The Nigeria Sovereign Investment Authority (NSIA), manager of Nigeria’s sovereign wealth fund, has signed a $700 million (about N224.17 billion) real estate and agriculture deal with South Africa’s Old Mutual Investment Group (OMIG).
Under the deal, signed in Abuja at the weekend, NSIA will partner with South Africa’s OMIG UFF Agri-Fund to establish a $500 million real estate co-investment vehicle and a $200 million agriculture co-investment vehicle.
NSIA’s Managing Director, Uche Orji said the deal would cover retail assets, especially office buildings.
He said: “The objective is to invest $500 million in commercial and retail assets, especially office buildings and hospitality facilities. The vehicle is expected to have initial commitments of up to $100 million each from NSIA and Old Mutual and is targeting a total commitment size of $500 million with deal origination and execution to be undertaken jointly by both parties.
“(For that of agriculture), both parties will make commitments for an initial vehicle size of $50 million ahead of the targeted size of up to $200 million, with deal origination and execution to be undertaken jointly 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.”