ACA announces the sale of Cornerstone Tower
African Capital Alliance (“ACA”) today announced the sale of Cornerstone Tower, an A-grade office building in Lagos, to Everty, a strategic investor that focuses on acquisition and development of prime real estate around the world. ACA’s pioneer Real Estate Fund, Capital Alliance Property Investment Company (“CAPIC”) made the investment in partnership with Cornerstone Insurance Plc. and Fin Insurance.
The building, located in Victoria Island, was completed in April 2019 and has 13 floors comprising 24,000m2 of gross building area, and 12,000m2 of gross lettable space, along with features such as raised floors and multi-level parking.
Cornerstone Tower received an IFC Excellence in Design for Greater Efficiencies (“EDGE”) provisional certification as a green building, a recognition given to encourage developers to reduce their buildings’ energy and water consumption by significant percentages, thus lowering their potential carbon footprint.
Everty shared a few comments on the transaction: “We’re pleased to add Cornerstone Tower to our international real estate portfolio. Everty is committed to investing in assets that are at the cutting edge of design and sustainability; and our purchase of Cornerstone Tower is testament to that. Nigeria is increasingly becoming an attractive country for companies to invest in, and buildings such as Cornerstone Tower reflect the ambition and innovation happening across the country.”
Obi Nwogugu, speaking for ACA said, “The sale of Cornerstone Tower, shows that there is a market for properly developed assets that meet high-quality, international specifications. Despite the challenges in Nigeria’s real estate market over recent years, it has become increasingly competitive and sophisticated. Our strategy is to invest in assets in optimal locations and to prepare them for discerning space users. We remain focused on asset differentiation and delivering good returns across our portfolio”.
Mr. Ganiyu Musa, CEO Cornerstone Insurance Plc also expressed delight at the sale, “Our partners met and, in many instances, exceeded our expectations regarding cost, timeliness and quality. We were extremely pleased at the professionalism from conception to exit”.
With this exit, the Cornerstone Tower portfolio investment has delivered a gross USD IRR of 25.6% to CAPIC’s investors.
About ACA and CAPIC African Capital Alliance (ACA) is a leading pan-African investment firm sponsoring funds and managing investments in Sub-Saharan Africa. Capital Alliance Property Investment Company, L.P. (“CAPIC”) is a $165m fund established to invest in real estate and real estate related opportunities in West Africa. The fund invests in residential, retail, office and hospitality assets. The firm is also in the process of launching CAREN II, which is an income and growth product.
ACA exits Wakanow
December 21, 2018, Lagos, Nigeria – ACA is happy to announce the exit from the CAPE III investment in Wakanow. Wakanow is the leading Online Travel Agency (OTA) in West Africa. The Company utilized the CAPE III investment to grow 3 fold during the four year holding period. The Company will now be embarking on a further expansion to become the leading OTA in Africa and CAPE III exited as part of the transaction to fund this additional growth. ACA wishes the company and the management success in the new expansion.
ACA and ELALAN group begin development of Blue Water project
December 17, 2018, Lagos, Nigeria – Blue Water Lagos, also termed the “Ultimate Lifestyle Community” is a contemporary mixed-use development that sits on a 37,000 square meters expanse of sea view land, crafted beautifully with quality and comfort embedded in its design.
Located in the heart of Lekki Phase 1, Blue Water Lagos is made up of 5 residential buildings, blended with commercial spaces, modern conveniences and exciting development features. Its top-notch amenities include leisure, entertainment and recreational facilities that encourage social interaction and passive recreation, and the commercial spaces offer top brands the opportunity to provide quality services for the residents.
It is been developed by Elalan Group and African Capital Alliance, and master planned/designed by Ngonyama Okpanum & Associates. The project is on schedule with completion due by the end of December 2019.
Daraju and ACA announce Cape IV’s investment into Daraju Industries Limited
July 15, 2018, Lagos, Nigeria – Daraju Industries Limited (Daraju) is a manufacturing company that produces local household and personal care products. Daraju fully commenced its Nigerian operations in 2008, with a vision to become a leading local household and personal care manufacturing company. The investment will be used for capex expansion in the company.
The company’s portfolio comprises of a range of personal care and home/laundry care products catering to the Nigerian population. Some brands of the company include MYMY and Extreme brands of toothpaste, Fressia Brands of Soap, Fressia Brands of Petroleum Jelly, as well as MYMY, Soft & Clean and Rana brands of washing detergent. Daraju is focused on producing the highest quality products by all local and international standards. Daraju has strong brand recognition amongst its customer base which is spread accross Nigeria. The company’s products have been certified by ISO with its ISO 9002 certification, as well as all regulatory bodies within the FMCG manufacuturing sector in Nigeria.
