Investec Asset Management, Growthpoint Properties and International Finance Corp. (IFC) have received $212 million in equity commitments for a pan-African real estate investment joint venture.
Growthpoint Investec African Properties (GIAP) will seek to invest in income-producing commercial real estate assets in select cities across the African continent. Targeted investments will be further diversified by sector, with GIAP’s mandate spanning office, retail and industrial properties.
“A key issue for real estate developers across the continent has been their ability to efficiently exit completed assets so they can recycle and re-deploy capital. We are working closely with a number of players in the space who consider GIAP’s entry as an asset aggregator a welcome development in this regard,” said Thomas Reilly, managing director of Growthpoint Investec African Property Management.
GIAP is expected to aid the development of local African real estate markets and to contribute to the wide-ranging developmental impact that real estate can have in such markets.
“Africa has had few sophisticated players with the ability to meaningfully impact the capital markets in the real estate sector. We believe that GIAP is well positioned and has the necessary backing to add to the growth of this market over time, attract the necessary skills, and extract value on a sustainable basis, ”said Thabo Khojane, managing director of Investec Asset Management Africa.