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Investec and Growthpoint target $250mln for real estate

Investec Asset Management and Growthpoint Properties are teaming up and forming a 50/50 joint venture to establish a pan-African real estate investment platform. In addition to its direct stake in the venture, Growthpoint, South Africa’s largest Real Estate Investment Trust will, together with the IFC, provide a significant amount of start-up capital for the platform.

According to the IFC’s Summary of Investment Information, the platform is planning an initial capital raise of at least $250 million, targeting a broad range of institutional investors including sovereign wealth funds, pension funds, foundations, endowments and funds-of-funds.

The platform will be headquartered in Cape Town, and will look for opportunities across several African countries, acquiring and in some cases developing income-producing commercial properties. The aim is to grow the platform to an optimal size over the next 5 to 7 years before listing it on a major stock exchange. Investor returns will be delivered from a combination pf rental cash flows and capital appreciation in the portfolio the platform builds.

“This development has been in the making for some time’” said Norbert Sasse, Growthpoint’s CEO. “It needed the right partners and expertise to create a powerful platform for pan-African property investment. We are thrilled to embark on this venture with Investec Asset Management and IFC to build this into a significant pan-African real estate business.”

Thomas Reilly, who was previously the CEO of Sanlam’s Africa Property fund business, will head up the senior management team, who between them have significant experience and expertise in real estate and investment on the continent.

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