Shoprite Holdings becomes majority shareholder in Delta, Asaba, and Owerri Malls in Nigeria 

The shopping centres were completed between 2015 and 2016, and have a total gross leasable retail area of 30,015m2.  

Over a decade ago, Resilient Africa was established to develop quality shopping malls in selected dominant metropolitan areas throughout Nigeria.

However, in 2021, Resilient Africa’s board had resolved to sell their stakes in the malls to Shoprite Holdings, due to the country’s bleak retail market outlook.

However, the deal fell through. Following this, Shoprite Holdings advanced a $45 million loan to Resilient Africa in 2021, which was due for repayment in March 2024.

According to Resilient, “As the valuation of the properties exceeds the value of the funding, Resilient and Shoprite effectively agreed, subsequent to 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.” 

 According to Resilient Africa’s financial statements, the profit attributable to ordinary shareholders for the year ended 31 December 2023 amounted to R3.5 billion.

The Nigerian investment contributed 42 cents per share to Resilient’s net asset value of R66.28 per share as of December 2023. 

 Valuation of the Malls as of December 2023. Source: Resilient REIT Financial statement 

 According to their financial statements, the total valuation of the malls as of December 2023 was $28.9 Million with their capitalized cost up until the same period amounting to $66 Million. 

The acquisition of Resilient’s 60.94% stake in the malls makes Shoprite Holdings the sole owner, and further solidifies its presence in the Nigerian retail market, despite the sale of its supermarket network in Nigeria to Ketron Investments, a subsidiary of Persianas Investment in 2021.

As such, Shoprite Holdings will serve as the landlord of the acquired retail facilities, each with Shoprite supermarket as its anchor tenant.  

 N.B: Shoprite Holdings is a different entity from Shoprite NG. Shoprite Holdings is the larger South African Holdco that previously owned and operated Shoprite Nigeria.

However, while the supermarket chain was sold as mentioned above, they maintained the initial name and branding. 

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