Africa Real Estate Platform (IFC-36873)

Regions
  • Africa
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 13, 2015
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
GROWTHPOINT INVESTEC AFRICAN PROPERTIES LIMITED
The holder of the loan, grant, or other investment.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 40.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 255.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 25, 2018

Disclosed by Bank Nov 9, 2015


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Project Description

This project finances the establishment of and the first capital raise for the Africa Real Estate Platform (AREP), an investment platform which will acquire and manage a portfolio of income-producing commercial properties in order to develop capital markets in sub-Saharan Africa.

Investment Description
  • International Finance Corporation (IFC)

The Africa Real Estate Platform (AREP) is being established by (i) Investec Asset Management (IAM), the asset management arm of Investec, a leading South Africa-based international financial services group; and (ii) Growthpoint Properties Limited (Growthpoint), South Africa's largest REIT. ManCo will be jointly owned by IAM and Growthpoint on a 50-50 percent basis. It will draw upon competences and experience of IAM and Growthpoint and manage HoldCo’s assets on commercial terms. IFC and ManCo’s shareholders are expected to jointly provide up to 40 percent of HoldCo’s initial capital through a targeted US$250 million capital raise. With IFC being an anchor investor HoldCo, the remaining HoldCo investors will be identified during the capital raise exercise. It is expected that, after several rounds of capital raising and deployment, AREP will reach an optimal size for an initial public offering (IPO) on a major stock exchange and convert into a form analogous to a real estate investment trust (REIT), which will achieve liquidity within 5-7 years. AREP is conceived to become one of the first REITs in SSA and the first Africa-focused collective investment vehicle designed to ramp up to a size feasible for a major stock exchange listing. AREP will target multiple countries in the Sub-Saharan Africa (SSA) region and will provide institutional investors, including African pension funds, with an opportunity for diversification. AREP will comprise: (i) an investment holding company (HoldCo), which will pool investors’ funds and use them to acquire income producing commercial properties in target African countries; and (ii) an asset management company (ManCo), which will manage HoldCo’s assets on commercial terms. Investors’ returns will come from rental cash flows of the property portfolio, as well as from capital appreciation.

Private Actors
  • Growpoint Investec African Properties Limited -- Financial Intermediary
Contact Information

Thomas Reilly
Head of Africa Real Estate
The Place, 1 Sandton Drive, Sandton, Gauteng, 2196
South Africa
Telephone: +27 11 944 6289
Email: mailto:thomas.reilly@investecmail.com

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