SIA, firms seal $700m deal in real estate, agric

The Nigeria Sovereign Investment Authority (NSIA), managers of the nation’s sovereign wealth fund (SWF), has entered into agreements with Old Mutual Investment Group (OMIG), South Africa, and UFF Agri-Fund for the establishment of a $500 million real estate co-investment vehicle and another $200 million agriculture co-investment vehicle in Nigeria.

Under the real estate agreement, the objective is to invest $500 million in commercial and retail assets. The vehicle is expected to have initial commitments of up to US$100 million each from NSIA and Old Mutual out of a planned total commitment of US$500 million to be jointly executed by both parties. 

While for agriculture, both parties will commit an initial investment of US$50 million ahead of a targeted $200 million, jointly executed by NSIA and UFF Agri-Fund.The aim of the agreement is to improve Nigeria’s food security and promote rural economic development to capitalise on the growing opportunities that the Nigerian agricultural industry provides. NSIA and OMIG’s interest in the real estate and agriculture sectors is underpinned by a shared vision of the significant opportunities presented by both sectors, given a number of advantageous socio-economic trends prevalent in Nigeria.  

Speaking at the event, which was held last Friday in Abuja, Nigeria’s Minister of Finance, Mrs. Kemi Adeosun, said the groundbreaking announcement between the NSIA and the Old Mutual marks a critical milestone towards delivering on NSIA’s broader mandate to invest in key sectors of the Nigerian economy.

Her words: “It is consistent with the administration’s concerted efforts to diversify the Nigerian economy away from oil and attract investments into other core sectors which can stimulate sustainable growth.” 

While commenting on the significance of the agreement, Managing Director & CEO, NSIA, Uche Orji, said: “We believe that the real estate and agriculture sectors offer considerable potential for economic growth in Nigeria. Our commitment in these sectors is underpinned by the economic imperatives of urbanisation, population growth and enhancement of liquidity for the sectors. The real estate vehicle once created alongside the agriculture vehicle will be configured to address some of these issues. 

“The NSIA will continue to serve as a catalyst for private sector involvement in key sectors of the economy by exploring partnerships with credible entities such as Old Mutual Investment Group and UFF Agri-Fund.” 

Also commenting on the deal, OMIG CEO, Diane Radley, said that the partnership with NSIA is a critical step in the development of OMIG’s commercial real estate and agriculture strategies in Africa. Her words: “As the largest manager of real assets in Africa, we have a deep belief in the opportunities in agricultural and real estate investment across the African continent. Our dealing with agriculture as an asset class has shown that it has already gained huge momentum globally, but is still in its infancy in Africa. This presents a significant investment opportunity for both local and international investors,” she explains. 

According to Radley, “This experience, combined with NSIA’s significant local knowledge and capacity in the real estate and agriculture sectors of the Nigerian economy, allows for a formidable partnership and our business is honoured to be entering into this agreement with them.“Together we believe we can add significant value to both our clients as well as the development of the Nigerian economy as we continue to be committed to sustainable, long-term investing,” she added.

OMIG is one of Africa’s largest asset management groups, The Group’s multi-boutique investment environment offers investors access to a comprehensive offering of investment solutions across the risk/return spectrum.With over R568 billion assets under management, it’s investments range from listed pure equity, asset allocation, fixed income and index-tracking investments to unlisted alternative assets such as property, private equity, infrastructure and socially responsible investments.  

UFF on the other hand is the leading specialist in agri-investment in Africa, which it combines with African sustainability by providing investors with a compelling risk/return profile. Its experts in the field are part of an extensive network that yield trust and confidence for investors, giving them access to attractive investment opportunities.Based in South Africa, Mauritius and the Netherlands, UFF has a solid track record and a tried and tested investment method.