MPICO Malls Limited

completed

The project involves construction and operation of a new shopping centre in Lilongwe, the capital city of Malawi. The centre is named the “Gateway Mall” and will be located on a 9 ha site approximately 2 km from the Lilongwe Central Business District (CBD). The facility will comprise a single storey structure with an enclosed roof accommodating approximately 18 000 m2 of floor space for letting to individual service providers. Most of this floor space will be allocated to retail shops which include South African and local companies. Specific areas in the centre will also be dedicated to telecommunications service providers, banking institutions, a food court, three cinemas and a gym. All the parking will be located externally, with sufficient space for almost 1,000 vehicles. This excludes a specific area for public transport vehicles, and taxis. Of the 9 ha, the shopping centre will occupy some 7.5 ha and the remaining land may be used for development of a hotel in the future. The Malawi Property Investment Company Limited (“MPICO” or “the company”) is developing the shopping centre and has acquired a 99 year lease for the land from the Government of Malawi. MPICO is the largest property company in Malawi and listed on the Malawi Stock Exchange. The Old Mutual Life Assurance Company (Malawi) Ltd. owns 55% of MPICO, with the remaining shares being publicly owned. The project Sponsors include MPICO and the company’s majority shareholder. The total project cost is $37 million and IFC is considering an A loan of up to $10, million and a C loan with a ceiling of $2 million to MPICO. Construction is expected to commence in May 2010, with completion scheduled for September 2011. The site and broader environs have been zoned for commercial and institutional use in accordance with the Lilongwe Urban Development Masterplan. The site is considered to be a prime position in the City given its proximity to the intersection of the new Western Bypass to be constructed, the highway linking Lilongwe with Zambia, and the CBD.