South African asset manager Stanlib has partnered with Chestnut Uganda for the construction and development of a $50m shopping mall in Kampala.

Stanlib’s private equity Africa Direct Property Development Fund will provide $30m, whereas Standard Bank South Africa, the parent company of Stanlib, will contribute $20m of debt. 

Nnema Byrd, Stanlib Investment Principal, said: “We see a long term growth trajectory for Uganda, on the back of government spending on infrastructure. Kampala city is experiencing economic and population growth, adding to the need for an increase in formal retail offerings.”

Byrd added that Uganda’s long-term macro outlook remains positive, with GDP growth expected to reach 5.7% by 2018 and it is one of the fastest growing economies in Africa.

The new commercial development, sitting on a 5 acre piece of land, is expected to open doors in November 2018. 

The mall is located in Kampala’s Nsambya suburb, 2 kilometres south of the Central Business District.

The Arena Mall will be a 14,000 square metre shopping centre with supermarkets, retail shops, fashion development stores and a cinema.  

Seyani Brothers has been selected as the main contractor while Betts Townsend will manage the development and construction of the mall.