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$68m Novare Mall begins operation in Abuja

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Mall
  • $68m Novare Mall begins operation in Abuja

Nigeria’s mall segment of the real estate sector has continued to thrive, notwithstanding the supposed downturn in the industry. This position is further buttressed with the investment of $68 million in the development of Novare Gateway Mall in Abuja.

The mall, from the stable of Novare Real Estate Africa, which is being inaugurated today, is the third of such retail and commercial development in the country, and it is the firm’s largest in Abuja.

Other malls in Abuja owned by Novare Real Estate Africa include the 8, 267 square metre Novare Apo Mall, located about 18km from Novare Gateway to the southeast of Abuja. Similarly, in Abuja Novare is developing a 12,508-square metre Novare Central Office park- a mix-use centre consisting retail space and A-grade offices.

Described as a “modern lifestyle centre offering an enticing combination of shops, restaurants and entertainment,” the Novare Gateway Mall sits on 15,000 square metres of space, accommodating 60 stores, and with the capacity to park over 600 cars. There is also provision for a second phase development, which will see another 10,000 square metres added to accommodate 33 more shops.

Located on main 10-lane highway between the Nnamdi Azikiwe International Airport, and the Central Business District (CBD), Novare Gateway can be said to be perfectly situated to meet the needs of the growing Abuja community.

With Shoprite as the anchor, the mall’s tenant mix includes international and local brands, covering fashion and accessories, restaurants, electronics, health and beauty, furniture, home improvement, telecommunication, entertainment, cinemas, as well as banks and ATMs.

Novare Real Estate Africa Chairman Prof Fabian Ajogwu (SAN), in a chat with The Nation prior to today’s inauguration, said the Novare Gateway Mall “transcends the over $68 million of foreign direct investments and will create over 5,000 jobs through direct and indirect employment from the development stage to completion and commencement of operation.”

He explained that the investment has shown the firm’s belief in the economy. For him, it is a wise investor that prepares ahead of the market, which he said is exactly what his Group is doing in the Nigerian economy.

Ajogwu said the inauguration of its third mall in Abuja is a strategic marketing decision considering that some “areas have too many malls servicing them at the expense of some other areas.”

This strategic marketing positioning of its malls, Ajogwu further revealed, accounted for why its numerous clients go with them wherever they locate their facility. “Our clients (tenants) know we cannot be wrong in our choice of location. They know that we would have done thorough market research before we site our mall anywhere, which they know also translates to good market for their business; this is one reason why they go with us anywhere we go,” he said.

Novare Real Estate Africa Managing Director, Mr. Jan van Zyl, thanked the firm’s partners and associates in the country for making the development a reality. Novare, he explained, has built a team with unrivalled expertise in investment management, property development and facility management.

“Our ability to successfully develop and manage modern retail and commercial facilities is based on a hands-on approach and on-the-ground presence that ensures that we deliver for tenants and investors,” van Zyl said.

Novare Equity Partners Chief Executive, Mr. Derrick Roper, in a similar vein, expressed satisfaction with the project completion and inauguration. “We’re very proud to have completed Novare Gateway. This is our largest project so far in Abuja, contributing to infrastructure development, sustainable job creation, trade and consumer demand for a modern shopping experience,” he remarked.

In Lagos, the group developed the 22, 000 square metre Novare Lekki Mall, which commenced trading in August 2016. Novare Lekki was awarded Real Estate Deal of the Year by the Lagos Chamber of Commerce and Industry (LCCI) at its 2016 commerce and industry awards last July.

Novare Equity Partners is the sub-advisor to the group, tasked with sourcing and presenting new development opportunities to the management of the Novare Africa Property Funds. With a strong on-the-ground presence in all countries, where the funds invest, it has managed to source some of the most exciting new development opportunities across the sub-continent.

Novare Fund Manager is a private equity fund manager, managing investments in the real estate sector, both retail and commercial, exclusively in sub-Saharan Africa outside of South Africa. It manages the Novare Africa Property Fund I and II, domiciled in Mauritius and funded predominantly by South African pension funds. The group has a seven-year track record of successful real estate development in retail and commercial property in sub-Saharan Africa outside of South Africa.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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