Singapore-listed Perennial Real Estate has tied up with hotel group Shangri-La Asia to build a US$250 million (S$351 million) mixed-used development in Ghana's capital Accra - the developer's maiden foray into Africa.
Perennial has acquired a 55 per cent stake in the 49,874 sq m site from Shangri-La for US$15.2 million. Shangri-La holds the rest.
The project, near Kotoka International Airport, will have a 162,000 sq m gross floor area comprising a hotel, residential towers, an office tower, a shopping mall and serviced apartments.
The total development cost, including land, is estimated at more than US$250 million. The project will be funded through the sale of its residential and office units. Internal funds and borrowings will also be used.
The project is expected to be completed in 2019 and will be managed jointly by Perennial and Shangri-La, except for the hotel, which will be managed by a Shangri-La subsidiary.
While Perennial's assets are mainly in Singapore and China, one of its largest sponsors, Wilmar International, has operated in Africa for more than 15 years. Wilmar had an effective interest of 11.8 per cent in Perennial as at July 16.
Perennial chief executive Pua Seck Guan said his company has the benefit of "leveraging on Wilmar's extensive knowledge, network and resources in selective high-growth emerging markets in Africa".
"Ghana is one of the most promising and investment-friendly African countries, having enjoyed good political stability, strong economic growth and a rapidly rising standard of living for the past two decades,"he said.
Perennial shares fell two cents to close at 98.5 cents yesterday.