BUILDING LANDMARKS, CHARTING GROWTH
55
Annual Report 2015
Maiden Foray into Africa
In August 2015, Perennial entered into a 55-45 JV with
Shangri-La Asia Limited (“
Shangri-La
”) to develop an
integrated mixed-use development of about 1.7 million sq ft
of GFA in the prime Airport district of Accra, the capital
of Ghana.
Accra Integrated Development, to be built at a total
development cost of over US$250 million (approximately
S$352 million), will comprise a shopping mall, residential
towers, an office tower, serviced apartments, and a 5-star
hotel to be managed by Shangri-La.
The integrated development marks Perennial’s first
venture into Africa to access the wealth of opportunities
on the continent, and is in line with Perennial’s strategy
to leverage on its sponsors’ experience and network of
relationships to achieve first mover advantage in high
growth emerging markets. For this project, Perennial
will be able to leverage on our sponsor Wilmar
International Limited’s extensive knowledge, network
and resources in Africa, where it already has a strong
and established presence.
Stable Platform to Access the African Continent
Ghana is one of the most prosperous and stable
countries in sub-Saharan Africa, with one of the highest
GDP per capita
18
and a high standard of living. A regional
powerhouse, it is rich in natural resources, such as gold
and other precious metals, and is also one of the largest
producers of cocoa in the world.
Being politically stable, Ghana is ranked as one of
Africa’s most promising countries for FDI
19
. After a
decade of accelerated economic growth, the country
is now undergoing a comprehensive economic reform
process, due to fiscal challenges in recent years.
The economy is expected to improve in 2016,
bolstered by infrastructure investments. With continual
improvements in macroeconomic and political stability,
Ghana is expected to have a positive long-term outlook.
The successful execution of this signature project will
make it an ideal launch pad for Perennial to access the
rest of the African continent.
Prime Real Estate to Meet Strong Demand
With the large number of expatriates and rising local
expectations in Ghana, there is a demand for high
quality real estate which has not been adequately met
by market supply. This has resulted in correspondingly
high prices for hotel rooms, residential units, as well as
retail and office spaces – in some cases, even pricier than
in developed markets. Amidst this scarcity, international-
standard real estate has done well, setting sale price
records and enjoying good reputation and prestige.
The site is located in the prime Airport district of Accra
with prominent frontage onto the key Tetteh Quarshie
road interchange, which links major thoroughfares
leading towards Accra city centre and other nearby cities.
Its close proximity to the Kotoka International Airport
is a key selling point to investors and businesses, as it
provides convenient access without needing to deal
with the traffic gridlock commonly experienced in
central Accra.
With excellent real estate fundamentals, such as its prime
location, good accessibility and high product quality, this
iconic development has the natural elements to be the new
centre of commerce for Accra. The development will also
set a new benchmark for the design and quality of integrated
real estate in the broader African market, and be a prime
example to showcase the convenience and complementary
benefits of a well-planned integrated project.
Strategic Priorities in 2016
The key approval-in-principle for theproposed scheme has
been obtained from the Government Municipal Assembly.
This year, the focus will be on refining the detailed design
and starting strata sales of the residential and office
components. The Accra Integrated Development is set
to be the new standard-bearer for an international-quality
one-stop ‘Live-Work-Play’ commercial hub in Ghana,
when it commences operations in 2019.
18 Source: IMF, World Bank.
19 Source: “Financial Times, fDi Intelligence-
‛
The fDi Report 2015
ʼ
.”
