Growthpoint Investec African Properties, the 50/50 pan-African Real Estate joint venture established by Investec Asset Management and Growthpoint Properties in November 2015, has secured a $40 million equity commitment from the IFC. The venture’s strategy is to invest in income-producing commercial properties in several African countries over the next 5 to 7 years before exiting via a listing on a major stock exchange.
The capital is the first reported commitment to the new real estate investment platform, which is reportedly looking to raise an initial $250 million from a broad range of institutional investors who will earn returns from a combination of rental cash flows and capital appreciation in the portfolio the platform builds. Thomas Reilly, the former CEO of Sanlam’s Africa Property Fund business, is heading up the new venture, which will operate out of offices in Cape Town.
The new platform hopes to capitalize on the demand for quality office, retail, logistics and industrial properties created by the growing requirements of Africa’s rapidly expanding, increasingly urban consumer class. Commenting on the investment, the IFC’s Director for Eastern and Southern Africa, Oumar Seydi said “As Africa grows it will require improved properties and large-scale developments that can be used by productive businesses and meet increasing consumer demand. We are confident that Investec Asset Management and Growthpoint Properties provide the right combination to successfully create a robust portfolio of property investments across Africa.”