Eris Student Accomdation Newco (IFC-43138)

Countries
  • South Africa
Geographic location 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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 20, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ERIS STUDENT ACCOMDATION NEWCO LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 9.02 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 150
Converted using 2020-10-07 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 29, 2020

Disclosed by Bank Oct 7, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided information, the proposed IFC investment is a ZAR150million equity investment in Momentum Student Accommodation Impact Fund Proprietary Limited  (‘The Company” or “MSAIF”), an open-ended investment company developing and operating affordable, purpose-built student accommodation (“PBSA”) in South Africa (SA). MSAIF is registered as a private limited liability company and is managed by Eris Property Group, a leading property developer and real estate fund manager in SA.

MSAIF’s business model is to provide serviced safe, secure, affordable purpose-built student accommodation that is located close to Public- universities and/or Technical Vocational Education and Training (TVET’s) (which will be marketed under the “Rise Living” brand). MSAIF has developed one asset named “Units on Park” in Hatfield Pretoria; a 998 bed development. Concurrently, MSAIF is pursuing a pipeline of additional development and investment opportunities and expects to grow to 10/12-asset portfolio over the next 5 years. The proposed IFC financing package is to support MSAIF’s growth plans.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

MSAIF has a total committed capital target size of ZAR2.0billion, of which IFC’s proposed investment is up to ZAR150million in equity, not to exceed 20% of total committed capital.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Eris Property Group (“Eris”) is an integrated property and service operation in South Africa which provides commercial property development and management services in South Africa and across Sub-Saharan Africa.  Eris is majority owned by MMI Holdings, SA’s third-largest long-term insurer (total assets of ZAR503b (US$33.3b); market cap of ZAR27.6b (US$1.8b)) as at July 2020. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Eris Property Group Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Eris Property Group
Barend de Loor
Chief Executive Officer
+27 11 755 1000
bdeloor@eris.co.za 
3 Gwen Lane, Sandton, Johannesburg, 2000, South Africa
https://www.eris.co.za/ 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries 

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org 

How it works

How it works