NIGERIA – Àrgentil Capital Partners, a Nigeria-based energy and infrastructure advisory firm, has provided additional debt and equity investment to support its portfolio company, Tempohousing Nigeria Limited (THN) which specialises in developing flexible and affordable residential and commercial spaces using modern prefabricated technology and cargotecture.
The spaces developed by THN continues to disrupt traditional market segments where high building and land costs in the cities makes it difficult for many people to access quality living and commercial workspaces.
The debt was provided to fund working capital to support the execution of on-going projects including renewable energy training centres at universities and healthcare projects, some for COVID-19 interventions across Nigeria.
Àrgentil also converted loan notes to increase its shareholding in THN to help position the company’s balance sheet for future growth. The company expects to execute a number of development projects in the near term to deliver shared and co-living spaces for young professionals as well as student accommodation given the significant demand in these sub-sectors.
The financing will also ensure THN continues to support its partners and clients to develop projects where its cargotecture and prefabricated technology delivers spaces quicker and cheaper in the education, healthcare, financial services, SME, and other sectors. The company’s projects are typically ~ 30% cheaper than traditional building costs and 3x faster to build.
Àrgentil first invested in 2018 via the Àrgentil Principal Investment Portfolio II (“APIP II) which invests equity and debt in SMEs operating in Nigeria. THN is a fast-growing SME with revenue growth of over 53% CAGR from inception in 2012 to 2019. The disruptive impact of THN’s solutions was acknowledged when Àrgentil received Private Equity Africa’s Deal of the Year (Small Cap) 2019 for the THN investment.
Àrgentil is currently fundraising for a new regional fund that will target investment opportunities in SMEs across a number of key growth sectors in West Africa with an immediate focus on Ghana, Liberia, Nigeria, and Sierra Leone.