, with $66 million representing their capitalised costs up to that time.
Shoprite Holdings Retains Its Position in the Nigerian Retail Market
Even though Resilient sold its supermarket network to Ketron Investments, a Persianas Investment affiliate, in 2021, Shoprite Holdings remains a dominant force in the Nigerian retail industry thanks to its acquisition of Resilient’s 60.94% ownership in the malls.
Consequently, Shoprite supermarket will act as the anchor tenant of all the retail properties that Shoprite Holdings has bought.
However, it is expedient to note that Shoprite NG and Shoprite Holdings are two distinct organisations. The bigger South African Holdco, Shoprite Holdings, was the previous owner and operator of Shoprite Nigeria.
The grocery chain kept its original name and identity even though it was sold as previously indicated.
