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<\/p>\nReal estate<\/a><\/p>\n<\/div>\n Notwithstanding that real estate recovery has taken time to gain traction, foreigners are fueling capital injection in Nigeria and other Sub-Saharan Africa countries, with South Africa and United Kingdom investors leading the way.<\/p>\n Although, an oversupply of high-end property and limited access to finance have underpinned the market\u2019s slow bounce back, prospects are looking up for the second quarter of the year.<\/p>\n According to a report from international brokerage, Knight Frank, the persuasive long-term investment case for Sub-Saharan Africa has drawn increased numbers of international investors to investigate opportunities within the region over recent years, albeit transactional activity has been restricted by the limited availability of investment- grade stock and the opacity of the markets outside of South Africa. <\/p>\n Interest in the sector remains heightened, despite the weakening of some Sub-Saharan economies over the last two years.<\/p>\n Two years ago, Investors\u2019 appetite for Sub-Saharan real estate was highlighted by the announcement that the UK-based emerging markets specialist Actis had raised US$500 million for its third African property fund, Actis Africa Real Estate Fund 3. <\/p>\n This is the largest amount that has ever been raised for a private real estate fund focused on Sub-Saharan Africa outside South Africa, and it included a commitment from the Government of Singapore Investment Corporation (GIC).<\/p>\n The report revealed that Actis\u2019 two previous funds<\/a>, closed in 2006 and 2012, have been involved with some of Sub-Saharan Africa\u2019s most modern commercial property developments, in countries such as Ghana, Kenya, Nigeria and Tanzania. <\/p>\n In recent years, Actis has exited from many of its first wave of investments, selling its interests in assets including the Accra Mall, Nairobi Business Park and Ikeja City Mall.<\/p>\n When Actis launched its first Sub-Saharan Africa fund over a decade ago, it was a pioneer entering a market largely untapped by global property funds. <\/p>\n However, its third fund will enter a significantly more crowded marketplace as a series of property investment vehicles have emerged in recent years targeting Sub-Saharan real estate. <\/p>\n Many of these are South African- controlled funds, albeit often registered or listed<\/a> offshore in Mauritius.<\/p>\n A prominent example is RMB Westport, which was created in 2008 as a joint venture between Rand Merchant Bank and the Westport Property Group. <\/p>\n Its development projects were the Wings Office Complex in Lagos and Muxima Shopping Centre in Luanda. RMB Westport\u2019s second fund, which has a target of raising US$450 million, has attracted commitments from both GIC and the UK investor Grosvenor.<\/p>\n Other real estate investment<\/a> vehicles to have been launched in the last two years include a pan-African joint venture created by Growthpoint and Investec, which has the target of raising US$500 million. <\/p>\n Momentum Global Investment Management and Eris Property Group have also formed a joint venture, the US$250 million Momentum Africa Real Estate Fund, which has allocated capital to development projects in Ghana and Nigeria.<\/p>\n The Anglo-South African group Old Mutual signalled its intention to expand its African footprint by announcing a partnership with the Nigerian Sovereign Investment Authority. <\/p>\n This venture aims to raise US$500 million for a real estate fund, in addition to a US$200 million agriculture investment vehicle. <\/p>\n A further noteworthy event was the creation of Mara Delta, a pan- African real estate fund formed from the merger of Delta Africa and Mara Diversified Property Holdings. <\/p>\n During 2016, Mara Delta was one of the most acquisitive buyers of real estate across the region, growing a portfolio which currently includes assets in Kenya, Mauritius, Morocco, Mozambique and Zambia.<\/p>\n An estate surveyor and valuer, Mr. Akin Olawore who doubles as the president of Nigerian-British Chamber of Commerce (NBCC), told The Guardian that most of the commercial buildings standing today were financed and built by such investors.<\/p>\n \u201cThese are part of the sums that make up Foreign Direct Investments (FDI) to Nigeria, which is highest in the last five years in SSA.<\/p>\n \u201cStatistics show that we have opportunities in those sectors and also have the strength of bringing in anchor tenants. <\/p>\n Also private equities need big assets to finance to be lucrative, a number of these assets may be bundled into REITS package to create exit for the investors to take over. \u201c<\/p>\n A past Chairman of the Nigerian Institution of Estate Surveyors & Valuers (NIESV), Lagos State Branch, Mr. Stephen Jagun said that the returns are too juicy to be ignored. <\/p>\n \u201cGet the right location and deliver a super product; and if possible pre-let or pre-sale to target audience. We also have the huge population to our advantage.\u201d<\/p>\n For Mrs. Erejuwa Gbadebo, Chief Executive Officer, International Real Estate Partners (IREP) Nigeria said the foreign investors have not revived the real estate.\n<\/p>\n Guardian <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"