Photo by: Bloomberg
Rand Merchant Bank (RMB) has committed to jointly fund a $182-million A-grade office development in Lagos, Nigeria, which should be completed by March 2016.
The Wings Oando Development, consisting of two high-rise office towers on Victoria Island, between Lagos Island and the Lekki Peninsula, saw first ground turned at a ceremony in Lagos on Wendesday.
RMB, together with another funder, committed to the $100-million development and long-term debt funding for the 25 500 m2 office development. Each office tower would offer space of more than 12 000 m2, with one of the two being let to Oando, the largest indigenous oil company in Nigeria.
“Providing debt funding for the Wings Oando Development is part of RMB’s ongoing strategy of working closely with local and international clients to provide financial solutions for real estate projects across sub-Saharan Africa,” said RMB Real Estate Investment Banking head Simon Fifield.
“Over the past three years, we have funded more than ten high-profile property developments in six sub-Saharan countries, with a total commitment of over $200-million. Our expertise in Africa and knowledge of local real estate markets means we have been presented with many further opportunities,” he pointed out.
RMB Nigeria CE 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.”
Wings Oando would be developed and project managed by the RMB Westport Real Estate Development Fund.