With more than 1,000 employees, Daraju operates a robust and efficient manufacturing operation at its factory located in Ota, Ogun State which is constructed and operated with the high industry standards in manufacturing, health, safety and environmental practices. The company has invested significantly in its distribution and logistics network and is able to provide valuable products to all its suppliers and customers across hubs nation-wide. Daraju’s leadership is made up of seasoned professionals, who have deep experience manufacturing personal care and home care products. The investment from CAPE IV enables Daraju to expand its portfolio offering to reach every Nigerian household who demand locally manufactured quality products. All parties to the transaction are optimistic that Daraju’s extended portfolio of products and sustained market presence will benefit the Nigerian consumer and deliver attractive investment returns.
Mr. Peeyush Garg, founder and chairman of Daraju, commented: “Nigeria has a large population (~190 million), and Daraju seeks to position itself to meet the needs of this population. We are at the early stages of what we seek to achieve for and with the people of Nigeria, and with our partner (ACA), we hope to continue to provide high quality locally produced products which will rival any internationally imported personal care product. Most importantly this company seeks to build the local manufacturing capacity in Nigeria, train and impart valuable skills to the younger generation who will be empowered to build and grow other manufacturing businesses locally”.
Mr. Paul Kokoricha, of ACA, commented – “We are very pleased to be investing in the Nigerian manufacturing sector via Daraju Industries Limited. We believe there is a huge opportunity for good quality locally produced consumer products in Nigeria which can eventually be sold to neighboring countries. Bringing customers good quality and affordable products is the thesis underpinning this investment in Daraju Industries limited but most importantly we seek to support the growth of local manufacturing to help in building local skill transfer and competency locally. We are determined to support this mission for the benefit of every Nigerian. Daraju Industries Limited will continue to push the boundaries for the benefit of all stakeholders, especially its consumers.”
For more information please contact:
Investor Relations
Ir@acagp.com
Phone: +234 1 277 7000
About Capital Alliance Private Equity IV (CAPE IV)
CAPE IV is a private equity fund sponsored by African Capital Alliance Limited (ACA), to make equity and equity-related investments in high-growth target sectors in West Africa and the Gulf of Guinea region. The Fund’s target sectors include Fast Moving Consumer Goods (FMCG), Business Services, Energy, Financial Services, and Telecommunications, Media & Technology (TMT).
About ACA
Formed in 1997, ACA has over US$1 billion assets (at cost) under management. With a proven record of adding value to investments and delivering strong returns to investors, ACA has cemented its reputation as a leading private equity investor, investing in Nigeria and the Gulf of Guinea region (the “Region”). Our single investment size typically ranges from a minumum of $20m to up $80m.
Please click HERE to download a copy of Daraju’s Press Release. To know more about Daraju, click HERE
Protea Hotel by Marriott, Owerri select, opens
September 25, 2017, Owerri City, Imo State – African Capital Alliance today announced the opening of Protea Hotel by Marriott, Owerri Select in South-Eastern Nigeria. The 90-room hotel is the result of a partnership between African Capital Alliance and Kunoch Limited.
The hotel is located in Owerri city, the capital of Imo State, a state commonly referred to as the “Heartland” and regarded as the entertainment centre of Eastern Nigeria. It is also a producer of oil & natural gas, and home to a large number of oil and financial services offices.
Commenting on the opening of the hotel, Mr. Obi Nwogugu, Principal and Head of Real Estate at African Capital Alliance stated: “This new hotel is an important addition to the hotels we already own in the cities of Lagos and Benin in Nigeria, and Takoradi in Ghana. We are pleased to partner, yet again, with Protea Hotels by Marriott, which enjoys strong regional brand equity, now coupled with the global distribution of Marriott International.”
Mr. Volker Heiden, Vice President Protea Hotels by Marriott, Marriott International added: “The opening of Protea Hotel by Marriott, Owerri Select, illustrates our confidence in the potential of Nigeria and is in line with our commitment to grow in strategic secondary cities across the continent. The recent expansion of the city’s airport, will enhance its attractiveness as a destination, which we are confident will further drive business travel.”
ACA is currently investing out of its first real estate fund (CAPIC I), a $165 million private equity fund.
About Protea Hotels by Marriott
Protea Hotels by Marriott is the leading hospitality brand in Africa. It is one of the most widely recognized brands on the continent with over 90 hotels throughout South Africa and seven other African countries, including Zambia, Nigeria, Namibia, Ghana and Uganda amongst others.
About African Capital Alliance
African Capital Alliance (ACA) is a leading investment firm focused on Nigeria and the Sub-Saharan African region. Since its formation in 1997, ACA has attracted over $1 billion in aggregated capital commitments through four private equity funds and one real estate fund.
ACA has made more than 40 investments across a number of high-growth sectors, including oil and gas, power, TMT, financial services, FMCG and business services. It also has a history of successfully exiting investments and delivering strong returns to its investors.
ACA is currently investing out of its first real estate fund (CAPIC I), a $165 million private equity fund.