Growthpoint Partners With Investec, IFC on Africa Real EstateBy
Growthpoint Properties Ltd., South Africa’s biggest real-estate investment trust, agreed to a joint venture with Investec Asset Management to expand on the continent outside of its home market.
Growthpoint will have a 50 percent stake in the new vehicle and make an initial investment of $50 million, while the International Finance Corp., an arm of the World Bank, will contribute $40 million, Johannesburg-based Growthpoint said in an e-mailed statement on Tuesday. The partners will seek to raise a further $410 million from institutional investors and will look at listing the business on a stock exchange in the next five to seven years.
The new business will target investments in countries including Namibia, Botswana, Zambia and Kenya, with about 80 percent of the real estate portfolio to be income-producing assets and the balance to be earmarked for new development, Growthpoint said.
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