adminSA institutions, developers and listed-property players continue to expand their real estate footprints into the rest of Africa, creating more opportunities for investors to share in dollar-based returns offered by the continent’s burgeoning retail, office, industrial and residential property markets.
According to a Business Day report, life assurer Momentum, in conjunction with developer Eris Property, last week announced details of its African Real Estate Fund, an unlisted $250m venture aimed at institutional and high-net-worth private investors.
Initial projects earmarked for development include an office complex in Accra, Ghana, a retail centre in Maputo, Mozambique and an office and hotel project in Kigali, Rwanda.
The head of Africa investment strategies at Momentum Global Investment Management, David Lashbrook, said the closed-ended fund was a capital growth play targeting a minimum internal rate of return of 18 percent in dollars net of all fees, over an eight-year lifespan.
‘We believe that investing in the development of commercial real estate is an exciting way for investors to support and participate in the rise of the African consumer.’
Momentum follows the likes of Sanlam and Liberty, who have launched similar African property funds in recent years.
The tally of JSE-listed companies that are investing in Africa’s brick and mortar markets also continues to grow. – Business Day.
Online Reporter