A new democratic study on the fast growing Lekki Peninsula has shown that there are still investment opportunities in retail market in that corridor despite the existence of two big shopping malls, The Palms and Circle Mall, which are anchored by Shoprite—the South African retail chain.
Lekki is a predominantly residential upper-middle class neighbourhood in Lagos that has seen mass movement of people and businesses such that the axis is today adjudged the fastest growing and developing residential and commercial destination in Nigeria.
RMB Westport, a South Africa real estate investment and development firm, which conducted the study, explained to BusinessDay that within the catchment area of its proposed Royal Gardens Mall on which construction has started and is expected to be completed in 24 months, there are 114,002 shopping population who has an annual shopping spend of USD$241.0 million.
Lekki has an exciting and progressive growth and the report also reveals that in 2011, its shopping population was 95,240 with an annual spend of USD$179.7 million; in 2013, it was 101,525 people with USD$200.6 million; this year, the population is expected to grow to 114.002 with $241.0 million, while in 2019, it will jump to 127,017 with annual shopping spend estimated at USD$281.7 million.
“The forecast retail market demand in Royal Gardens’ catchment area for 2016 indicates a sustainable gross lettable area (GLA) of 36,438 square metres for a shopping mall that would function as a regional centre”, says Roy Hamlyn, RMB Westport’s Development Manager, adding that the Royal Gardens development was 30,124 square metres and would be completed in December 2017 which indicates the sizable market potential of the development.
Hamlyn noted that the Lekki-Epe Expressway was a corridor of development and urban expansion of Lagos, where properties suitable for large-scale commercial developments were scarce along the parts of this expressway that has an in-place catchment population.
The mall is aimed to be an accompaniment of the Royal Gardens Estate, which is located in an area of development along the Expressway and is being established as a housing estate for middle and upper middle-income residents. The estate as a whole occupies approximately 150 hectares.
The Mall will be sitting on 9 hectares of land, facing the Expressway and according to Hamlyn, “the project site is a long rectangular property that faces onto the expressway and is at the entrance to the Royal Garden Estate”.
