Investec Asset Management and Growthpoint Properties announced today that they have entered into a joint venture agreement, which in partnership with IFC, a member of the World Bank Group, will seek to establish and grow a significant diversified pan-African real estate investment business.
In addition to its 50% direct stake in the venture, Growthpoint, South Africa’s largest real estate investment trust, will together with IFC also support it with a substantial investment. Norbert Sasse, CEO of Growthpoint Properties, explains: “This development has been in the making for some time. It needed the right partners and expertise to create a powerful platform for pan-African property investment. We are thrilled to embark on this venture with Investec Asset Management and IFC to build this into a significant pan-African real estate business.”
He adds: “We believe this model represents a compelling investment opportunity for Growthpoint in African real estate markets. This undertaking allows Growthpoint to further diversify its assets and harness opportunities across the African continent to seek value for our stakeholders.” John Green, Head, Global Client Group at Investec Asset Management, comments: “We believe the African real estate markets are well positioned for a long-term growth phase given the significant supply deficit across the continent. We are excited about this unique partnership as it brings together our pan-African investment experience with Growthpoint’s industry-leading property investment expertise and IFC’s deep knowledge of the continent.”
The new venture’s dedicated senior management team has a collective 30 years of experience in real estate and investment on the African continent and will be led by Thomas Reilly. He is widely respected for his commercial real estate knowledge, his African property investment experience, and his work in multiple African markets. Reilly comments: “This venture provides a significant opportunity to facilitate the growth and liquidity of real estate as an asset class across the continent.”