Mixta Nigeria is a leading real estate development company in Nigeria. The company has a strong track record and diverse real estate portfolio, with operations spanning the residential, commercial, retail and leisure sectors of the Nigerian real estate industry.
In order to raise longer term financing for the development of its affordable housing strategy, Mixta Nigeria decided to issue a series 2 tranche to support two affordable housing projects in Lagos. The partnership with GuarantCo has strengthened Mixta Nigeria’s market position and has differentiated their business. GuarantCo provided the company with the opportunity to provide affordable housing across Nigeria whilst Mixta Nigeria stabilises its cost of capital.
According to the Centre for Affordable Housing in Africa (2016), Nigeria has a deficit of 17 million housing units for an estimated population of 182 million people. This scarcity of housing is the result of a lack of long-term affordable funding options for developers and buyers, leading to a shortfall of affordable housing, expensive local debt and consequently high prices. GuarantCo’s support will enable the refinancing of shorter-term expensive local debt into longer tenured instruments, and to secure the development of 5,000 affordable houses. As a result, over 24,000 additional people will have access to affordable housing in Nigeria whilst creating 1,130 jobs at the construction site.
Mixta Nigeria anticipates that the rapid population growth in Nigeria, combined with a high rate of urbanisation will further increase aggregate demand for housing. Mixta is confident that it has the capacity to not only improve conditions for the lower middle class but also to create a “snowball” effect, over time increasing the affordability of housing at all levels in Nigeria.