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AXA Mansard Investments, a leading asset manager, has signed a deal to invest N800 million ($4 million) in Maryland Mall, an ultra-modern retail development located in Maryland, Ikeja, Lagos.

The Maryland Mall is a world-class retail facility being promoted by Purple Capital Partners Ltd, a Lagos-based specialist investment firm. The mall is estimated to be worth over N5 billion ($25 million) upon completion, later this year.

The AXA Mansard deal, which was concluded last week, showcases the continued attractiveness of the Nigeria's retail sector, despite the economic downturn. According to a statement on Sunday by Purple Capital Partners, the deal represents the single largest direct investment in Nigeria's retail and real estate sectors by a financial institution in 2016.

Renowned local and international brands, such as Shoprite, Genesis Deluxe Cinemas and The Place restaurant, will be located inside the Maryland Mall. The Shoprite chain at the Maryland Mall will be the first outlet of the retail chain to commence Shoprite's new concept, "Usave". The concept enables shoppers to purchase top brands at lower prices.  

“We are particularly delighted to be partnering with AXA Mansard on this journey into the future of retail in Africa’s largest economy,” Obinna Onunkwo, co-managing partner of Purple Capital Partners, said. “This transaction represents much more than a cash injection in the project, it is an expression of the trust reposed in the project and its importance in the evolving retail landscape,” he added.

The mall is also touted to have the largest LED screen in Sub Saharan Africa. The 550 square meter LED screen will set the mall apart from other retail complexes in Nigeria. The developers of the retail facility said the mall reflects the interconnectedness of various economic sectors including real estate, retail, construction, technology, logistics, finance and investment, facilities management, marketing communications, physical asset management and asset protection.

“Notwithstanding the challenging economic climate, Nigeria remains an investor’s haven, and this strategic transaction with AXA Mansard is clear evidence that it is possible to structure sound investments that can impact different sectors of the economy,” stated Olaide Agboola, Purple Capital Partners’ co-managing partner.

Analysts estimate that Nigeria has at least 18 large shopping malls, each with at least 10,000 square meters of space to rent (about 108,000 square feet), serving the country’s 182 million people. About 2 percent of Nigerians are said to shop in formal retail supermarkets, compared to 60 percent of South Africans, 30 percent of Kenyans, 4 percent of Ghanaians, and 2 percent of Cameroonians. With over 20 million population, Lagos is projected by the United Nations to be the ninth largest city in the world by 2030. The city and its suburbs are home to a fast growing middle class, whose lifestyle choices will fuel the demand for modern goods and services.

Purple Capital Partners said hundreds of jobs have been created during the construction of the mall over the last two to three years. The mall is 95 percent complete. Hundreds of more jobs will also be created directly and indirectly when the mall opens.

“This investment reflects our commitment to supporting creative home grown opportunities and businesses as key catalysts for economic development as well as our resolve to keep our clients well positioned in an evolving investment landscape,” said Deji Tunde-Anjous, Chief Executive Officer of AXA Mansard Investments Ltd, a wholly owned subsidiary of AXA Mansard Insurance Plc., a member of the AXA Group.

The deal consists of a mix of debt and convertible debt stock, reinforcing Nigeria’s ranking as a top destination for retail investments in Africa, which is driven by its population size, rapid urbanization and economic growth.