Twin Palms Mall

completed

The Twin Palms Mall is a brownfield development for the acquisition and expansion of a strip mall in Lusaka, Zambia (“the Project” or “Mall”). The Project is being established by Novare Africa Property Fund II (NAPF II), in which Novare Fund Manager Limited (Mauritius) is the fund manager and Novare Equity Partners (PTY) Limited (South Africa) is the sub-advisor (jointly "Novare"). NAPF II focuses on commercial property development in Sub-Saharan Africa (SSA). The Fund is a follow-on to Novare’s first fund, Novare Africa Property Fund I (NAPF I), which raised US$81M predominantly from South African pension funds. Novare currently has four projects in Nigeria of which three are operating malls and one is under construction (an office complex with retail). In addition, Novare has a further operating shopping centre in Mozambique. NAPF II has a pipeline of commercial property projects in Nigeria, Zambia, Mozambique and other SSA countries. Each project, such as the Twin Palms, is owned by a special purpose vehicle (SPV) or Company, each with separate governance structures. The Project SPV that will be acquired by the NAPF II to develop the Twin Palms Mall (“TPM”) site is Twin Palm Shopping Mall Limited (TPSM).The objective is to acquire and expand an existing strip mall (Twin Palms Mall), Phase 1 of which was constructed in Saloma Park on Farm 378a, subdivision No. 862 of Subdivision B, formerly part of Agri-Flora Farm, Lusaka. The site consists of one large retailer (anchor tenant) and 23 other shops, and has a current footprint of 7,500 m2. The mall has been fully operational since 2014. The Project will consist of a second Phase to be constructed on the undeveloped portion of Farm 378a, located adjacent to the existing mall and parking area. The expansion area is land zoned for commercial development of 180m x 100m, which constitutes: an open field, a gravel access road to the existing mall’s delivery yard; three shipping containers (storage of mall equipment and stock), and a perimeter fence. A road to the east of the site leads to Simon Mwansa Kapwepwe road, while on the northern and western sides are residential houses. To the east is open land and commercial buildings. The expansion will increase the total footprint to 12,000m2, and will involve the construction of additional retail space (4,500 m2, single story), and an extension to the car park (1,800m2) and delivery yard (“The Project”). The proposed investment is a financing package to the TPM of an A loan of US$6.8M.