Tsogo Sun Group, owners of Southern Sun Ikoyi Hotel and other subsidiaries across Africa, has announced plans to invest $100m (N15bn) in two key projects of its subsidiaries in Nigeria and Mozambique.
According to a statement by the group on Thursday in Lagos, this is in line with the group’s growth strategy.
The Chief Executive of Tsogo Sun, Marcel von Aulock, was quoted as saying, “The project in Nigeria involves the acquisition of an approximate 75 per cent stake in Ikoyi Hotels Limited, the holding company of the Southern Sun Ikoyi Hotel in Lagos Nigeria.”
This hotel has been managed by the Group for the original developers since opening in 2009. The group’s expected investment, including loan funding, is approximately $70m (N11.6bn).
According to the statement, the acquisition is subject to several conditions precedent, including regulatory approvals. Shareholders will be notified once these have been fulfilled and the acquisition becomes effective, adding that the acquisition is not a categorized transaction in terms of the listings requirements of the Johannesburg Stock Exchange Limited.
It explained, “Tsogo Sun will spend $30m (R270m to expand its hotel in Mozambique, the Southern Sun Maputo. This will involve a complete refurbishment of the existing 158-room hotel, including the bedrooms and public areas as well as an expansion of the restaurant.
The Southern Sun Ikoyi Hotel, Nigerian subsidiary, is described as “centrally located with convenient access to prime business nodes in Lagos and comprises 195 guest rooms and suites, a restaurant, business centre as well as meeting room facilities. The hotel also has additional land available for future expansion.”