AXA Mansard to invest in $41m hospital project in Lagos

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AXA Mansard Insurance Plc (AXA Mansard), Lagos based insurance company in a statement released to the Nigerian Stock on Exchange on Wednesday stated that it was in the process of partnering with International Finance Corporation (IFC), a member of the World Bank Group and a couple of other companies on the possibility of investing in a hospital project in Lagos.

IFC in an earlier statement said it was considering a USD $8.2m equity investment for a 20% equity stake in a hospital project in Lagos, Nigeria sponsored by AXA Mansard Insurance. This will put the full value of the project at $41 million.

AXA Mansard stated that the proposed investment is a Greenfield integrated medical facility comprising of a 150-bed multi-specialty hospital and two 10-bed primary health centres/polyclinics.

The statement read, “The Project once approved will be managed and operated by Healthshare Health Solutions Ltd (Healthshare), an experienced hospital management company with headquarters in South Africa.

“AXA Mansard and IFC are still at the preliminary stage of discussions and their Boards are yet to pass final resolutions approving the investment.”

IFC in the earlier statement said the hospital will be built on a 20,000m2 land purchased by AXA Mansard in Ikate Elegushi, Lekki along the Lekki/Epe Expressway, which was a portion of Bela Vista Estate and is classified as commercial land.

The funds will be used to support the green-field development, construction and operation of a 150 bed hospital and two clinics; one within the mainland and the other in Lagos Island, serving as feeders. Africa Capital Alliance (ACA), a private equity fund, is also considering to invest in the project for a 40% stake.

AXA Mansard has also partnered with Healthshare Health Solutions Ltd, a South African hospital operator with international hospital development and management experience to manage and operate the hospital. In addition to Healthshare’s management role, Healthshare’s parent company, EOH Holding Ltd will invest equity for a 5% equity stake in the Company. EOH Holding Ltd is a major South African business and technology solution provider.

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