PE & Fundraising
US-based Milost snaps up Nigerian real estate firm for $1.1 billion
by DAVID IBEMERE
February 19, 2018 | 4:11 pm| | | Start Conversation
US-based private equity firm, Milost Global Inc. (“Milost”), together with its African subsidiary, Isilo Capital Partners (Pty) Ltd, says it has closed the 100 percent acquisition of Primewaterview Holdings Nigeria Limited, a large scale holding company with a portfolio of Real Estate, Oil & Gas, Quarry Mining, Healthcare and Power, for a total consideration of $1.1 billion.
The transaction is immediately accretive to Milost and Isilo Capital Partners, with Primewater’s stable revenue streams expected to contribute 10% accretion to Milost FFO on a run-rate basis.
Primewaterview Limited is a major real estate player in the luxury property development business of the Nigerian real estate market. The company is focused on developing residential property to a select clientele with an initial focus on highbrow areas in Nigeria’s densely populated Lagos State particularly Ikoyi, Victoria Island and the rapidly developing Lekki Peninsula, according to information provided on its website.
Primewaterview represents Milost’s first meaningful investment in Nigeria and provides a platform for further growth in the former’s operations.
The transaction represents all the assets that are owned and controlled by a prince Adetunji Ogunwusi and his partners. These include, but are not limited, to the 2000 bed Medical City project to be completed at the end of the first quarter of 2018, along with the tallest building project in Africa.
“The global reach and financial strength of Milost and the extensive presence of Primewaterview in Nigeria will definitely result in a new conglomerate that will become one of the biggest players in Nigeria and Africa,” said Eric Balogun, director, Primewaterview holdings Nigeria Limited.
“I am happy to have seen the giant stride that Primewaterview has taken in the Nigerian economy and I am eagerly awaiting the performance of the new Primewaterview Holdings that will emerge from this new takeover,” Balogun added.
The investment is expected to contribute approximately $900 million to Milost’s annual Funds from Operations (FFO).
Primewaterview’s cash flows are underpinned by long-term contracts with creditworthy off-takers.
The high-quality assets in the portfolio have some life remaining, consisting of old projects, recently constructed projects that have been operating for an average of three years and a large pipeline of good quality projects.
Primewaterview will be Milost’s primarily vehicle for acquisitions of assets in Nigeria.
This transaction is the largest in Nigeria for 2018 and will be followed by a large Nigerian bank and an insurance company acquisition which will close before the end of March 2018.
Solly Asibey, the Senior Partner & President of Milost Global Africa, stated, “This acquisition is in line with our strategy for the West African market, and also enables Milost to have a diversified portfolio that will serve all the various vertical industries in Nigeria. This bold step is a clear indication of our intentions to gain further traction within this market, and we are grateful for the opportunity to take Primewaterview to even greater heights.”
Tiny Deswai-Moreni, the CEO of Isilo Capital Partners (Pty) Ltd, also stated, “We are very happy about this acquisition. It is a very important investment for us at Isilo Capital Partners as it marks our entrance into the Nigerian market and economy which we consider the gateway into the rest of West Africa.”
“The acquisition is in line with our strategy for investing the Isilo Fund in diversified portfolios to ensure multiple streams of income for the fund. We are excited and look forward to serving the Nigerian people and working with the regulatory authorities and other stakeholders.”
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