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.
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.
Head of Africa Real Estate
The Place, 1 Sandton Drive, Sandton, Gauteng, 2196
Telephone: +27 11 944 6289
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