Johannesburg - A $182 million (R1.88 billion) A-grade office development in Lagos in Nigeria is being funded jointly by Rand Merchant Bank (RMB) and Stanbic.
RMB, from the FirstRand stable, and Stanbic, part of the Standard Bank group, have each committed to provide $50m in development and long-term debt funding for the 25 500m2 Wings Oando development, which is being developed and project managed by RMB Westport Real Estate Development Fund.
Simon Fifield, the head of RMB property investment banking, said yesterday that aside from the debt funding, the rest of the financing for the development came from three equity providers and shareholders – the RMB Westport fund, Oando and Stanbic.
Fifield said he was unable to comment on the shareholding held in the development by the three shareholders because he was bound by a confidentiality agreement.
The Wings Oando development is located on Victoria Island between Lagos Island and the Lekki Peninsula and comprises two high-rise office towers. Each of the towers will offer more than 12 000m2 of office space.
One of the towers is to be let to Oando, Nigeria’s largest domestic oil company.
Construction began earlier this month and the development is expected to be completed by March 2016.
RMB Nigeria chief executive Michael Larbie said the development represented RMB’s commitment to use its expertise and resources to support landmark projects in Nigeria.
“With the launch of RMB Nigeria earlier this year, we expect to structure and fund more projects in real estate and, indeed, across other sectors of the Nigerian economy,” he said. - Business Report