Guinness Nigeria, a leading alcoholic beverage manufacturer and a subsidiary of Diageo, has put up for sale its 24.52 acres Oba Akran Road, Ikeja, Lagos brewery site, in what we learnt but not confirmed, is a potential relocation of that operation to Ghana.
The property is now being marketed by top level estate agents with an asking price of N8 billion slammed on it. We reliably gathered from sources close to the agents handling sourcing potential buyers that the brewer is moving the operations on that site to Ghana amid the birthing of the African Continental Free Trade Area agreement, which is now one year old and also to be a more conducive business environment.
The brewer is said to have moved all its operating machinery on the 24.52 acre site to Guinness’ new site in Ghana. And property experts have described the offer as “the cheapest commercial property in the heart of Ikeja, Lagos.”
Nigeria’s business environment has over the years seen several international firms or multinationals leave the economy due to the difficult environment it presents to businesses and entrepreneurs. But Guinness’ decision may not also be uncontennected to the fact that the ease of doing business, as well as, the conducive business environment in the country may have become very challenging.
In 2021, Guinness shares were among the best-performing stocks on the NGX, with a 105.3 percent return compared to the ASI’s return of 6.1 percent year on year. The major beverage and alcohol company, recorded handsome growth numbers in its second quarter of 2022 numbers filed to the exchange late last month, on the back of a strong performance in FY21 and Q1 2022, despite a challenging external environment due to continued restrictions related to COVID-19, high inflation, and increased operating costs.
The filing showed that at the close of the current operating quarter, the company recorded a 46 percent year on year revenue growth to N61.7 billion in Q2 of 2022, driven by resilient consumer demand and improved outlet coverage, as well as headline price increases in key brands. Revenue grew across all key categories, driven by the company’s strategic focus brands, Malta Guinness and Guinness, as well as double-digit growth in local and imported spirits and the ready-to-drink category.
However, official data on the N8 billion property shows that the 9.922 hectares or 24.52 acres factory still has its existing development on the site while the brewer relocates to Ghana. The existing developments include:
Administrative block: 498.68sqm; Warehouse 1: 23,369.68sqm; Warehouse 2: 9,029.99sqm; Amenities block: 1,490.49sqm; Silo block: 1,078.83sqm; Empty beer store: 462.66sqm; Dicalite powder store: 1,086sqm; Bye product store: 654.95sqm;Engineering store: 1,342.59sqm; Weighbridge house: 7.45sqm; Power house: 585.48sqm; Security gate house: 10.84sqm; Security gate house 2: 8.56sqm; Security gate house 3: 9.17sqm; Water treatment plant: 78.95sqm; Security gate house 4: 15.93sqm; Toilet block: 60.31sqm.
