By Modupe Gbadeyanka
Africa’s largest mezzanine fund manager, Vantage Capital, has announced providing a funding support of $12.5 million to a prominent Nigerian real estate company and financial service provider, Purple Capital.
The Nigerian firm is the developer of the iconic 6,000m² Maryland Mall tucked in the Ikeja area of Lagos State.
Chief Operating Officer of South African Vantage Capital, Warren van der Merwe, stated that, “The Purple team epitomizes the best of Nigeria’s entrepreneurial spirit with its ability to navigate a demanding operating environment to create market-leading developments.
“Maryland Mall is one such development, a uniquely inviting family destination for Lagosians of all ages.”
The newly opened Maryland Mall offers one-of-a-kind experiences for adults and children, with over 35,000 visitors experiencing the mall’s varied attractions each week.
Entertainment options include one of the only skating rinks in Lagos, a vibrant food court, restaurants and over 50 retail shops.
The centre is home to leading multinational and local brands including Shoprite, Miniso, Uber, Genesis Cinemas, Stanbic IBTC and The Place.
Maryland Mall is located on Ikorodu Road, one of the busiest thoroughfares in Lagos, and entices passers-by with one of the largest LED visual display screens in West Africa.
Commenting further, Associate Partner at Vantage Capital, Johnny Jones, noted that, “Vantage is currently investing over $50 million from its third-generation mezzanine fund in real-estate projects across Sub-Saharan Africa.
“We have reviewed over 50 real-estate opportunities since we launched our latest mezzanine fund but have only selected four to support.
“We are impressed with the Purple team’s cost-effective execution and believe their business is an excellent fit for our investment style.”
On the part of Managing Partner of Purple, Laide Agboola, “We are excited about Vantage Capital’s partnership with Purple on this refinancing and investment transaction which helps us reset, consolidate and gear up for exciting opportunities in the future.
“It also provides a seal of approval and increased possibilities for growth across our focus areas of financial services and real estate development.”
Furthermore, Obinna Onunkwo, Managing Partner of Purple noted that, “Our focus on good corporate governance, high-quality deal origination and execution was a strong attraction for Vantage Capital as an offshore investor. Their investment acts as an enabler to our long-term growth strategy in Africa’s largest economy.”
Purple Capital is headquartered in Lagos and has built a high-quality property portfolio, including upmarket residential estates in the Lekki suburb of Lagos.
The Purple investment is Vantage Capital’s sixth transaction in Fund III, a $280 million (R4 billion) fund, with a 55% allocation to countries outside South Africa.
Purple Capital represents the 24th transaction executed by Vantage across three generations of mezzanine funds with aggregate capital deployed to date of $277 million (R4 billion).
Vantage was advised by Adepetun Caxton-Martins Agbor & Segun, one of Nigeria’s top commercial law firms known for its finance and cross-border M&A work, and Werksmans a leading South African corporate and commercial law firm.
Purple Capital was advised by Bloomfield Law Practice, a ‘practical and hands-on’ Nigerian law firm with expertise in corporate commercial, private equity, real estate and financing matters.
Adedapo Adesanya